Beijing Beida Jade Bird Universal Sci-Tech Co Ltd is an attractive stock for a growth investor
29/03/2016 • About Beijing Beida Jade Bird Universal Sci-Tech Co Ltd (
$8095) • By InTwits
Beijing Beida Jade Bird Universal Sci-Tech Co Ltd is an attractive growth stock in Software industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Beijing Beida Jade Bird Universal Sci-Tech Co Ltd showed fast growth in the last financial year. Beijing Beida Jade Bird Universal Sci-Tech Co Ltd's revenue surged on 18.6% in FY2015. At the same time the company well managed its profitability and showed even faster growth in EBITDA of 39.9% for the same period.
In the longer period the company showed fast revenue growth of 25.9% from 2012 to 2015 annualy. EBITDA surged on 29.2% from 2012 to 2015 annualy.
Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 370 | 538 | 749 | 904 | 1,072 |
|---|
| Revenue growth, % | | 45.5% | 39.4% | 20.6% | 18.6% |
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| Gross margin, % | 41.6% | 46.5% | 42.5% | 42.1% | 43.3% |
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| SG&A, % | 21.8% | 22.3% | 18.7% | 19.6% | 15.9% |
|---|
| EBITDA | 76 | 127 | 175 | 196 | 274 |
|---|
| EBITDA growth, % | | 67.3% | 37.7% | 11.9% | 39.9% |
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| EBITDA margin, % | 20.5% | 23.6% | 23.3% | 21.6% | 25.5% |
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| Net Income | 36 | 33 | 53 | 101 | 76 |
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| Net Income margin, % | 9.75% | 6.05% | 7.09% | 11.2% | 7.09% |
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| |
| CAPEX | 13 | 47 | 41 | 39 | 117 |
|---|
| CAPEX/Revenue, % | 3.53% | 8.66% | 5.49% | 4.29% | 10.9% |
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| Debt | 39 | 139 | 185 | 208 | 218 |
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| Cash | 227 | 222 | 285 | 366 | 314 |
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| Net Debt/EBITDA | -2.5x | -0.7x | -0.6x | -0.8x | -0.3x |
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| |
| ROIC, % | 5.6% | 8.9% | 10.7% | 11.0% | 14.0% |
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| ROE, % | 4.1% | 3.5% | 5.3% | 9.5% | 6.4% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin surged on 3.90 pp from 21.6% to 25.5% in 2015. In the last 3 years EBITDA margin increased on 1.90 pp from 23.6% in 2012 to 25.5% in 2015.
Beijing Beida Jade Bird Universal Sci-Tech Co Ltd shows attractive ROIC at 14.0% for the last 12 months which assumes stable development model. Three years ago it was lower at 8.88%. For the last three years the average ROIC was 11.9%.
The company's Net Income margin dropped on 4.10 pp from 11.2% to 7.10% in 2015. If we look for the longer period the company showed fast Net Income margin growth of 1.10 pp from 6% in 2012 to 7.10% in 2015.
Beijing Beida Jade Bird Universal Sci-Tech Co Ltd operates at ROE of 6.39%. It's average level of ROE for the last three years was 7.08%.
Capital expenditures (CAPEX)
To this fast growth Beijing Beida Jade Bird Universal Sci-Tech Co Ltd had to invest in CAPEX.In FY2015 Beijing Beida Jade Bird Universal Sci-Tech Co Ltd had CAPEX/Revenue of 10.9%. Beijing Beida Jade Bird Universal Sci-Tech Co Ltd's CAPEX/Revenue surged on 2.24 pp from 8.66% in 2012 to 10.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.89%.
Leverage (Debt)
The company has negative net debt at -0.3x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period Beijing Beida Jade Bird Universal Sci-Tech Co Ltd's leverage surged on 0.30x from -0.65x in 2012 to -0.35x in 2015.
