The numbers tell that Aupu Group Holding Co Ltd is a solid growth stock
02/04/2015 • About Aupu Group Holding Co Ltd (
$477) • By InTwits
Aupu Group Holding Co Ltd is a fast-growing stock in Home Furnishings industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Aupu Group Holding Co Ltd showed fast growth in the last financial year. Aupu Group Holding Co Ltd's revenue surged on 26.4% in FY2014. In addition to revenue Aupu Group Holding Co Ltd also keeps delivering EBITDA growth. It was 116% in FY2014
If we look for the longer period the company showed fast revenue growth of 13.4% from 2011 to 2014 annualy. EBITDA surged on 34.3% from 2011 to 2014 annualy.
Aupu Group Holding Co Ltd ($477) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 524 | 538 | 569 | 620 | 784 |
|---|
| Revenue growth, % | | 2.6% | 5.7% | 9.0% | 26.4% |
|---|
| Gross margin, % | 48.3% | 47.1% | 48.6% | 45.0% | 47.8% |
|---|
| SG&A, % | | | 28.7% | 25.6% | 18.5% |
|---|
| EBITDA | 102 | 97 | 87 | 109 | 236 |
|---|
| EBITDA growth, % | | -4.0% | -10.6% | 25.4% | 115.8% |
|---|
| EBITDA margin, % | 19.4% | 18.1% | 15.3% | 17.6% | 30.1% |
|---|
| Net Income | 79 | 73 | 90 | 82 | 170 |
|---|
| Net Income margin, % | 15.1% | 13.6% | 15.8% | 13.2% | 21.7% |
|---|
| |
| CAPEX | 7 | 10 | 8 | 39 | 41 |
|---|
| CAPEX/Revenue, % | 1.25% | 1.93% | 1.48% | 6.31% | 5.25% |
|---|
| Debt | 0 | 83 | 42 | 148 | 173 |
|---|
| Cash | 47 | 32 | 62 | 69 | 42 |
|---|
| Net Debt/EBITDA | -0.5x | 0.5x | -0.2x | 0.7x | 0.6x |
|---|
| |
| ROIC, % | 20.7% | 18.0% | 14.8% | 17.0% | 32.2% |
|---|
| ROE, % | 18.6% | 17.2% | 20.6% | 18.1% | 34.1% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Aupu Group Holding Co Ltd showed fast EBITDA margin growth of 12.5 pp from 17.6% to 30.1% in 2014. In the last 3 years the company showed fast EBITDA margin growth of 12 pp from 18.1% in 2011 to 30.1% in 2014.
We call Aupu Group Holding Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 32.2%. Three years ago it was considerably lower at 18.0%. Average ROIC for the last three years was 21.3%.
Net Income margin surged on 8.50 pp from 13.2% to 21.7% in 2014. In the last 3 years the company showed fast Net Income margin growth of 8.10 pp from 13.6% in 2011 to 21.7% in 2014.
Aupu Group Holding Co Ltd operates at ROE of 34.1%. For the last three years the average ROE was 24.3%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.The company's CAPEX/Revenue was 5.25% in FY2014. The company showed fast CAPEX/Revenue growth of 3.32 pp from 1.93% in 2011 to 5.25% in 2014. It's average level of CAPEX/Revenue for the last three years was 4.35%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.6x Net Debt/EBITDA. In the last 3 years Aupu Group Holding Co Ltd showed leverage growth of 0.03x from 0.52x in 2011 to 0.56x in 2014.
