Looking for growth stocks? Pay attention to Goldpac Group Ltd
26/03/2015 • About Goldpac Group Ltd (
$3315) • By InTwits
Goldpac Group Ltd is a growth stock in Commercial Services industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Goldpac Group Ltd showed growth in the last financial year. The company's revenue surged on 36.8% in FY2014. At the same time Goldpac Group Ltd well managed its profitability and also showed EBITDA growth of 12.8% for the same period.
In the longer period the company showed fast revenue growth of 50.7% from 2011 to 2014 annualy. EBITDA surged on 52.1% from 2011 to 2014 annualy.
Goldpac Group Ltd ($3315) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 357 | 444 | 677 | 1,112 | 1,521 |
|---|
| Revenue growth, % | | 24.4% | 52.3% | 64.4% | 36.8% |
|---|
| Gross margin, % | 35.6% | 32.9% | 30.1% | 29.1% | 27.5% |
|---|
| SG&A, % | 11.7% | 11.0% | 8.18% | 8.04% | 9.41% |
|---|
| EBITDA | 78 | 71 | 151 | 222 | 250 |
|---|
| EBITDA growth, % | | -9.5% | 112.9% | 46.6% | 12.8% |
|---|
| EBITDA margin, % | 22.0% | 16.0% | 22.3% | 19.9% | 16.4% |
|---|
| Net Income | 53 | 48 | 115 | 141 | 214 |
|---|
| Net Income margin, % | 15.0% | 10.8% | 17.0% | 12.7% | 14.0% |
|---|
| |
| CAPEX | 16 | 18 | 30 | 50 | 89 |
|---|
| CAPEX/Revenue, % | 4.48% | 3.98% | 4.48% | 4.45% | 5.88% |
|---|
| Debt | 35 | 180 | 48 | 15 | 0 |
|---|
| Cash | 44 | 22 | 42 | 394 | 125 |
|---|
| Net Debt/EBITDA | -0.1x | 2.2x | 0.0x | -1.7x | -0.5x |
|---|
| |
| ROIC, % | | 17.9% | 43.8% | 23.6% | 14.3% |
|---|
| ROE, % | | 23.2% | 63.9% | 17.5% | 14.2% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the longer period the company showed small growth in EBITDA margin of 0.400 pp from 16% in 2011 to 16.4% in 2014.
We call Goldpac Group Ltd an attractive growth stock as together with the growth it delivers high ROIC at 14.3%. During the last three years it dropped - it was 17.9% in FY2011. It's average level of ROIC for the last three years was 27.2%.
Net Income margin surged on 1.30 pp from 12.7% to 14% in 2014. In the last 3 years Net Income margin surged on 3.20 pp from 10.8% in 2011 to 14% in 2014.
Goldpac Group Ltd operates at ROE of 14.2%. For the last three years the average ROE was 31.8%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.In FY2014 Goldpac Group Ltd had CAPEX/Revenue of 5.88%. CAPEX/Revenue surged on 1.90 pp from 3.98% in 2011 to 5.88% in 2014. Average CAPEX/Revenue for the last three years was 4.94%.
Leverage (Debt)
Having such a fast growth profile Goldpac Group Ltd keeps negative net debt at -0.5x Net Debt/EBITDA. In the last 3 years leverage dropped on 2.73x from 2.23x in 2011 to -0.50x in 2014.
