The growth of China U-Ton Holdings Ltd is hard to miss
06/04/2015 • About China U-Ton Holdings Ltd (
$6168) • By InTwits
Have you thought about China U-Ton Holdings Ltd as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
China U-Ton Holdings Ltd showed growth in the last financial year. The company's revenue surged on 35.4% in FY2014. The growth also happened in EBITDA of -3.63% for the same period.
In the longer period China U-Ton Holdings Ltd showed fast revenue growth of 46.8% from 2011 to 2014 annualy. EBITDA surged on 16.4% from 2011 to 2014 annualy.
China U-Ton Holdings Ltd ($6168) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 52 | 162 | 246 | 378 | 511 |
|---|
| Revenue growth, % | | 213.8% | 52.3% | 53.3% | 35.4% |
|---|
| Gross margin, % | 45.3% | 46.4% | 44.4% | 39.1% | 31.7% |
|---|
| SG&A, % | | | 9.35% | 10.6% | 11.5% |
|---|
| EBITDA | 18 | 66 | 88 | 107 | 103 |
|---|
| EBITDA growth, % | | 272.0% | 33.7% | 22.3% | -3.6% |
|---|
| EBITDA margin, % | 34.2% | 40.6% | 35.6% | 28.4% | 20.2% |
|---|
| Net Income | -1 | 55 | 66 | 85 | 75 |
|---|
| Net Income margin, % | -2.47% | 34.2% | 26.7% | 22.6% | 14.6% |
|---|
| |
| CAPEX | 2 | 2 | 8 | 11 | 10 |
|---|
| CAPEX/Revenue, % | 3.03% | 1.18% | 3.18% | 2.98% | 2.01% |
|---|
| Debt | 21 | 11 | 41 | 51 | 135 |
|---|
| Cash | 47 | 44 | 130 | 162 | 168 |
|---|
| Net Debt/EBITDA | -1.5x | -0.5x | -1.0x | -1.0x | -0.3x |
|---|
| |
| ROIC, % | | 69.5% | 35.7% | 25.0% | 16.2% |
|---|
| ROE, % | | 75.8% | 31.7% | 24.7% | 15.9% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. If we look for the longer period the company showed big decline in EBITDA margin of 20.4 pp from 40.6% in 2011 to 20.2% in 2014.
We call China U-Ton Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 16.2%. During the last three years it dropped - it was 69.5% in FY2011. For the last three years the average ROIC was 25.6%.
The company showed big decline in Net Income margin of 8 pp from 22.6% to 14.6% in 2014. If we look for the longer period China U-Ton Holdings Ltd showed big decline in Net Income margin of 19.6 pp from 34.2% in 2011 to 14.6% in 2014.
China U-Ton Holdings Ltd operates at ROE of 15.9%. For the last three years the average ROE was 24.1%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.01% in FY2014. CAPEX/Revenue surged on 0.832 pp from 1.18% in 2011 to 2.01% in 2014. It's average level of CAPEX/Revenue for the last three years was 2.72%.
Leverage (Debt)
China U-Ton Holdings Ltd has negative net debt at -0.3x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company showed fast leverage growth of 0.19x from -0.50x in 2011 to -0.31x in 2014.