Peers in Home Furnishings
Below you can find Aupu Group Holding Co Ltd benchmarking vs. other companies in Home Furnishings 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 |
|---|
| See Corp Ltd ($491) | | -58.7% | 13.7% | -31.9% | 134.1% |
| BEP International Holdings Ltd ($2326) | | 359.9% | 44.7% | -41.5% | 46.2% |
| Alco Holdings Ltd ($328) | | -23.0% | -10.2% | -32.6% | 22.8% |
| Tonly Electronics Holdings Ltd ($1249) | | 9.0% | -10.4% | 24.0% | 19.0% |
| South East Group Ltd ($726) | | 466.8% | -32.0% | -22.1% | 11.6% |
| |
|---|
| Median (16 companies) | | 22.1% | 4.5% | 2.0% | 4.4% |
|---|
| Aupu Group Holding Co Ltd ($477) | | 2.6% | 5.7% | 9.0% | 26.4% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| South East Group Ltd ($726) | 38.5% | 36.2% | 25.5% | 51.6% | 38.8% |
| Samson Holding Ltd ($531) | 29.8% | 24.9% | 25.6% | 25.4% | 27.3% |
| Gold Peak Industries Holding Ltd ($40) | 28.1% | 26.8% | 25.8% | 23.6% | 24.9% |
| Mastercraft International Holdings Ltd ($8146) | 19.4% | 18.2% | 20.7% | 21.6% | 22.2% |
| See Corp Ltd ($491) | 36.7% | 36.2% | 35.0% | 40.4% | 22.2% |
| |
|---|
| Median (16 companies) | 18.4% | 16.5% | 17.3% | 17.8% | 16.7% |
|---|
| Aupu Group Holding Co Ltd ($477) | 48.3% | 47.1% | 48.6% | 45.0% | 47.8% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| See Corp Ltd ($491) | 21.6% | -58.7% | -38.4% | -59.5% | 32.0% |
| Welling Holding Ltd ($382) | 10.5% | 8.6% | 11.9% | 12.8% | 10.8% |
| Samson Holding Ltd ($531) | 12.2% | 6.2% | 7.5% | 6.6% | 9.4% |
| Mastercraft International Holdings Ltd ($8146) | 8.7% | 7.6% | 7.4% | 8.2% | 8.5% |
| Allan International Holdings ($684) | 14.6% | 10.2% | 8.0% | 7.6% | 7.6% |
| |
|---|
| Median (16 companies) | 6.4% | 6.0% | 4.5% | 4.7% | 4.0% |
|---|
| Aupu Group Holding Co Ltd ($477) | 19.4% | 18.1% | 15.3% | 17.6% | 30.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Alco Holdings Ltd ($328) | 0.9% | 5.1% | 0.8% | 1.4% | 5.2% |
| Skyworth Digital Holdings Ltd ($751) | 1.5% | 2.2% | 3.0% | 2.9% | 4.9% |
| Fujikon Industrial Holdings Ltd ($927) | 3.8% | 1.8% | 1.5% | 2.3% | 3.8% |
| Samson Holding Ltd ($531) | 3.5% | 1.8% | 1.0% | 2.2% | 3.3% |
| Welling Holding Ltd ($382) | 3.9% | 3.9% | 4.3% | 2.3% | 3.0% |
| |
|---|
| Median (16 companies) | 1.5% | 1.3% | 1.1% | 1.8% | 1.6% |
|---|
| Aupu Group Holding Co Ltd ($477) | 1.2% | 1.9% | 1.5% | 6.3% | 5.3% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Mastercraft International Holdings Ltd ($8146) | | 76.2% | 54.4% | 38.6% | 36.4% |
| Welling Holding Ltd ($382) | 34.9% | 29.4% | 23.5% | 24.3% | 18.7% |
| Tonly Electronics Holdings Ltd ($1249) | | 7.0% | 4.2% | 7.1% | 15.9% |
| Skyworth Digital Holdings Ltd ($751) | 16.5% | 11.7% | 11.6% | 13.4% | 10.9% |
| TCL Multimedia Technology Holdings Ltd ($1070) | -8.9% | 9.0% | 12.7% | -0.5% | 7.6% |
| |
|---|
| Median (16 companies) | 6.0% | 6.0% | 6.4% | 5.1% | 5.0% |
|---|
| Aupu Group Holding Co Ltd ($477) | 20.7% | 18.0% | 14.8% | 17.0% | 32.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Gold Peak Industries Holding Ltd ($40) | 43.1x | 5.6x | 10.2x | 3.4x | 3.6x |
| Skyworth Digital Holdings Ltd ($751) | 2.6x | 1.1x | 1.2x | 1.5x | 1.2x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 2.4x | 3.3x | 1.2x | 0.9x | 1.0x |
| TCL Multimedia Technology Holdings Ltd ($1070) | | -0.0x | -0.3x | -2.3x | 0.7x |
| Mastercraft International Holdings Ltd ($8146) | -0.7x | -0.2x | -0.8x | -0.9x | -0.7x |
| |
|---|
| Median (12 companies) | -0.7x | -0.0x | -0.4x | -1.1x | -1.3x |
|---|
| Aupu Group Holding Co Ltd ($477) | -0.5x | 0.5x | -0.2x | 0.7x | 0.6x |
