Looking for growth? Don't miss 1010 Printing Group Ltd with its track record of fast growth
07/03/2016 • About 1010 Printing Group Ltd (
$1127) • By InTwits
1010 Printing Group Ltd is an attractive growth stock in Commercial Services industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
1010 Printing Group Ltd showed growth in the last financial year. 1010 Printing Group Ltd's revenue surged on 33.3% in FY2015. The growth also happened in EBITDA of 34.2% for the same period.
In the longer period the company showed fast revenue growth of 35.8% from 2012 to 2015 annualy. EBITDA surged on 30.5% from 2012 to 2015 annualy.
1010 Printing Group Ltd ($1127) financials for the last 5 years
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 640 | 700 | 1,164 | 1,316 | 1,755 |
|---|
| Revenue growth, % | | 9.4% | 66.2% | 13.1% | 33.3% |
|---|
| Gross margin, % | 19.0% | 22.5% | 26.8% | 26.8% | 28.3% |
|---|
| SG&A, % | | | 16.7% | 17.4% | 18.7% |
|---|
| EBITDA | 98 | 111 | 173 | 184 | 247 |
|---|
| EBITDA growth, % | | 14.0% | 56.0% | 6.2% | 34.2% |
|---|
| EBITDA margin, % | 15.2% | 15.9% | 14.9% | 14.0% | 14.1% |
|---|
| Net Income | 62 | 68 | 121 | 146 | 163 |
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| Net Income margin, % | 9.73% | 9.76% | 10.4% | 11.1% | 9.30% |
|---|
| |
| CAPEX | 41 | 22 | 28 | 24 | 17 |
|---|
| CAPEX/Revenue, % | 6.40% | 3.13% | 2.37% | 1.80% | 0.968% |
|---|
| Debt | 124 | 153 | 65 | 128 | 133 |
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| Cash | 77 | 96 | 112 | 158 | 263 |
|---|
| Net Debt/EBITDA | 0.5x | 0.5x | -0.3x | -0.2x | -0.5x |
|---|
| |
| ROIC, % | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
|---|
| ROE, % | 17.7% | 15.9% | 21.8% | 20.7% | 20.8% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. 1010 Printing Group Ltd's EBITDA margin increased slightly on 0.1000 pp from 14% to 14.1% in 2015. In the last 3 years EBITDA margin dropped on 1.80 pp from 15.9% in 2012 to 14.1% in 2015.
We call 1010 Printing Group Ltd an attractive growth stock as together with the growth it delivers high ROIC at 19.9%. Three years ago it was lower at 13.5%. It's average ROIC for the last three years was 19.5%.
1010 Printing Group Ltd showed big decline in Net Income margin of 1.80 pp from 11.1% to 9.30% in 2015. In the last 3 years the company showed decline of 0.500 pp from 9.80% in 2012 to 9.30% in 2015.
1010 Printing Group Ltd operates at ROE of 20.8%. It's average ROE for the last three years was 21.1%.
Capital expenditures (CAPEX)
1010 Printing Group Ltd's CAPEX/Revenue was 0.968% in FY2015. CAPEX/Revenue dropped on 2.16 pp from 3.13% in 2012 to 0.968% in 2015. It's average CAPEX/Revenue for the last three years was 1.71%.
Leverage (Debt)
The company has negative net debt at -0.5x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage dropped on 1.03x from 0.51x in 2012 to -0.53x in 2015.
Valuation vs. comparable companies
At the end of trading day today 1010 Printing Group Ltd traded at 3.0x EV/EBITDA which is 90.4% lower than 30.8x Commercial Services peer group avearge calculated on the basis of 74 companies. At the end of trading day today 1010 Printing Group Ltd traded at 5.3x P/E which is 87.1% lower than 41.0x Commercial Services peer group avearge calculated on the basis of 16 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today 1010 Printing Group Ltd traded at 3.2x EV/(EBITDA-CAPEX) which is higher vs. -3.9x Commercial Services peer group avearge calculated on the basis of 17 companies.
Peers in Commercial Services
Below you can find 1010 Printing Group Ltd benchmarking vs. other companies in Commercial Services 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | 24.4% | 52.3% | 64.4% | 36.8% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (58 companies) | 19.5% | 6.9% | 4.5% | 8.0% | 10.0% |
|---|
| 1010 Printing Group Ltd ($1127) | | 9.4% | 66.2% | 13.1% | 33.3% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% |
| |
|---|
| Median (54 companies) | 33.8% | 31.9% | 30.5% | 30.9% | 28.7% |
|---|
| 1010 Printing Group Ltd ($1127) | 19.0% | 22.5% | 26.8% | 26.8% | 28.3% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (58 companies) | 16.4% | 15.9% | 12.2% | 9.3% | 3.3% |
|---|
| 1010 Printing Group Ltd ($1127) | 15.2% | 15.9% | 14.9% | 14.0% | 14.1% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (57 companies) | 3.6% | 3.4% | 4.5% | 4.8% | 2.1% |
|---|
| 1010 Printing Group Ltd ($1127) | 6.4% | 3.1% | 2.4% | 1.8% | 1.0% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| Poly Culture Group Corp Ltd ($3636) | 48.0% | 29.1% | 33.0% | 16.3% | |
| |
|---|
| Median (58 companies) | 5.0% | 6.0% | 4.2% | 3.2% | 0.9% |
|---|
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (37 companies) | -0.1x | -0.1x | -0.9x | -1.0x | -2.2x |
|---|
| 1010 Printing Group Ltd ($1127) | 0.5x | 0.5x | -0.3x | -0.2x | -0.5x |
