The growth of China Singyes Solar Technologies Holdings Ltd is hard to miss
07/04/2015 • About China Singyes Solar Technologies Holdings Ltd (
$750) • By InTwits
China Singyes Solar Technologies Holdings Ltd is an attractive growth stock in Building Materials industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
China Singyes Solar Technologies Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 20.7% in FY2014. At the same time the company well managed its profitability and also showed EBITDA growth of 14.3% for the same period.
In the last 3 years the company showed fast revenue growth of 27.7% from 2011 to 2014 annualy. EBITDA surged on 28.3% from 2011 to 2014 annualy.
China Singyes Solar Technologies Holdings Ltd ($750) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 1,782 | 2,406 | 3,098 | 4,151 | 5,011 |
|---|
| Revenue growth, % | | 35.0% | 28.7% | 34.0% | 20.7% |
|---|
| Gross margin, % | 24.5% | 24.1% | 24.2% | 23.8% | 20.9% |
|---|
| SG&A, % | 8.03% | 8.68% | 8.34% | 7.10% | 7.18% |
|---|
| EBITDA | 309 | 432 | 560 | 800 | 914 |
|---|
| EBITDA growth, % | | 40.2% | 29.4% | 43.0% | 14.3% |
|---|
| EBITDA margin, % | 17.3% | 18.0% | 18.1% | 19.3% | 18.2% |
|---|
| Net Income | 216 | 291 | 329 | 491 | 584 |
|---|
| Net Income margin, % | 12.1% | 12.1% | 10.6% | 11.8% | 11.7% |
|---|
| |
| CAPEX | 224 | 973 | 368 | 1,332 | 1,184 |
|---|
| CAPEX/Revenue, % | 12.6% | 40.4% | 11.9% | 32.1% | 23.6% |
|---|
| Debt | 477 | 666 | 1,206 | 1,551 | 2,511 |
|---|
| Cash | 414 | 315 | 698 | 895 | 901 |
|---|
| Net Debt/EBITDA | 0.2x | 0.8x | 0.9x | 0.8x | 1.8x |
|---|
| |
| ROIC, % | 23.1% | 21.1% | 18.6% | 19.9% | 16.0% |
|---|
| ROE, % | 23.2% | 22.7% | 19.5% | 22.1% | 20.4% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. If we look for the longer period the company showed small growth in EBITDA margin of 0.200 pp from 18% in 2011 to 18.2% in 2014.
We call China Singyes Solar Technologies Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 16.0%. Three years ago it was higher at 21.1%. It's average ROIC for the last three years was 18.2%.
Net Income margin decreased slightly on 0.1000 pp from 11.8% to 11.7% in 2014. In the longer period Net Income margin decreased slightly on 0.400 pp from 12.1% in 2011 to 11.7% in 2014.
China Singyes Solar Technologies Holdings Ltd operates at ROE of 20.4%. It's average level of ROE for the last three years was 20.7%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.China Singyes Solar Technologies Holdings Ltd's CAPEX/Revenue was 23.6% in FY2014. The company's CAPEX/Revenue dropped on 16.8 pp from 40.4% in 2011 to 23.6% in 2014. It's average CAPEX/Revenue for the last three years was 22.5%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 1.8x Net Debt/EBITDA. In the last 3 years leverage surged on 0.95x from 0.81x in 2011 to 1.76x in 2014.
