Chun Sing Engineering Holdings Ltd is an attractive growth stock
30/06/2015 • About Chun Sing Engineering Holdings Ltd (
$2277) • By InTwits
Have you thought about Chun Sing Engineering 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
Chun Sing Engineering Holdings Ltd showed growth in the last financial year. The company's revenue surged on 39.0% in FY2015. Together with revenue growth Chun Sing Engineering Holdings Ltd also managed to keep EBITDA growth. EBITDA grew 25.4% for the same period.
In the last 3 years the company showed fast revenue growth of 59.3% from FY2012 to FY2015 annualy. EBITDA surged on 158% from FY2012 to FY2015 annualy.
Chun Sing Engineering Holdings Ltd ($2277) financials for the last 5 years
| mln. | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 0 | 200 | 452 | 581 | 808 |
|---|
| Revenue growth, % | | -100.0% | 126.4% | 28.6% | 39.0% |
|---|
| Gross margin, % | | 5.42% | 15.1% | 14.5% | 15.6% |
|---|
| SG&A, % | | 6.06% | 3.34% | 3.09% | 5.47% |
|---|
| EBITDA | 0 | 6 | 65 | 84 | 106 |
|---|
| EBITDA growth, % | | -100.0% | 944.4% | 30.7% | 25.4% |
|---|
| EBITDA margin, % | | 3.10% | 14.3% | 14.5% | 13.1% |
|---|
| Net Income | 0 | -0 | 44 | 57 | 66 |
|---|
| Net Income margin, % | | -0.228% | 9.82% | 9.77% | 8.14% |
|---|
| |
| CAPEX | 0 | 18 | 29 | 39 | 40 |
|---|
| CAPEX/Revenue, % | | 8.76% | 6.42% | 6.76% | 4.89% |
|---|
| Debt | 0 | 15 | 18 | 36 | 21 |
|---|
| Cash | 0 | 9 | 7 | 9 | 118 |
|---|
| Net Debt/EBITDA | | 1.0x | 0.2x | 0.3x | -0.9x |
|---|
| |
| ROIC, % | | | 98.3% | 54.9% | 43.7% |
|---|
| ROE, % | | | 131.8% | 67.4% | 44.5% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 14.5% in FY2014 to 13.1% in FY2015. If we look for the longer period EBITDA margin surged on 10 pp from 3.10% in FY2012 to 13.1% in FY2015.
Chun Sing Engineering Holdings Ltd shows attractive ROIC at 43.7% for the last 12 months which assumes stable development model. During the last three years it surged - it was in FY2012. Average ROIC for the last three years was 65.6%.
Chun Sing Engineering Holdings Ltd's Net Income margin dropped on 1.70 pp from 9.80% to 8.10% in FY2015. In the last 3 years Net Income margin surged on 8.30 pp from -0.200% in FY2012 to 8.10% in FY2015.
Chun Sing Engineering Holdings Ltd operates at ROE of 44.5%. It's average ROE for the last three years was 81.2%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 4.89% in FY2015. Chun Sing Engineering Holdings Ltd showed big decline in CAPEX/Revenue of 3.87 pp from 8.76% in FY2012 to 4.89% in FY2015. It's average CAPEX/Revenue for the last three years was 6.02%.
Leverage (Debt)
The company has negative net debt at -0.9x Net Debt/EBITDA - at the same time with high growth. In the last 3 years Chun Sing Engineering Holdings Ltd's leverage dropped on 1.92x from 1.01x in FY2012 to -0.91x in FY2015.
Peers in Engineering&Construction
Below we provide Chun Sing Engineering Holdings Ltd benchmarking against other companies in Engineering&Construction 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (39 companies) | 12.5% | 9.7% | 20.8% | 10.8% | -2.5% |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 126.4% | 28.6% | 39.0% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| China Saite Group Co Ltd ($153) | 29.4% | 32.1% | 33.7% | 29.8% | |
| |
|---|
| Median (34 companies) | 11.0% | 11.7% | 11.6% | 11.6% | 7.0% |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | 5.4% | 15.1% | 14.5% | 15.6% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (40 companies) | 8.5% | 8.7% | 6.9% | 5.6% | 2.6% |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | 3.1% | 14.3% | 14.5% | 13.1% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | |
| |
|---|
| Median (40 companies) | 4.4% | 2.4% | 2.6% | 1.7% | 2.4% |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | 8.8% | 6.4% | 6.8% | 4.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| Excel Development Holdings Ltd ($1372) | | 33.1% | 27.2% | 16.4% | 8.6% |
| China Machinery Engineering Corp ($1829) | 35.5% | 24.9% | 20.4% | 16.0% | |
| Tysan Holdings Ltd ($687) | 16.1% | 4.1% | 10.6% | 14.0% | 21.0% |
| |
|---|
| Median (41 companies) | 6.9% | 5.5% | 5.0% | 3.4% | 0.3% |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | 47.0x |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (33 companies) | 0.8x | 1.8x | 3.1x | 3.0x | 7.6x |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | 1.0x | 0.2x | 0.3x | -0.9x |