Peers in Commercial Services
Below we provide Goldpac Group Ltd benchmarking against other companies in Commercial Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Global Energy Resources International Group Ltd ($8192) | | 429.3% | -61.9% | -27.8% | 2,912.9% |
| Dingyi Group Investment Ltd ($508) | | -72.6% | 8.8% | -95.9% | 1,361.2% |
| China Smartpay Group Holdings Ltd ($8325) | | 13.1% | 60.0% | 274.7% | 75.6% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 63.1% | 21.3% | 4.5% | 33.5% |
| Fu Shou Yuan International Group Ltd ($1448) | | 20.2% | 13.9% | 27.5% | 30.0% |
| |
|---|
| Median (23 companies) | | 13.5% | 9.4% | 4.0% | 12.7% |
|---|
| Goldpac Group Ltd ($3315) | | 24.4% | 52.3% | 64.4% | 36.8% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 80.7% | 81.6% | 80.5% | 80.4% | 80.0% |
| China Communication Telecom Services Co Ltd ($8206) | | -56.6% | 61.6% | 58.6% | 69.1% |
| Dingyi Group Investment Ltd ($508) | 84.3% | 76.5% | 75.8% | | 64.5% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 61.6% | 67.1% | 66.2% | 66.8% | 62.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 55.9% | 49.4% | 55.4% | 53.4% | 49.5% |
| |
|---|
| Median (20 companies) | 28.4% | 31.4% | 29.0% | 29.1% | 30.2% |
|---|
| Goldpac Group Ltd ($3315) | 35.6% | 32.9% | 30.1% | 29.1% | 27.5% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.0% | 74.3% | 78.3% | 74.5% | 74.0% |
| Fu Shou Yuan International Group Ltd ($1448) | 45.9% | 46.3% | 43.6% | 51.6% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 41.8% | 38.7% | 46.2% | 40.2% | 38.5% |
| Brilliant Circle Holdings International Ltd ($1008) | 25.5% | 26.9% | 27.0% | 31.8% | 32.3% |
| Anxian Yuan China Holdings Ltd ($922) | -358.8% | -6.0% | -26.1% | 25.2% | 17.5% |
| |
|---|
| Median (23 companies) | -1.9% | 1.8% | 1.9% | 2.3% | -2.2% |
|---|
| Goldpac Group Ltd ($3315) | 22.0% | 16.0% | 22.3% | 19.9% | 16.4% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Finet Group Ltd ($8317) | 0.8% | 3.9% | 10.3% | 9.1% | 26.0% |
| Fu Shou Yuan International Group Ltd ($1448) | 9.9% | 1.9% | 4.9% | 12.2% | 9.7% |
| Brilliant Circle Holdings International Ltd ($1008) | 4.9% | 1.5% | 5.4% | 8.5% | 8.4% |
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | 1.0% | 0.9% | 2.7% | 10.3% | 8.4% |
| Global Energy Resources International Group Ltd ($8192) | 20.6% | 5.9% | 0.2% | 0.0% | 7.0% |
| |
|---|
| Median (23 companies) | 2.7% | 2.5% | 3.0% | 2.6% | 2.4% |
|---|
| Goldpac Group Ltd ($3315) | 4.5% | 4.0% | 4.5% | 4.5% | 5.9% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 167.2% | 136.8% | 51.5% | 26.6% | 30.0% |
| 1010 Printing Group Ltd ($1127) | 16.4% | 14.4% | 13.5% | 20.8% | 17.8% |
| Pico Far East Holdings Ltd ($752) | 16.5% | 18.8% | 16.7% | 12.3% | 14.3% |
| Linmark Group Ltd ($915) | 7.4% | 5.0% | 7.5% | 12.6% | 13.1% |
| Fu Shou Yuan International Group Ltd ($1448) | | 44.7% | 36.8% | 22.8% | 13.0% |
| |
|---|
| Median (23 companies) | -7.3% | -2.3% | -2.8% | 0.1% | -2.5% |
|---|
| Goldpac Group Ltd ($3315) | | 17.9% | 43.8% | 23.6% | 14.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Anxian Yuan China Holdings Ltd ($922) | | | | 4.6x | 3.8x |
| Beijing Jingcheng Machinery Electric Co Ltd ($187) | | 5.0x | 9.3x | 3.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | -0.1x | 2.9x | 4.5x | 3.1x | 2.7x |
| Brilliant Circle Holdings International Ltd ($1008) | 0.5x | 0.6x | 0.7x | 1.2x | 0.8x |
| 1010 Printing Group Ltd ($1127) | 1.0x | 0.5x | 0.5x | -0.3x | -0.2x |
| |
|---|
| Median (13 companies) | -0.3x | 0.2x | -0.2x | -2.1x | -1.4x |
|---|
| Goldpac Group Ltd ($3315) | -0.1x | 2.2x | 0.0x | -1.7x | -0.5x |
