Eye on Yestar International Holdings Co Ltd with its long history of healthy growth
21/03/2016 • About Yestar International Holdings Co Ltd (
$2393) • By InTwits
Have you thought about Yestar International Holdings Co Ltd as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Yestar International Holdings Co Ltd showed growth in the last financial year. The company's revenue surged on 60.3% in FY2015. Together with revenue growth Yestar International Holdings Co Ltd also managed to keep EBITDA growth. EBITDA grew 112% for the same period.
If we look for the longer period Yestar International Holdings Co Ltd showed fast revenue growth of 36.9% from 2012 to 2015 annualy. EBITDA surged on 56.9% from 2012 to 2015 annualy.
Yestar International Holdings Co Ltd ($2393) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 977 | 956 | 1,173 | 1,531 | 2,455 |
|---|
| Revenue growth, % | | -2.2% | 22.8% | 30.5% | 60.3% |
|---|
| Gross margin, % | 16.7% | 17.5% | 17.8% | 17.2% | 21.1% |
|---|
| SG&A, % | 9.95% | 9.49% | 9.83% | 7.55% | 9.18% |
|---|
| EBITDA | 83 | 91 | 112 | 166 | 353 |
|---|
| EBITDA growth, % | | 10.3% | 22.1% | 49.0% | 112.2% |
|---|
| EBITDA margin, % | 8.48% | 9.56% | 9.51% | 10.9% | 14.4% |
|---|
| Net Income | 47 | 57 | 65 | 101 | 163 |
|---|
| Net Income margin, % | 4.84% | 5.91% | 5.55% | 6.59% | 6.63% |
|---|
| |
| CAPEX | 22 | 52 | 23 | 10 | 19 |
|---|
| CAPEX/Revenue, % | 2.29% | 5.43% | 1.98% | 0.682% | 0.755% |
|---|
| Debt | 92 | 106 | 197 | 171 | 420 |
|---|
| Cash | 142 | 160 | 283 | 195 | 506 |
|---|
| Net Debt/EBITDA | -0.6x | -0.6x | -0.8x | -0.1x | -0.2x |
|---|
| |
| ROIC, % | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
|---|
| ROE, % | 35.1% | 37.9% | 27.5% | 31.1% | 26.6% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Yestar International Holdings Co Ltd's EBITDA margin surged on 3.50 pp from 10.9% to 14.4% in 2015. In the last 3 years EBITDA margin surged on 4.80 pp from 9.60% in 2012 to 14.4% in 2015.
Yestar International Holdings Co Ltd shows attractive ROIC at 25.4% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 28.8%. It's average level of ROIC for the last three years was 25.2%.
The company showed no change in Net Income margin of 0 pp from 6.60% to 6.60% in 2015. In the longer period Yestar International Holdings Co Ltd showed fast Net Income margin growth of 0.700 pp from 5.90% in 2012 to 6.60% in 2015.
Yestar International Holdings Co Ltd operates at ROE of 26.6%. It's average ROE for the last three years was 28.4%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.755% in FY2015. Yestar International Holdings Co Ltd's CAPEX/Revenue dropped on 4.67 pp from 5.43% in 2012 to 0.755% in 2015. Average CAPEX/Revenue for the last three years was 1.14%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -0.2x Net Debt/EBITDA. If we look for the longer period leverage surged on 0.36x from -0.60x in 2012 to -0.24x in 2015.
