Is Colour Life Services Group Co Ltd a solid growth stock? - The numbers tells it is
10/03/2016 • About Colour Life Services Group Co Ltd (
$1778) • By InTwits
Pay attention to Colour Life Services Group Co Ltd as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Colour Life Services Group Co Ltd showed growth in the last financial year. Colour Life Services Group Co Ltd's revenue surged on 113% in FY2015. The growth also happened in EBITDA of 15.8% for the same period.
In the last 3 years the company showed fast revenue growth of 61.5% from 2012 to 2015 annualy. EBITDA surged on 64.4% from 2012 to 2015 annualy.
Colour Life Services Group Co Ltd ($1778) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 147 | 197 | 233 | 389 | 828 |
|---|
| Revenue growth, % | | 34.1% | 18.6% | 67.0% | 112.6% |
|---|
| Gross margin, % | 47.2% | 47.9% | 61.6% | 79.6% | 54.9% |
|---|
| SG&A, % | 24.5% | 25.3% | 25.7% | 24.3% | 28.2% |
|---|
| EBITDA | 41 | 62 | 95 | 237 | 274 |
|---|
| EBITDA growth, % | | 51.1% | 54.8% | 148.0% | 15.8% |
|---|
| EBITDA margin, % | 27.9% | 31.4% | 41.0% | 60.8% | 33.1% |
|---|
| Net Income | 7 | 43 | 44 | 146 | 168 |
|---|
| Net Income margin, % | 4.54% | 22.1% | 19.0% | 37.4% | 20.4% |
|---|
| |
| CAPEX | 4 | 11 | 17 | 50 | 51 |
|---|
| CAPEX/Revenue, % | 3.05% | 5.43% | 7.37% | 12.8% | 6.21% |
|---|
| Debt | 41 | 2 | 10 | 135 | 624 |
|---|
| Cash | 31 | 25 | 146 | 687 | 419 |
|---|
| Net Debt/EBITDA | 0.2x | -0.4x | -1.4x | -2.3x | 0.7x |
|---|
| |
| ROIC, % | | 44.2% | 47.9% | 29.3% | 14.5% |
|---|
| ROE, % | | 51.4% | 31.1% | 23.3% | 14.5% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined swiftly from 60.8% in FY2014 to 33.1% in FY2015. In the last 3 years the company's EBITDA margin increased on 1.70 pp from 31.4% in 2012 to 33.1% in 2015.
We call Colour Life Services Group Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 14.5%. During the last three years it dropped - it was 44.2% in FY2012. For the last three years the average ROIC was 30.6%.
Colour Life Services Group Co Ltd showed big decline in Net Income margin of 17 pp from 37.4% to 20.4% in 2015. In the longer period the company showed decline of 1.70 pp from 22.1% in 2012 to 20.4% in 2015.
Colour Life Services Group Co Ltd operates at ROE of 14.5%. It's average level of ROE for the last three years was 23.0%.
Capital expenditures (CAPEX)
To fuel this fast growth Colour Life Services Group Co Ltd had to invest in CAPEX.In FY2015 Colour Life Services Group Co Ltd had CAPEX/Revenue of 6.21%. CAPEX/Revenue surged on 0.779 pp from 5.43% in 2012 to 6.21% in 2015. It's average CAPEX/Revenue for the last three years was 8.81%.
Leverage (Debt)
Colour Life Services Group Co Ltd has low debt level at 0.7x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company showed fast leverage growth of 1.12x from -0.37x in 2012 to 0.75x in 2015.
Peers in Real Estate
Below we provide Colour Life Services Group Co Ltd benchmarking against other companies in Real Estate 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 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| Landsea Green Properties Co Ltd ($106) | -91.1% | -35.1% | -51.2% | 3,097.3% | |
| LVGEM China Real Estate Invest ($95) | -0.1% | -27.5% | -21.9% | 3,008.3% | |
| Rivera Holdings Ltd ($281) | 222.2% | 197.1% | -89.9% | 2,067.2% | |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (173 companies) | 15.0% | 15.4% | 13.0% | 5.0% | 3.2% |
|---|
| Colour Life Services Group Co Ltd ($1778) | | 34.1% | 18.6% | 67.0% | 112.6% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (155 companies) | 43.6% | 41.9% | 40.5% | 39.1% | 48.5% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 47.2% | 47.9% | 61.6% | 79.6% | 54.9% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (173 companies) | 35.3% | 28.9% | 28.0% | 26.4% | 34.5% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 27.9% | 31.4% | 41.0% | 60.8% | 33.1% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% |
| Wanda Hotel Development Co Ltd ($169) | | 5.9% | 24.1% | 1,091.1% | |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | 0.9% |
| |
|---|
| Median (174 companies) | 5.9% | 5.4% | 6.1% | 4.6% | 7.2% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 3.0% | 5.4% | 7.4% | 12.8% | 6.2% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | |
| Hong Kong Ferry Holdings Co Ltd ($50) | 4.7% | 3.8% | 0.6% | 18.0% | |
| |
|---|
| Median (177 companies) | 4.6% | 4.0% | 3.8% | 3.8% | 2.4% |
|---|
| Colour Life Services Group Co Ltd ($1778) | | 44.2% | 47.9% | 29.3% | 14.5% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 10.6x | 14.1x | 24.7x | 1,184.6x | |
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| |
|---|
| Median (140 companies) | 2.1x | 2.4x | 2.8x | 3.0x | 1.5x |
|---|
| Colour Life Services Group Co Ltd ($1778) | 0.2x | -0.4x | -1.4x | -2.3x | 0.7x |
