Fu Shou Yuan International Group Ltd's growth is outstanding: revenue grew 32.2% and EBITDA 31.7% annually over the last three years
25/03/2016 • About Fu Shou Yuan International Group Ltd (
$1448) • By InTwits
Fu Shou Yuan International Group Ltd is a fast-growing stock in Commercial Services industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Fu Shou Yuan International Group Ltd showed growth in the last financial year. Fu Shou Yuan International Group Ltd's revenue surged on 39.3% in FY2015. In addition to revenue Fu Shou Yuan International Group Ltd also keeps delivering EBITDA growth. It was 50.2% in FY2015
In the last 3 years Fu Shou Yuan International Group Ltd showed fast revenue growth of 32.2% from 2012 to 2015 annualy. EBITDA surged on 31.7% from 2012 to 2015 annualy.
Fu Shou Yuan International Group Ltd ($1448) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 421 | 480 | 612 | 795 | 1,108 |
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| Revenue growth, % | | 13.9% | 27.5% | 30.0% | 39.3% |
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| Gross margin, % | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
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| SG&A, % | 41.5% | 41.5% | 37.4% | 43.9% | 41.1% |
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| EBITDA | 195 | 209 | 316 | 318 | 478 |
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| EBITDA growth, % | | 7.3% | 50.8% | 0.8% | 50.2% |
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| EBITDA margin, % | 46.3% | 43.6% | 51.6% | 40.0% | 43.1% |
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| Net Income | 131 | 124 | 167 | 230 | 284 |
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| Net Income margin, % | 31.0% | 25.9% | 27.3% | 29.0% | 25.7% |
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| |
| CAPEX | 8 | 23 | 75 | 77 | 109 |
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| CAPEX/Revenue, % | 1.89% | 4.89% | 12.2% | 9.73% | 9.80% |
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| Debt | 102 | 101 | 77 | 95 | 206 |
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| Cash | 222 | 287 | 1,544 | 1,297 | 1,277 |
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| Net Debt/EBITDA | -0.6x | -0.9x | -4.6x | -3.8x | -2.2x |
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| |
| ROIC, % | 44.7% | 36.8% | 22.8% | 13.0% | 15.3% |
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| ROE, % | 62.0% | 55.5% | 18.3% | 12.9% | 13.5% |
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Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. EBITDA margin increased on 3.10 pp from 40% to 43.1% in 2015. If we look for the longer period the company showed small EBITDA margin decline of 0.500 pp from 43.6% in 2012 to 43.1% in 2015.
We call Fu Shou Yuan International Group Ltd an attractive growth stock as together with the growth it delivers high ROIC at 15.3%. Three years ago it was considerably higher at 36.8%. Average ROIC for the last three years was 17.0%.
Fu Shou Yuan International Group Ltd showed big decline in Net Income margin of 3.30 pp from 29% to 25.7% in 2015. In the longer period the company showed small Net Income margin decline of 0.200 pp from 25.9% in 2012 to 25.7% in 2015.
Fu Shou Yuan International Group Ltd operates at ROE of 13.5%. For the last three years the average ROE was 14.9%.
Capital expenditures (CAPEX)
To this fast growth Fu Shou Yuan International Group Ltd had to invest in CAPEX.In FY2015 the company had CAPEX/Revenue of 9.80%. CAPEX/Revenue surged on 4.91 pp from 4.89% in 2012 to 9.80% in 2015. It's average CAPEX/Revenue for the last three years was 10.6%.
Leverage (Debt)
The company has negative net debt at -2.2x Net Debt/EBITDA - at the same time with high growth. In the longer period Fu Shou Yuan International Group Ltd showed fast leverage growth of 1.35x from -0.89x in 2012 to -2.24x in 2015.
Peers in Commercial Services
Below we provide Fu Shou Yuan International Group Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| 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) | | 52.3% | 64.4% | 36.8% | 10.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (60 companies) | 19.5% | 8.0% | 4.7% | 8.0% | 8.3% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | | 13.9% | 27.5% | 30.0% | 39.3% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| 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% |
| Cross-Harbour Holdings Ltd/The ($32) | 55.3% | 59.2% | 60.0% | 61.1% | |
| |
|---|
| Median (56 companies) | 32.9% | 31.0% | 29.2% | 30.8% | 28.7% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
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% | 53.0% |
| 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 (60 companies) | 16.4% | 16.0% | 13.4% | 10.9% | 6.7% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 46.3% | 43.6% | 51.6% | 40.0% | 43.1% |
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 (59 companies) | 4.0% | 3.2% | 4.0% | 4.0% | 2.5% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 1.9% | 4.9% | 12.2% | 9.7% | 9.8% |
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% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| |
|---|
| Median (60 companies) | 5.0% | 5.9% | 4.2% | 3.2% | 4.8% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 44.7% | 36.8% | 22.8% | 13.0% | 15.3% |
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 (39 companies) | -0.0x | -0.0x | -0.7x | -0.5x | -2.0x |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | -0.6x | -0.9x | -4.6x | -3.8x | -2.2x |
