Aupu Group Holding Co Ltd reports 28.6% CAPEX growth and 18.5% Revenue growth
22/03/2016 • About Aupu Group Holding Co Ltd (
$477) • By InTwits
Aupu Group Holding Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aupu Group Holding Co Ltd is a growth stock: 2015 revenue growth was 18.5%, 5 year revenue CAGR was 12.1% at 2015 ROIC 32.2%
- Aupu Group Holding Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's in pair with industry average of 3.5%.
- CAPEX is quite volatile: 52.9 in 2015, 41.2 in 2014, 39.1 in 2013, 8.4 in 2012, 10.4 in 2011
- The company has highly profitable business model: ROIC is at 32.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aupu Group Holding Co Ltd ($477) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 538.0 | 568.9 | 620.3 | 784.3 | 929.1 | 18.5% |
| Gross Profit | 253.2 | 276.7 | 279.3 | 374.8 | 452.1 | 20.6% |
| SG&A | | 163.1 | 158.5 | 145.1 | 178.6 | 23.1% |
| EBITDA | 97.5 | 87.1 | 109.3 | 235.9 | 250.7 | 6.3% |
| Net Income | 73.0 | 90.0 | 82.0 | 170.2 | 207.4 | 21.8% |
Balance Sheet
|
|---|
| Cash | 31.5 | 61.8 | 69.2 | 41.6 | 135.3 | 224.8% |
| Short Term Debt | 82.7 | 41.9 | 148.4 | 173.3 | 76.8 | -55.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 10.4 | 8.4 | 39.1 | 41.2 | 52.9 | 28.6% |
Ratios
|
|---|
| Revenue growth | 2.6% | 5.7% | 9.0% | 26.4% | 18.5% | |
| EBITDA growth | -4.0% | -10.6% | 25.4% | 115.8% | 6.3% | |
| Gross Margin | 47.1% | 48.6% | 45.0% | 47.8% | 48.7% | 0.9% |
| EBITDA Margin | 18.1% | 15.3% | 17.6% | 30.1% | 27.0% | -3.1% |
| Net Income Margin | 13.6% | 15.8% | 13.2% | 21.7% | 22.3% | 0.6% |
| SG&A, % of revenue | | 28.7% | 25.6% | 18.5% | 19.2% | 0.7% |
| CAPEX, % of revenue | 1.9% | 1.5% | 6.3% | 5.3% | 5.7% | 0.4% |
| ROIC | 18.0% | 14.8% | 17.0% | 32.2% | 32.2% | -0.1% |
| ROE | 17.2% | 20.6% | 18.1% | 34.1% | 36.0% | 1.9% |
| Net Debt/EBITDA | 0.5x | -0.2x | 0.7x | 0.6x | -0.2x | -0.8x |
Revenue and profitability
The company's Revenue surged on 18.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 62.4 pp from -5.5% to -67.9% in 2015.
Gross Margin increased slightly on 0.87 pp from 47.8% to 48.7% in 2015. SG&A as a % of Revenue increased slightly on 0.72 pp from 18.5% to 19.2% in 2015.
Net Income marign increased slightly on 0.61 pp from 21.7% to 22.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Aupu Group Holding Co Ltd had CAPEX/Revenue of 5.7%. CAPEX/Revenue increased on 4.2 pp from 1.5% in 2012 to 5.7% in 2015. It's average CAPEX/Revenue for the last three years was 5.8%.
Return on investment
The company operates at high and attractive ROIC (32.15%) and ROE (35.99%). ROIC showed almost no change in 2015. ROE increased slightly on 1.9 pp from 34.1% to 36.0% in 2015.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 0.6x to -0.2x in 2015. Debt dropped on 55.7% in 2015 while cash surged on 225% in 2015.
Appendix 1: Peers in Home Furnishings
Below we provide Aupu Group Holding Co Ltd benchmarking against other companies in Home Furnishings 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 |
|---|
| Jiu Rong Holdings Ltd ($2358) | | | 136.9% | 438.7% | |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| Alco Holdings Ltd ($328) | | -10.2% | -32.6% | 22.8% | 11.8% |
| Tonly Electronics Holdings Ltd ($1249) | | -10.4% | 24.0% | 19.0% | -10.4% |
| |
|---|
| Median (26 companies) | 16.5% | -0.2% | 5.4% | 1.1% | 0.9% |
|---|
| Aupu Group Holding Co Ltd ($477) | | 5.7% | 9.0% | 26.4% | 18.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Grande Holdings Ltd/The ($186) | 19.9% | 23.7% | 25.4% | 29.0% | |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| Hing Lee HK Holdings Ltd ($396) | 23.1% | 16.3% | 18.7% | 22.7% | |
| |
|---|
| Median (26 companies) | 16.4% | 17.3% | 16.8% | 15.9% | 14.9% |
|---|
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | 48.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| See Corp Ltd ($491) | -58.7% | -38.4% | -59.5% | 32.0% | -35.6% |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | 8.6% |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | |
| Samson Holding Ltd ($531) | 6.2% | 7.5% | 6.6% | 9.4% | |
| Mastercraft International Holdings Ltd ($8146) | 7.6% | 7.4% | 8.2% | 8.5% | |
| |
|---|
| Median (26 companies) | 5.9% | 4.9% | 4.5% | 4.5% | 4.3% |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | 27.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | |
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | 14.1% |
| Alco Holdings Ltd ($328) | 5.1% | 0.8% | 1.4% | 5.2% | 1.3% |
| Skyworth Digital Holdings Ltd ($751) | 2.2% | 3.0% | 2.9% | 4.9% | 2.9% |
| Kasen International Holdings Ltd ($496) | 2.6% | 5.0% | 2.6% | 4.7% | |
| |
|---|
| Median (26 companies) | 1.8% | 1.5% | 1.9% | 2.7% | 2.7% |
|---|
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | |
| Haier Electronics Group Co Ltd ($1169) | 45.3% | 37.5% | 32.8% | 20.8% | 5.9% |
| Welling Holding Ltd ($382) | 29.4% | 23.5% | 24.3% | 18.7% | 10.7% |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
| Skyworth Digital Holdings Ltd ($751) | 11.7% | 11.6% | 13.4% | 10.9% | 23.0% |
| |
|---|
| Median (26 companies) | 5.0% | 3.7% | 4.4% | 3.9% | 4.1% |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | 32.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | |
| Chigo Holding Ltd ($449) | 27.0x | 12.3x | 11.8x | 14.5x | |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | |
| |
|---|
| Median (19 companies) | 0.0x | -0.3x | -1.1x | -1.9x | -2.7x |
|---|
| Aupu Group Holding Co Ltd ($477) | 0.5x | -0.2x | 0.7x | 0.6x | -0.2x |
