China Packaging Holdings Development Ltd demonstrates fast growth in fundamentals
30/03/2015 • About China Packaging Holdings Development Ltd (
$1439) • By InTwits
China Packaging Holdings Development Ltd is a growth stock in Commercial Services industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
China Packaging Holdings Development Ltd showed fast growth in the last financial year. The company's revenue surged on 28.3% in FY2014. Together with revenue growth China Packaging Holdings Development Ltd also managed to keep EBITDA growth. EBITDA grew 31.1% for the same period.
In the longer period China Packaging Holdings Development Ltd showed fast revenue growth of 36.3% from 2011 to 2014 annualy. EBITDA surged on 47.4% from 2011 to 2014 annualy.
China Packaging Holdings Development Ltd ($1439) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 133 | 194 | 281 | 383 | 492 |
|---|
| Revenue growth, % | | 45.8% | 44.7% | 36.5% | 28.3% |
|---|
| Gross margin, % | 18.2% | 18.8% | 21.1% | 23.4% | 23.9% |
|---|
| SG&A, % | 7.88% | 8.46% | 8.39% | 9.80% | 9.59% |
|---|
| EBITDA | 18 | 26 | 44 | 65 | 85 |
|---|
| EBITDA growth, % | | 45.3% | 66.3% | 47.0% | 31.1% |
|---|
| EBITDA margin, % | 13.7% | 13.6% | 15.7% | 16.9% | 17.2% |
|---|
| Net Income | 13 | 20 | 34 | 44 | 62 |
|---|
| Net Income margin, % | 9.68% | 10.1% | 12.2% | 11.6% | 12.6% |
|---|
| |
| CAPEX | 5 | 1 | 20 | 46 | 68 |
|---|
| CAPEX/Revenue, % | 3.83% | 0.426% | 7.11% | 12.0% | 13.8% |
|---|
| Debt | 8 | 15 | 16 | 21 | 12 |
|---|
| Cash | 1 | 11 | 26 | 46 | 92 |
|---|
| Net Debt/EBITDA | 0.4x | 0.1x | -0.2x | -0.4x | -1.0x |
|---|
| |
| ROIC, % | | 50.0% | 52.0% | 46.6% | 34.1% |
|---|
| ROE, % | | 58.3% | 56.2% | 40.9% | 29.9% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company's EBITDA margin increased slightly on 0.300 pp from 16.9% to 17.2% in 2014. In the last 3 years China Packaging Holdings Development Ltd's EBITDA margin surged on 3.60 pp from 13.6% in 2011 to 17.2% in 2014.
We call China Packaging Holdings Development Ltd an attractive growth stock as together with the growth it delivers high ROIC at 34.1%. During the last three years it dropped - it was 50.0% in FY2011. Average ROIC for the last three years was 44.2%.
Net Income margin increased on 1 pp from 11.6% to 12.6% in 2014. In the longer period Net Income margin surged on 2.50 pp from 10.1% in 2011 to 12.6% in 2014.
China Packaging Holdings Development Ltd operates at ROE of 29.9%. Average ROE for the last three years was 42.4%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.China Packaging Holdings Development Ltd's CAPEX/Revenue was 13.8% in FY2014. China Packaging Holdings Development Ltd showed fast CAPEX/Revenue growth of 13.4 pp from 0.426% in 2011 to 13.8% in 2014. It's average level of CAPEX/Revenue for the last three years was 11.0%.
Leverage (Debt)
The company has negative net debt at -1.0x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company's leverage dropped on 1.09x from 0.13x in 2011 to -0.95x in 2014.
Peers in Commercial Services
Below you can find China Packaging Holdings Development Ltd benchmarking vs. other companies in Commercial Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% |
| Goldpac Group Ltd ($3315) | | 24.4% | 52.3% | 64.4% | 36.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 63.1% | 21.3% | 4.5% | 33.5% |
| |
|---|
| Median (28 companies) | | 13.1% | 9.3% | 4.3% | 11.5% |
|---|
| China Packaging Holdings Development Ltd ($1439) | | 45.8% | 44.7% | 36.5% | 28.3% |
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% |
| Shenzhen Expressway Co Ltd ($548) | 50.8% | 58.5% | 50.0% | 51.8% | 51.1% |
| |
|---|
| Median (25 companies) | 29.4% | 32.9% | 30.1% | 30.0% | 30.8% |
|---|
| China Packaging Holdings Development Ltd ($1439) | 18.2% | 18.8% | 21.1% | 23.4% | 23.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Shenzhen Expressway Co Ltd ($548) | 72.9% | 80.4% | 74.3% | 79.4% | 76.6% |
| 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% |
| |
|---|
| Median (28 companies) | 4.5% | 2.2% | 3.6% | 4.5% | 2.6% |
|---|
| China Packaging Holdings Development Ltd ($1439) | 13.7% | 13.6% | 15.7% | 16.9% | 17.2% |
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% |
| China Conch Venture Holdings Ltd ($586) | 12.0% | 12.5% | 13.8% | 5.7% | 22.3% |
| Fu Shou Yuan International Group Ltd ($1448) | 9.9% | 1.9% | 4.9% | 12.2% | 9.7% |
| Shenzhen Expressway Co Ltd ($548) | 36.0% | 30.7% | 18.1% | 19.3% | 9.0% |
| Brilliant Circle Holdings International Ltd ($1008) | 4.9% | 1.5% | 5.4% | 8.5% | 8.4% |
| |
|---|
| Median (28 companies) | 4.4% | 2.9% | 3.1% | 3.8% | 2.6% |
|---|
| China Packaging Holdings Development Ltd ($1439) | 3.8% | 0.4% | 7.1% | 12.0% | 13.8% |
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% |
| Goldpac Group Ltd ($3315) | | 17.9% | 43.8% | 23.6% | 14.3% |
| 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% |
| |
|---|
| Median (28 companies) | -3.6% | 0.2% | 0.9% | 1.8% | 0.5% |
|---|
| China Packaging Holdings Development Ltd ($1439) | | 50.0% | 52.0% | 46.6% | 34.1% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Anxian Yuan China Holdings Ltd ($922) | | | | 4.6x | 3.8x |
| Eagle Legend Asia Ltd ($936) | 0.7x | 4.3x | 4.0x | 4.0x | 3.3x |
| Yuexiu Transport Infrastructure Ltd ($1052) | -0.1x | 2.9x | 4.5x | 3.1x | 2.7x |
| Shenzhen Expressway Co Ltd ($548) | 4.6x | 3.9x | 4.0x | 3.3x | 2.6x |
| Brilliant Circle Holdings International Ltd ($1008) | 0.5x | 0.6x | 0.7x | 1.2x | 0.8x |
| |
|---|
| Median (15 companies) | -0.2x | 0.5x | 0.5x | -1.9x | -0.5x |
|---|
| China Packaging Holdings Development Ltd ($1439) | 0.4x | 0.1x | -0.2x | -0.4x | -1.0x |
