Shenzhou International Group Holdings Ltd CAPEX jumped on 80.0% in 2015 and Revenue jumped on 13.5%
21/03/2016 • About Shenzhou International Group Holdings Ltd (
$2313) • By InTwits
Shenzhou International Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shenzhou International Group Holdings Ltd is a growth stock: 2015 revenue growth was 13.5%, 5 year revenue CAGR was 13.5% at 2015 ROIC 17.9%
- EBITDA Margin is relatively stable: 26.7% in 2015 vs. 26.1% in 2014 vs. 26.8% in 2011
- Shenzhou International Group Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.2%. At the same time it's a lot of higher than industry average of 4.4%.
- CAPEX is quite volatile: 2,038 in 2015, 1,132 in 2014, 792 in 2013, 650 in 2012, 427 in 2011
- The company has highly profitable business model: ROIC is at 17.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shenzhou International Group Holdings Ltd ($2313) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,043 | 8,938 | 10,047 | 11,132 | 12,639 | 13.5% |
| Gross Profit | 2,602 | 2,545 | 2,839 | 3,227 | 3,849 | 19.3% |
| SG&A | 622 | 744 | 861 | 1,041 | 1,218 | 17.0% |
| EBITDA | 2,419 | 2,356 | 2,632 | 2,910 | 3,374 | 15.9% |
| Net Income | 1,704 | 1,620 | 1,803 | 2,066 | 2,355 | 14.0% |
Balance Sheet
|
|---|
| Cash | 1,030 | 2,144 | 2,609 | 1,428 | 1,816 | 27.1% |
| Short Term Debt | 1,244 | 786 | 0 | 47 | 657 | 1,305.4% |
| Long Term Debt | 0 | 0 | 0 | 2,865 | 3,117 | 8.8% |
Cash flow
|
|---|
| Capex | 427 | 650 | 792 | 1,132 | 2,038 | 80.0% |
Ratios
|
|---|
| Revenue growth | 34.6% | -1.2% | 12.4% | 10.8% | 13.5% | |
| EBITDA growth | 22.6% | -2.6% | 11.7% | 10.6% | 15.9% | |
| Gross Margin | 28.8% | 28.5% | 28.3% | 29.0% | 30.5% | 1.5% |
| EBITDA Margin | 26.8% | 26.4% | 26.2% | 26.1% | 26.7% | 0.5% |
| Net Income Margin | 18.8% | 18.1% | 17.9% | 18.6% | 18.6% | 0.1% |
| SG&A, % of revenue | 6.9% | 8.3% | 8.6% | 9.4% | 9.6% | 0.3% |
| CAPEX, % of revenue | 4.7% | 7.3% | 7.9% | 10.2% | 16.1% | 6.0% |
| ROIC | 29.6% | 24.0% | 22.9% | 19.6% | 17.9% | -1.7% |
| ROE | 31.3% | 22.9% | 19.6% | 18.7% | 18.9% | 0.3% |
| Net Debt/EBITDA | 0.1x | -0.6x | -1.0x | 0.5x | 0.6x | 0.1x |
Revenue and profitability
The company's Revenue surged on 13.5% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.55 pp from 26.1% to 26.7% in 2015.
Gross Margin increased slightly on 1.5 pp from 29.0% to 30.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 16.1% in 2015. CAPEX/Revenue increased on 8.8 pp from 7.3% in 2012 to 16.1% in 2015. Average CAPEX/Revenue for the last three years was 11.4%.Shenzhou International Group Holdings Ltd invested a big chunk of EBITDA (60.4%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (17.90%) and ROE (18.94%). ROIC decreased slightly on 1.7 pp from 19.6% to 17.9% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 1.1x. Net Debt / EBITDA increased on 0.1x from 0.5x to 0.6x in 2015. Debt surged on 29.6% in 2015 while cash surged on 27.1% in 2015.
Appendix 1: Peers in Apparel
Below we provide Shenzhou International Group Holdings 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ares Asia Ltd ($645) | | | | 144.2% | 14.7% |
| Texhong Textile Group Ltd ($2678) | | 6.8% | 12.1% | 27.2% | 1.0% |
| Win Hanverky Holdings Ltd ($3322) | 11.5% | -7.5% | -0.3% | 21.1% | |
| Symphony Holdings Ltd/Hong Kong ($1223) | | -94.0% | 46.8% | 20.4% | 33.1% |
| L & A International Holdings Ltd/ Hong Kong ($8387) | 33.1% | 27.9% | 7.9% | 20.4% | |
| |
|---|
| Median (47 companies) | 20.2% | 5.4% | 0.8% | 5.0% | -2.1% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | | -1.2% | 12.4% | 10.8% | 13.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 65.7% |
| C.banner International Holdings Ltd ($1028) | 63.5% | 63.3% | 62.0% | 63.4% | 61.1% |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | 61.9% |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| |
|---|
| Median (46 companies) | 24.0% | 24.4% | 23.0% | 23.4% | 26.9% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 28.8% | 28.5% | 28.3% | 29.0% | 30.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HOSA International Ltd ($2200) | 46.3% | 44.4% | 42.2% | 37.6% | 26.7% |
| 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% | 30.6% |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | 29.0% |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | 27.9% |
| |
|---|
| Median (47 companies) | 10.4% | 9.5% | 8.9% | 5.6% | 5.8% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 26.8% | 26.4% | 26.2% | 26.1% | 26.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 28.5% |
| 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 (47 companies) | 1.9% | 2.2% | 3.0% | 2.0% | 1.5% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 4.7% | 7.3% | 7.9% | 10.2% | 16.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 16.5% |
| Miko International Holdings Ltd ($1247) | 75.1% | 60.9% | 48.8% | 27.3% | |
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | 27.0% |
| |
|---|
| Median (47 companies) | 11.5% | 8.6% | 6.7% | 3.2% | 4.6% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 29.6% | 24.0% | 22.9% | 19.6% | 17.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | 158.1x |
| 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 | 1.4x |
| |
|---|
| Median (33 companies) | -0.9x | -0.3x | -0.7x | -0.3x | -0.1x |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 0.1x | -0.6x | -1.0x | 0.5x | 0.6x |
