The growth of Broad Greenstate International Co Ltd is hard to miss
28/03/2016 • About Broad Greenstate International Co Ltd (
$1253) • By InTwits
Broad Greenstate International Co Ltd is a growth stock in Engineering&Construction industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Broad Greenstate International Co Ltd showed fast growth in the last financial year. Broad Greenstate International Co Ltd's revenue surged on 17.5% in FY2015. At the same time Broad Greenstate International Co Ltd well managed its profitability and showed even faster growth in EBITDA of 26.5% for the same period.
In the longer period Broad Greenstate International Co Ltd showed fast revenue growth of 41.1% from 2012 to 2015 annualy. EBITDA surged on 78.5% from 2012 to 2015 annualy.
Broad Greenstate International Co Ltd ($1253) financials for the last 5 years
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 177 | 222 | 290 | 530 | 623 |
|---|
| Revenue growth, % | | 25.2% | 30.8% | 82.9% | 17.5% |
|---|
| Gross margin, % | 16.7% | 20.1% | 28.7% | 35.8% | 36.7% |
|---|
| SG&A, % | | | | | 6.78% |
|---|
| EBITDA | 20 | 34 | 71 | 153 | 193 |
|---|
| EBITDA growth, % | | 73.1% | 108.4% | 115.8% | 26.5% |
|---|
| EBITDA margin, % | 11.1% | 15.3% | 24.4% | 28.8% | 31.0% |
|---|
| Net Income | 19 | 25 | 54 | 105 | 151 |
|---|
| Net Income margin, % | 10.6% | 11.1% | 18.5% | 19.7% | 24.2% |
|---|
| |
| CAPEX | 0 | 1 | 6 | 5 | 12 |
|---|
| CAPEX/Revenue, % | 0.251% | 0.585% | 1.93% | 0.939% | 1.92% |
|---|
| Debt | 0 | 12 | 12 | 160 | 278 |
|---|
| Cash | 54 | 52 | 11 | 144 | 257 |
|---|
| Net Debt/EBITDA | -2.8x | -1.2x | 0.0x | 0.1x | 0.1x |
|---|
| |
| ROIC, % | | 33.2% | 85.1% | 51.2% | 26.0% |
|---|
| ROE, % | | 28.4% | 100.2% | 61.6% | 34.0% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. The company's EBITDA margin increased on 2.20 pp from 28.8% to 31% in 2015. In the last 3 years Broad Greenstate International Co Ltd's EBITDA margin surged on 15.7 pp from 15.3% in 2012 to 31% in 2015.
We call Broad Greenstate International Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 26.0%. During the last three years it dropped - it was 33.2% in FY2012. It's average ROIC for the last three years was 54.1%.
Broad Greenstate International Co Ltd showed fast Net Income margin growth of 4.50 pp from 19.7% to 24.2% in 2015. If we look for the longer period Broad Greenstate International Co Ltd's Net Income margin surged on 13.1 pp from 11.1% in 2012 to 24.2% in 2015.
Broad Greenstate International Co Ltd operates at ROE of 34.0%. It's average ROE for the last three years was 65.3%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 1.92%. Broad Greenstate International Co Ltd's CAPEX/Revenue surged on 1.34 pp from 0.585% in 2012 to 1.92% in 2015. It's average CAPEX/Revenue for the last three years was 1.60%.
Leverage (Debt)
The company has low debt level at 0.1x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 1.28x from -1.18x in 2012 to 0.11x in 2015.
Peers in Engineering&Construction
Below you can find Broad Greenstate International Co Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | -65.7% |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (42 companies) | 12.5% | 9.7% | 21.0% | 14.0% | 14.0% |
|---|
| Broad Greenstate International Co Ltd ($1253) | | 25.2% | 30.8% | 82.9% | 17.5% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Kingbo Strike Ltd ($1421) | 22.9% | 32.4% | 44.4% | 40.3% | 30.7% |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| |
|---|
| Median (37 companies) | 11.0% | 12.4% | 12.1% | 12.9% | 11.2% |
|---|
| Broad Greenstate International Co Ltd ($1253) | 16.7% | 20.1% | 28.7% | 35.8% | 36.7% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | 60.9% |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (43 companies) | 8.5% | 9.2% | 7.8% | 6.8% | 4.7% |
|---|
| Broad Greenstate International Co Ltd ($1253) | 11.1% | 15.3% | 24.4% | 28.8% | 31.0% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | 9.6% |
| |
|---|
| Median (43 companies) | 4.4% | 2.5% | 2.9% | 1.8% | 2.7% |
|---|
| Broad Greenstate International Co Ltd ($1253) | 0.3% | 0.6% | 1.9% | 0.9% | 1.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | 43.7% |
| Kingbo Strike Ltd ($1421) | | 56.9% | 125.4% | 48.9% | 11.4% |
| Ngai Shun Holdings Ltd ($1246) | | 68.8% | 77.2% | 45.2% | 31.0% |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| |
|---|
| Median (44 companies) | 6.9% | 5.8% | 5.3% | 4.1% | 2.5% |
|---|
| Broad Greenstate International Co Ltd ($1253) | | 33.2% | 85.1% | 51.2% | 26.0% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | 47.0x |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | 15.9x |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (36 companies) | 0.5x | 1.5x | 1.7x | 2.4x | 2.7x |
|---|
| Broad Greenstate International Co Ltd ($1253) | -2.8x | -1.2x | 0.0x | 0.1x | 0.1x |
