Looking for fundamental growth story? Pay attention to Cabbeen Fashion Ltd
10/02/2016 • About Cabbeen Fashion Ltd (
$2030) • By InTwits
Pay attention to Cabbeen Fashion 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
Cabbeen Fashion Ltd showed fast growth in the last financial year. Cabbeen Fashion Ltd's revenue surged on 23.5% in FY2015. Together with revenue growth Cabbeen Fashion Ltd also managed to keep EBITDA growth. EBITDA grew 26.0% for the same period.
In the longer period the company showed fast revenue growth of 13.0% from 2012 to 2015 annualy. EBITDA surged on 18.6% from 2012 to 2015 annualy.
Cabbeen Fashion Ltd ($2030) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 890 | 940 | 943 | 1,098 | 1,356 |
|---|
| Revenue growth, % | | 5.6% | 0.4% | 16.4% | 23.5% |
|---|
| Gross margin, % | 31.9% | 40.5% | 41.3% | 42.1% | 46.2% |
|---|
| SG&A, % | 10.1% | 11.8% | 11.4% | 11.0% | 21.3% |
|---|
| EBITDA | 143 | 235 | 280 | 312 | 393 |
|---|
| EBITDA growth, % | | 64.8% | 19.0% | 11.3% | 26.0% |
|---|
| EBITDA margin, % | 16.0% | 25.0% | 29.7% | 28.4% | 29.0% |
|---|
| Net Income | 78 | 130 | 195 | 236 | 288 |
|---|
| Net Income margin, % | 8.76% | 13.9% | 20.7% | 21.4% | 21.2% |
|---|
| |
| CAPEX | 15 | 2 | 5 | 9 | 26 |
|---|
| CAPEX/Revenue, % | 1.63% | 0.235% | 0.522% | 0.777% | 1.93% |
|---|
| Debt | 681 | 428 | 434 | 489 | 682 |
|---|
| Cash | 62 | 186 | 532 | 324 | 295 |
|---|
| Net Debt/EBITDA | 4.3x | 1.0x | -0.3x | 0.5x | 1.0x |
|---|
| |
| ROIC, % | 25.7% | 32.3% | 32.9% | 26.5% | 27.0% |
|---|
| ROE, % | 102.5% | 107.3% | 53.6% | 35.7% | 35.6% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin increased slightly on 0.600 pp from 28.4% to 29% in 2015. In the last 3 years the company's EBITDA margin surged on 4 pp from 25% in 2012 to 29% in 2015.
Cabbeen Fashion Ltd shows attractive ROIC at 27.0% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 32.3% in FY2012. It's average ROIC for the last three years was 28.8%.
The company showed small Net Income margin decline of 0.200 pp from 21.4% to 21.2% in 2015. If we look for the longer period Net Income margin surged on 7.30 pp from 13.9% in 2012 to 21.2% in 2015.
Cabbeen Fashion Ltd operates at ROE of 35.6%. It's average level of ROE for the last three years was 41.6%.
Capital expenditures (CAPEX)
In FY2015 Cabbeen Fashion Ltd had CAPEX/Revenue of 1.93%. The company's CAPEX/Revenue surged on 1.69 pp from 0.235% in 2012 to 1.93% in 2015. It's average CAPEX/Revenue for the last three years was 1.08%.
Leverage (Debt)
Cabbeen Fashion Ltd has low debt level at 1.0x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage decreased slightly on 0.04x from 1.03x in 2012 to 0.99x in 2015.
Peers in Apparel
Below we provide Cabbeen Fashion Ltd benchmarking against other companies in Apparel 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 |
|---|
| Ares Asia Ltd ($645) | | | | 144.2% | 14.7% |
| Texhong Textile Group Ltd ($2678) | 25.6% | 6.8% | 12.1% | 27.2% | |
| Win Hanverky Holdings Ltd ($3322) | 11.5% | -7.5% | -0.3% | 21.1% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | 27.3% | -94.0% | 46.8% | 20.4% | |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| |
|---|
| Median (46 companies) | 25.6% | 5.1% | 1.0% | 4.2% | -3.8% |
|---|
| Cabbeen Fashion Ltd ($2030) | | 5.6% | 0.4% | 16.4% | 23.5% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | |
| C.banner International Holdings Ltd ($1028) | 63.5% | 63.3% | 62.0% | 63.4% | |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| |
|---|
| Median (45 companies) | 23.7% | 24.3% | 22.9% | 22.1% | 17.0% |
|---|
| Cabbeen Fashion Ltd ($2030) | 31.9% | 40.5% | 41.3% | 42.1% | 46.2% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | |
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | |
| China Outfitters Holdings Ltd ($1146) | 43.9% | 42.0% | 38.2% | 26.5% | |
| |
|---|
| Median (46 companies) | 10.1% | 10.0% | 8.7% | 5.5% | 0.6% |
|---|
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | 29.0% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | |
| Mascotte Holdings Ltd ($136) | 0.4% | 74.2% | 45.0% | 12.2% | 0.6% |
| Addchance Holdings Ltd ($3344) | 12.2% | 8.6% | 9.3% | 10.9% | |
| Active Group Holdings Ltd ($1096) | 1.3% | 17.4% | 3.5% | 10.7% | |
| |
|---|
| Median (46 companies) | 2.2% | 2.2% | 3.3% | 2.3% | 1.4% |
|---|
| Cabbeen Fashion Ltd ($2030) | 1.6% | 0.2% | 0.5% | 0.8% | 1.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | 22.0% |
| HOSA International Ltd ($2200) | 44.2% | 34.6% | 32.0% | 28.2% | |
| Miko International Holdings Ltd ($1247) | 75.1% | 60.9% | 48.8% | 27.3% | |
| Fuguiniao Co Ltd ($1819) | 27.8% | 34.1% | 31.6% | 22.9% | |
| |
|---|
| Median (46 companies) | 11.5% | 8.6% | 6.7% | 3.0% | -0.7% |
|---|
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | 27.0% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| High Fashion International Ltd ($608) | 4.9x | 16.7x | 27.7x | 11.2x | |
| Citychamp Watch & Jewellery Group Ltd ($256) | -0.9x | 0.6x | 0.4x | 2.6x | |
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | |
| UKF Holdings Ltd ($1468) | 0.9x | 1.2x | -3.2x | 2.4x | 0.4x |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | |
| |
|---|
| Median (32 companies) | -0.9x | -0.3x | -0.7x | -0.4x | -1.9x |
|---|
| Cabbeen Fashion Ltd ($2030) | 4.3x | 1.0x | -0.3x | 0.5x | 1.0x |