Peers in Software
Below we provide Beijing Beida Jade Bird Universal Sci-Tech Co Ltd benchmarking against other companies in Software 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 |
|---|
| Pizu Group Holdings Ltd ($8053) | | 40.3% | -42.9% | 1,742.9% | 157.9% |
| China City Railway Transportation Technology Holdings Co Ltd ($1522) | 194.6% | 164.0% | 33.6% | 100.5% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | -16.7% | 393.7% | -6.6% | 92.2% | |
| Epicurean and Co Ltd ($8213) | | 177.0% | 185.7% | 62.6% | 22.0% |
| China Bio Cassava Holdings Ltd ($8129) | | -14.2% | 38.8% | 55.1% | -19.7% |
| |
|---|
| Median (33 companies) | 16.2% | 9.5% | 10.3% | 21.2% | 14.1% |
|---|
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | | 45.5% | 39.4% | 20.6% | 18.6% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Bio Cassava Holdings Ltd ($8129) | 90.2% | 90.4% | 97.4% | 98.4% | 98.3% |
| Chanjet Information Technology Co Ltd ($1588) | 91.9% | 89.2% | 91.3% | 92.4% | 91.4% |
| NetDragon Websoft Inc ($777) | 90.1% | 93.4% | 90.8% | 89.3% | |
| China Mobile Games and Cultural Investment Ltd ($8081) | 19.4% | 6.5% | 45.3% | 84.8% | |
| Kingdee International Software Group Co Ltd ($268) | 70.1% | 65.0% | 75.3% | 82.5% | 81.5% |
| |
|---|
| Median (32 companies) | 51.0% | 44.3% | 41.2% | 40.3% | 39.4% |
|---|
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | 41.6% | 46.5% | 42.5% | 42.1% | 43.3% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Sinosoft Technology Group Ltd ($1297) | 55.5% | 62.6% | 54.9% | 57.2% | 59.0% |
| International Entertainment Corp ($1009) | 235.1% | 50.8% | 64.0% | 54.9% | 62.0% |
| China Binary Sale Technology Ltd ($8255) | 41.3% | 35.1% | 35.4% | 44.4% | 50.5% |
| Microsoft Corp ($4338) | 42.8% | 33.5% | 39.2% | 38.0% | 25.8% |
| Kingdee International Software Group Co Ltd ($268) | 19.5% | 7.8% | 33.2% | 37.2% | 31.9% |
| |
|---|
| Median (33 companies) | 11.8% | 8.1% | 10.8% | 8.8% | 9.1% |
|---|
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | 20.5% | 23.6% | 23.3% | 21.6% | 25.5% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| NetDragon Websoft Inc ($777) | 13.3% | 21.1% | 34.6% | 54.6% | |
| China Eco-Farming Ltd ($8166) | 0.3% | 0.6% | 0.7% | 18.1% | 2.5% |
| TravelSky Technology Ltd ($696) | 5.8% | 8.9% | 21.7% | 18.1% | |
| Kingsoft Corp Ltd ($3888) | 6.8% | 4.3% | 3.8% | 14.3% | 11.1% |
| Sing Lee Software Group Ltd ($8076) | 19.4% | 3.3% | 0.2% | 14.0% | 1.1% |
| |
|---|
| Median (32 companies) | 2.0% | 1.3% | 2.0% | 3.5% | 1.7% |
|---|
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | 3.5% | 8.7% | 5.5% | 4.3% | 10.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Binary Sale Technology Ltd ($8255) | | 27.7% | 26.9% | 28.4% | 19.0% |
| Microsoft Corp ($4338) | 43.4% | 28.6% | 30.3% | 26.2% | 15.6% |
| Finsoft Corp ($8018) | | 140.5% | 4.6% | 25.0% | -5.6% |
| Sinosoft Technology Group Ltd ($1297) | 31.6% | 34.0% | 21.9% | 20.2% | 20.8% |
| Boyaa Interactive International Ltd ($434) | 100.4% | 75.3% | 21.3% | 20.0% | |
| |
|---|
| Median (33 companies) | 1.6% | 3.0% | 4.6% | 1.2% | 2.2% |
|---|
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | 5.6% | 8.9% | 10.7% | 11.0% | 14.0% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Pizu Group Holdings Ltd ($8053) | | | | 346.1x | -0.4x |
| Epicurean and Co Ltd ($8213) | 2.9x | 2.3x | 4.7x | 12.3x | 12.0x |
| Sing Lee Software Group Ltd ($8076) | | | | 6.2x | 4.4x |
| China Technology Solar Power Holdings Ltd ($8111) | | | 7.4x | 3.3x | 0.2x |
| Chinasoft International Ltd ($354) | -1.3x | -0.7x | 0.7x | 1.5x | 0.7x |
| |
|---|
| Median (21 companies) | -0.9x | -1.1x | -1.9x | -2.3x | -0.4x |
|---|
| Beijing Beida Jade Bird Universal Sci-Tech Co Ltd ($8095) | -2.5x | -0.7x | -0.6x | -0.8x | -0.3x |