Peers in Telecommunications
Below you can find China U-Ton Holdings Ltd benchmarking vs. other companies in Telecommunications 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 |
|---|
| China Energine International Holdings Ltd ($1185) | | -41.8% | 143.6% | 34.3% | 103.1% |
| MOBI Development Co Ltd ($947) | | -23.4% | -13.8% | 29.1% | 85.6% |
| Vodatel Networks Holdings Ltd ($8033) | | 34.4% | -5.9% | -4.6% | 81.7% |
| Gold Tat Group International Ltd ($8266) | | 34.7% | 29.4% | 1,582.2% | 77.0% |
| Great World Co Holdings Ltd ($8003) | | -99.1% | 1,651.8% | -81.7% | 61.9% |
| |
|---|
| Median (42 companies) | | 7.9% | 11.4% | 8.3% | 8.3% |
|---|
| China U-Ton Holdings Ltd ($6168) | | 213.8% | 52.3% | 53.3% | 35.4% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Synertone Communication Corp ($1613) | 59.2% | 65.4% | 68.1% | 64.1% | 70.5% |
| Zhi Cheng Holdings Ltd ($8130) | 29.1% | 61.6% | 45.9% | 41.0% | 64.0% |
| APT Satellite Holdings Ltd ($1045) | 48.7% | 52.3% | 58.7% | 64.1% | 62.5% |
| Hong Kong Television Network Ltd ($1137) | 87.6% | | -59.6% | -101.3% | 59.7% |
| Cisco Systems Inc ($4333) | 64.0% | 61.4% | 61.2% | 60.6% | 58.9% |
| |
|---|
| Median (36 companies) | 26.8% | 31.8% | 22.1% | 27.2% | 28.1% |
|---|
| China U-Ton Holdings Ltd ($6168) | 45.3% | 46.4% | 44.4% | 39.1% | 31.7% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 78.5% | 83.5% | 86.5% | 85.8% | 81.6% |
| APT Satellite Holdings Ltd ($1045) | 83.3% | 76.7% | 81.0% | 78.9% | 77.5% |
| Synertone Communication Corp ($1613) | 44.9% | 49.5% | 44.9% | 48.5% | 49.4% |
| PCCW Ltd ($8) | 37.3% | 31.4% | 32.0% | 31.9% | 39.2% |
| China Mobile Ltd ($941) | 48.9% | 47.1% | 43.7% | 38.2% | 36.9% |
| |
|---|
| Median (42 companies) | 12.9% | 14.0% | 11.1% | 6.8% | 8.4% |
|---|
| China U-Ton Holdings Ltd ($6168) | 34.2% | 40.6% | 35.6% | 28.4% | 20.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Hong Kong Television Network Ltd ($1137) | 22.2% | | 12,435.9% | 504.9% | 1,283.5% |
| Asia Satellite Telecommunications Holdings Ltd ($1135) | 41.3% | 61.8% | 93.8% | 71.7% | 75.0% |
| Hanny Holdings Ltd ($275) | 2.8% | 80.8% | 19.8% | 11.6% | 28.3% |
| APT Satellite Holdings Ltd ($1045) | 161.8% | 155.2% | 74.3% | 2.5% | 27.2% |
| China Electronics Corp Holdings Co Ltd ($85) | 2.2% | 1.5% | 1.8% | 8.3% | 27.1% |
| |
|---|
| Median (42 companies) | 3.5% | 4.5% | 2.5% | 4.5% | 5.2% |
|---|
| China U-Ton Holdings Ltd ($6168) | 3.0% | 1.2% | 3.2% | 3.0% | 2.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| VTech Holdings Ltd ($303) | 46.3% | 40.5% | 37.6% | 39.5% | 40.0% |
| TCL Communication Technology Holdings Ltd ($2618) | 10.8% | 6.4% | -1.6% | 6.0% | 17.2% |
| China Fiber Optic Network System Group Ltd ($3777) | 25.6% | 23.1% | 18.8% | 17.6% | 16.6% |
| ETS Group Ltd ($8031) | 27.1% | 41.8% | 21.5% | 31.9% | 14.5% |
| China Mobile Ltd ($941) | 26.2% | 23.5% | 21.4% | 17.6% | 14.0% |
| |
|---|
| Median (42 companies) | 11.1% | 6.9% | 5.2% | 6.0% | 7.2% |
|---|
| China U-Ton Holdings Ltd ($6168) | | 69.5% | 35.7% | 25.0% | 16.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Energine International Holdings Ltd ($1185) | | | | | 13.3x |
| China Electronics Corp Holdings Co Ltd ($85) | -3.2x | -2.1x | -2.0x | -1.3x | 12.5x |
| Synertone Communication Corp ($1613) | 0.2x | -0.3x | -0.4x | -2.2x | 4.8x |
| CITIC Telecom International Holdings Ltd ($1883) | -0.5x | -0.3x | -0.2x | 3.5x | 3.4x |
| HKT Trust & HKT Ltd ($6823) | 4.0x | 2.9x | 2.8x | 2.7x | 3.2x |
| |
|---|
| Median (30 companies) | 0.0x | -0.1x | -0.2x | -0.0x | 0.7x |
|---|
| China U-Ton Holdings Ltd ($6168) | -1.5x | -0.5x | -1.0x | -1.0x | -0.3x |
