ANTA Sports Products Ltd demonstrated fast growth in recent years. Will the growth continue?
01/03/2016 • About ANTA Sports Products Ltd (
$2020) • By InTwits
ANTA Sports Products Ltd is a growth stock in Retail industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
ANTA Sports Products Ltd showed fast growth in the last financial year. The company's revenue surged on 24.7% in FY2015. EBITDA also increased considerably: 32.4% for the same period.
In the longer period the company showed fast revenue growth of 13.4% from 2012 to 2015 annualy. EBITDA surged on 19.9% from 2012 to 2015 annualy.
ANTA Sports Products Ltd ($2020) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 8,905 | 7,623 | 7,281 | 8,923 | 11,126 |
|---|
| Revenue growth, % | | -14.4% | -4.5% | 22.5% | 24.7% |
|---|
| Gross margin, % | 42.3% | 38.0% | 41.7% | 45.1% | 46.6% |
|---|
| SG&A, % | 20.5% | 19.1% | 21.6% | 23.5% | 24.4% |
|---|
| EBITDA | 2,101 | 1,673 | 1,696 | 2,178 | 2,885 |
|---|
| EBITDA growth, % | | -20.4% | 1.4% | 28.4% | 32.4% |
|---|
| EBITDA margin, % | 23.6% | 21.9% | 23.3% | 24.4% | 25.9% |
|---|
| Net Income | 1,730 | 1,359 | 1,315 | 1,700 | 2,041 |
|---|
| Net Income margin, % | 19.4% | 17.8% | 18.1% | 19.1% | 18.3% |
|---|
| |
| CAPEX | 181 | 214 | 175 | 254 | 458 |
|---|
| CAPEX/Revenue, % | 2.03% | 2.81% | 2.40% | 2.84% | 4.12% |
|---|
| Debt | 39 | 1,035 | 527 | 1,385 | 1,369 |
|---|
| Cash | 3,018 | 4,008 | 4,344 | 4,934 | 5,166 |
|---|
| Net Debt/EBITDA | -1.4x | -1.8x | -2.3x | -1.6x | -1.3x |
|---|
| |
| ROIC, % | 31.9% | 21.1% | 19.2% | 22.8% | 27.0% |
|---|
| ROE, % | 28.7% | 20.7% | 18.9% | 22.7% | 24.9% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. ANTA Sports Products Ltd's EBITDA margin increased on 1.50 pp from 24.4% to 25.9% in 2015. In the longer period the company showed fast EBITDA margin growth of 4 pp from 21.9% in 2012 to 25.9% in 2015.
We call ANTA Sports Products Ltd an attractive growth stock as together with the growth it delivers high ROIC at 27.0%. Three years ago it was lower at 21.1%. It's average level of ROIC for the last three years was 23.0%.
ANTA Sports Products Ltd showed small Net Income margin decline of 0.800 pp from 19.1% to 18.3% in 2015. In the last 3 years the company showed small growth in Net Income margin of 0.500 pp from 17.8% in 2012 to 18.3% in 2015.
ANTA Sports Products Ltd operates at ROE of 24.9%. It's average level of ROE for the last three years was 22.2%.
Capital expenditures (CAPEX)
In FY2015 ANTA Sports Products Ltd had CAPEX/Revenue of 4.12%. The company showed fast CAPEX/Revenue growth of 1.31 pp from 2.81% in 2012 to 4.12% in 2015. For the last three years the average CAPEX/Revenue was 3.12%.
Leverage (Debt)
Having such a fast growth profile ANTA Sports Products Ltd keeps negative net debt at -1.3x Net Debt/EBITDA. In the longer period leverage surged on 0.46x from -1.78x in 2012 to -1.32x in 2015.
Peers in Retail
Below we provide ANTA Sports Products Ltd benchmarking against other companies in Retail 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 |
|---|
| China Household Holdings Ltd ($692) | -87.0% | -32.8% | 5,357.9% | 76.2% | |
| Ming Fung Jewellery Group Ltd ($860) | | 3.3% | -14.9% | 54.3% | -70.8% |
| Merry Garden Holdings Ltd ($1237) | 53.9% | 37.1% | 12.8% | 47.6% | |
| Luk Fook Holdings International Ltd ($590) | | 47.2% | 12.6% | 43.3% | -17.1% |
| NewOcean Energy Holdings Ltd ($342) | 19.3% | 23.1% | 15.9% | 36.0% | |
| |
|---|
| Median (109 companies) | 23.5% | 10.3% | 6.0% | 2.8% | -5.5% |
|---|
| ANTA Sports Products Ltd ($2020) | | -14.4% | -4.5% | 22.5% | 24.7% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Culture Landmark Investment Ltd ($674) | 77.5% | 91.1% | 99.4% | 99.5% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | |
| |
|---|
| Median (98 companies) | 39.4% | 37.2% | 36.4% | 35.1% | 44.9% |
|---|
| ANTA Sports Products Ltd ($2020) | 42.3% | 38.0% | 41.7% | 45.1% | 46.6% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | |
| |
|---|
| Median (109 companies) | 13.1% | 9.6% | 7.1% | 7.9% | 6.5% |
|---|
| ANTA Sports Products Ltd ($2020) | 23.6% | 21.9% | 23.3% | 24.4% | 25.9% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Intime Retail Group Co Ltd ($1833) | 58.4% | 28.3% | 55.4% | 37.0% | |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | |
| Sage International Group Ltd ($8082) | 20.4% | 236.6% | 28.2% | 35.4% | |
| Maoye International Holdings Ltd ($848) | 30.9% | 32.8% | 24.1% | 31.5% | |
| Tsui Wah Holdings Ltd ($1314) | 5.2% | 8.3% | 9.3% | 30.5% | 10.6% |
| |
|---|
| Median (109 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 2.4% |
|---|
| ANTA Sports Products Ltd ($2020) | 2.0% | 2.8% | 2.4% | 2.8% | 4.1% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Coach Inc ($6388) | 82.0% | 82.3% | 68.7% | 45.0% | 20.8% |
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | |
| |
|---|
| Median (109 companies) | 16.6% | 11.8% | 8.2% | 8.2% | 3.1% |
|---|
| ANTA Sports Products Ltd ($2020) | 31.9% | 21.1% | 19.2% | 22.8% | 27.0% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| China Yongda Automobiles Services Holdings Ltd ($3669) | 3.3x | 3.4x | 4.7x | 5.5x | |
| Zhongsheng Group Holdings Ltd ($881) | 2.2x | 4.6x | 4.5x | 5.3x | |
| NewOcean Energy Holdings Ltd ($342) | 35.2x | 6.2x | 6.1x | 5.3x | |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | |
| |
|---|
| Median (85 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| ANTA Sports Products Ltd ($2020) | -1.4x | -1.8x | -2.3x | -1.6x | -1.3x |