Peers in Building Materials
Below you can find China Singyes Solar Technologies Holdings Ltd benchmarking vs. other companies in Building Materials 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 |
|---|
| Summit Ascent Holdings Ltd ($102) | | -18.8% | -86.4% | -19.6% | 177.1% |
| Pacific Plywood Hldg Ltd ($767) | | | -34.9% | -14.5% | 119.5% |
| Luoyang Glass Co Ltd ($1108) | | -21.4% | -40.3% | -32.3% | 76.2% |
| Prosperity International Holdings HK Ltd ($803) | | 217.3% | -23.9% | -43.3% | 55.2% |
| Far East Global Group Ltd ($830) | | -2.2% | 52.9% | 9.5% | 18.6% |
| |
|---|
| Median (23 companies) | | 33.2% | -4.2% | 9.5% | 4.3% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | | 35.0% | 28.7% | 34.0% | 20.7% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Pacific Plywood Hldg Ltd ($767) | | 95.0% | 91.4% | 82.0% | 97.2% |
| Dongpeng Holdings Co Ltd ($3386) | 20.6% | 28.7% | 35.6% | 37.1% | 38.5% |
| Luks Group Vietnam Holdings Co Ltd ($366) | 34.6% | 37.6% | 37.2% | 36.9% | 37.0% |
| Anhui Conch Cement Co Ltd ($914) | 31.7% | 39.4% | 27.3% | 32.5% | 33.2% |
| China Resources Cement Holdings Ltd ($1313) | 31.6% | 31.1% | 24.1% | 28.5% | 31.3% |
| |
|---|
| Median (23 companies) | 21.5% | 26.3% | 19.5% | 21.9% | 20.7% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 24.5% | 24.1% | 24.2% | 23.8% | 20.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Pacific Plywood Hldg Ltd ($767) | | 53.6% | 12.6% | -19.8% | 50.5% |
| Anhui Conch Cement Co Ltd ($914) | 30.7% | 38.8% | 27.1% | 31.1% | 32.1% |
| TCC International Holdings Ltd ($1136) | 20.4% | 26.5% | 19.2% | 26.1% | 29.0% |
| Asia Cement China Holdings Corp ($743) | 23.9% | 30.3% | 20.6% | 24.9% | 27.0% |
| China Tianrui Group Cement Co Ltd ($1252) | 20.0% | 32.4% | 28.5% | 23.7% | 26.7% |
| |
|---|
| Median (23 companies) | 20.0% | 18.6% | 14.3% | 16.6% | 16.5% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 17.3% | 18.0% | 18.1% | 19.3% | 18.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| West China Cement Ltd ($2233) | 47.3% | 54.8% | 17.2% | 13.9% | 15.9% |
| China Glass Holdings Ltd ($3300) | 10.9% | 37.2% | 19.6% | 12.5% | 12.4% |
| China Shanshui Cement Group Ltd ($691) | 17.1% | 13.5% | 18.9% | 21.1% | 12.1% |
| China Lesso Group Holdings Ltd ($2128) | 7.4% | 12.0% | 13.6% | 9.1% | 11.8% |
| Anhui Conch Cement Co Ltd ($914) | 25.9% | 16.1% | 14.7% | 12.3% | 11.1% |
| |
|---|
| Median (23 companies) | 11.4% | 5.7% | 9.5% | 8.0% | 5.5% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 12.6% | 40.4% | 11.9% | 32.1% | 23.6% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | | 49.7% | 37.1% | 35.8% | 27.2% |
| Anhui Conch Cement Co Ltd ($914) | 19.3% | 27.2% | 12.7% | 17.5% | 18.4% |
| China Lesso Group Holdings Ltd ($2128) | 38.3% | 26.8% | 20.5% | 19.4% | 18.2% |
| China Resources Cement Holdings Ltd ($1313) | 9.5% | 14.0% | 8.0% | 9.6% | 13.0% |
| TCC International Holdings Ltd ($1136) | 5.3% | 8.0% | 3.6% | 7.2% | 8.9% |
| |
|---|
| Median (23 companies) | 10.1% | 12.1% | 4.1% | 6.8% | 4.0% |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 23.1% | 21.1% | 18.6% | 19.9% | 16.0% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sustainable Forest Holdings Ltd ($723) | 2.0x | 0.9x | | | 9.6x |
| China National Building Material Co Ltd ($3323) | 5.0x | 3.9x | 6.7x | 6.8x | 6.3x |
| BBMG Corp ($2009) | 3.0x | 4.4x | 4.6x | 5.0x | 6.1x |
| China Tianrui Group Cement Co Ltd ($1252) | 4.9x | 3.0x | 4.2x | 5.1x | 5.2x |
| China Shanshui Cement Group Ltd ($691) | 2.4x | 1.8x | 3.0x | 4.1x | 4.8x |
| |
|---|
| Median (19 companies) | 1.4x | 0.9x | 3.1x | 2.8x | 2.0x |
|---|
| China Singyes Solar Technologies Holdings Ltd ($750) | 0.2x | 0.8x | 0.9x | 0.8x | 1.8x |