Peers in Distribution/Wholesale
Below you can find Yestar International Holdings Co Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| Forefront Group Ltd ($885) | | | 504.6% | 3,871.0% | |
| China LNG Group Ltd ($931) | -84.5% | 694.8% | 13.6% | 1,341.3% | |
| Sheng Yuan Holdings Ltd ($851) | | -86.1% | 756.9% | 567.2% | -2.1% |
| China Infrastructure Investment Ltd ($600) | 346.9% | 412.1% | -50.9% | 557.9% | |
| China-Hongkong Photo Products Holdings Ltd ($1123) | | 24.9% | 9.0% | 81.2% | 12.2% |
| |
|---|
| Median (37 companies) | 14.6% | 3.1% | 0.0% | 0.8% | 0.0% |
|---|
| Yestar International Holdings Co Ltd ($2393) | | -2.2% | 22.8% | 30.5% | 60.3% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Goldin Financial Holdings Ltd ($530) | 67.0% | 75.3% | 71.7% | 74.8% | 73.8% |
| Forefront Group Ltd ($885) | | | | 69.8% | |
| YGM Trading Ltd ($375) | 67.1% | 66.5% | 67.4% | 64.0% | 62.5% |
| Goldlion Holdings Ltd ($533) | 57.3% | 56.4% | 54.1% | 55.7% | |
| Sincere Watch Hong Kong Ltd ($444) | 34.2% | 35.6% | 39.7% | 38.8% | 38.3% |
| |
|---|
| Median (33 companies) | 15.5% | 17.3% | 17.4% | 19.3% | 24.8% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 16.7% | 17.5% | 17.8% | 17.2% | 21.1% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Goldin Financial Holdings Ltd ($530) | -134.6% | 163.7% | 613.4% | 285.7% | 364.1% |
| China LNG Group Ltd ($931) | 195.2% | 95.1% | 76.4% | 97.9% | |
| Forefront Group Ltd ($885) | | -2,113.8% | -803.1% | 57.7% | |
| China Infrastructure Investment Ltd ($600) | -1,171.2% | -274.9% | 120.0% | 52.0% | |
| GA Holdings Ltd ($8126) | -4.5% | 8.0% | 19.7% | 22.9% | |
| |
|---|
| Median (37 companies) | 2.2% | 2.1% | 1.9% | 4.5% | 1.8% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 8.5% | 9.6% | 9.5% | 10.9% | 14.4% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| C Y Foundation Group Ltd ($1182) | 9.8% | 2.5% | 5.2% | 82.2% | 9.3% |
| Inspur International Ltd ($596) | 0.9% | 8.4% | 12.2% | 33.6% | |
| SIS International Holdings ($529) | 0.2% | 13.4% | 31.8% | 14.8% | |
| HKC International Holdings Ltd ($248) | 0.9% | 5.5% | 0.8% | 11.4% | 0.5% |
| Tan Chong International Ltd ($693) | 7.6% | 6.0% | 7.6% | 7.0% | |
| |
|---|
| Median (36 companies) | 1.3% | 1.3% | 1.7% | 1.7% | 1.6% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 2.3% | 5.4% | 2.0% | 0.7% | 0.8% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China LNG Group Ltd ($931) | 2.2% | 8.4% | 7.4% | 87.0% | |
| Powerwell Pacific Holdings Ltd ($8265) | 27.8% | 6.4% | 6.4% | 23.6% | |
| Forefront Group Ltd ($885) | -37.7% | -4.9% | -11.0% | 19.5% | |
| Sincere Watch Hong Kong Ltd ($444) | 46.4% | 51.7% | 27.7% | 14.6% | 5.5% |
| GA Holdings Ltd ($8126) | -6.1% | 3.3% | 12.0% | 13.5% | |
| |
|---|
| Median (38 companies) | 2.2% | 2.1% | 0.9% | 3.1% | 0.9% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 29.4% | 28.8% | 24.1% | 26.2% | 25.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Sheng Yuan Holdings Ltd ($851) | | | | 19.3x | 15.4x |
| Takson Holdings Ltd ($918) | | | 11.5x | 11.7x | 15.7x |
| Huiyin Household Appliances Holdings Co Ltd ($1280) | 10.1x | | | 10.9x | |
| Pacific Andes International Holdings Ltd ($1174) | 4.9x | 5.1x | 9.1x | 7.8x | |
| SIS International Holdings ($529) | -62.1x | -1.8x | 7.0x | 7.2x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.1x | -0.5x | 0.3x | -0.1x |
|---|
| Yestar International Holdings Co Ltd ($2393) | -0.6x | -0.6x | -0.8x | -0.1x | -0.2x |
