Shanghai Fudan Microelectronics Group Co Ltd is an attractive growth stock
29/03/2016 • About Shanghai Fudan Microelectronics Group Co Ltd (
$1385) • By InTwits
Pay attention to Shanghai Fudan Microelectronics Group Co Ltd as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Shanghai Fudan Microelectronics Group Co Ltd showed fast growth in the last financial year. Shanghai Fudan Microelectronics Group Co Ltd's revenue surged on 23.2% in FY2015. In addition to revenue Shanghai Fudan Microelectronics Group Co Ltd also keeps delivering EBITDA growth. It was 30.0% in FY2015
In the last 3 years Shanghai Fudan Microelectronics Group Co Ltd showed fast revenue growth of 13.9% from 2012 to 2015 annualy. EBITDA surged on 14.3% from 2012 to 2015 annualy.
Shanghai Fudan Microelectronics Group Co Ltd ($1385) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 610 | 704 | 817 | 844 | 1,040 |
|---|
| Revenue growth, % | | 15.5% | 16.0% | 3.3% | 23.2% |
|---|
| Gross margin, % | 43.7% | 47.7% | 48.7% | 47.5% | 52.9% |
|---|
| SG&A, % | | 13.5% | 14.6% | 15.1% | 13.7% |
|---|
| EBITDA | 137 | 187 | 195 | 215 | 279 |
|---|
| EBITDA growth, % | | 36.5% | 4.6% | 9.9% | 30.0% |
|---|
| EBITDA margin, % | 22.4% | 26.5% | 23.9% | 25.4% | 26.8% |
|---|
| Net Income | 106 | 140 | 159 | 168 | 159 |
|---|
| Net Income margin, % | 17.5% | 19.9% | 19.5% | 19.9% | 15.3% |
|---|
| |
| CAPEX | 50 | 33 | 90 | 119 | 90 |
|---|
| CAPEX/Revenue, % | 8.28% | 4.75% | 11.0% | 14.2% | 8.66% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 148 | 216 | 191 | 161 | 121 |
|---|
| Net Debt/EBITDA | -1.1x | -1.2x | -1.0x | -0.8x | -0.4x |
|---|
| |
| ROIC, % | 22.2% | 25.5% | 22.7% | 21.1% | 20.9% |
|---|
| ROE, % | 22.3% | 25.0% | 24.1% | 21.6% | 17.2% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Shanghai Fudan Microelectronics Group Co Ltd's EBITDA margin increased on 1.40 pp from 25.4% to 26.8% in 2015. In the longer period Shanghai Fudan Microelectronics Group Co Ltd's EBITDA margin increased slightly on 0.300 pp from 26.5% in 2012 to 26.8% in 2015.
We call Shanghai Fudan Microelectronics Group Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 20.9%. Three years ago it was a bit higher at 25.5%. For the last three years the average ROIC was 21.6%.
The company's Net Income margin dropped on 4.60 pp from 19.9% to 15.3% in 2015. In the longer period Shanghai Fudan Microelectronics Group Co Ltd showed big decline in Net Income margin of 4.60 pp from 19.9% in 2012 to 15.3% in 2015.
Shanghai Fudan Microelectronics Group Co Ltd operates at ROE of 17.2%. It's average ROE for the last three years was 21.0%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.In FY2015 the company had CAPEX/Revenue of 8.66%. The company showed fast CAPEX/Revenue growth of 3.91 pp from 4.75% in 2012 to 8.66% in 2015. It's average CAPEX/Revenue for the last three years was 11.3%.
Leverage (Debt)
Having such a fast growth profile Shanghai Fudan Microelectronics Group Co Ltd keeps negative net debt at -0.4x Net Debt/EBITDA. In the last 3 years the company's leverage surged on 0.72x from -1.16x in 2012 to -0.43x in 2015.
Peers in Semiconductors
Below you can find Shanghai Fudan Microelectronics Group Co Ltd benchmarking vs. other companies in Semiconductors 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 |
|---|
| Honbridge Holdings Ltd ($8137) | 3,428.4% | -76.4% | -97.5% | 608.9% | |
| Shunfeng International Clean Energy Ltd ($1165) | 216.5% | -46.3% | 44.4% | 275.6% | |
| Phoenitron Holdings Ltd ($8066) | -8.8% | -7.2% | 4.0% | 243.8% | |
| Hanergy Thin Film Power Group Ltd ($566) | -15.1% | 7.5% | 19.1% | 192.8% | |
| China Jinhai International Group Ltd ($139) | | | | 140.3% | -81.9% |
| |
|---|
| Median (21 companies) | -0.5% | -14.0% | 3.0% | 11.7% | -7.1% |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | | 15.5% | 16.0% | 3.3% | 23.2% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Heng Xin China Holdings Ltd ($8046) | 46.3% | 42.1% | 57.6% | 75.0% | |
| China Jinhai International Group Ltd ($139) | -92.8% | | -7.8% | 73.3% | -69.1% |
| PacMOS Technologies Holdings Ltd ($1010) | 68.1% | 68.8% | 65.7% | 65.7% | 57.5% |
| Intel Corp ($4335) | 62.5% | 62.1% | 59.8% | 63.7% | 62.6% |
| Hanergy Thin Film Power Group Ltd ($566) | 62.8% | 71.4% | 80.3% | 57.3% | |
| |
|---|
| Median (22 companies) | 18.0% | 22.1% | 23.7% | 29.5% | 31.0% |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 43.7% | 47.7% | 48.7% | 47.5% | 52.9% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 13.4% | 9.1% | 37.2% | 88.0% | |
| Hanergy Thin Film Power Group Ltd ($566) | 46.0% | 66.0% | 73.9% | 43.7% | |
| Intel Corp ($4335) | 43.6% | 41.5% | 38.6% | 42.8% | 41.0% |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -11.8% | 9.5% | 40.5% | |
| Semiconductor Manufacturing International Corp ($981) | 26.9% | 34.3% | 35.5% | 34.5% | 33.3% |
| |
|---|
| Median (22 companies) | 10.9% | 7.4% | 6.1% | -0.9% | 10.3% |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.4% | 26.5% | 23.9% | 25.4% | 26.8% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Jun Yang Solar Power Investments Ltd ($397) | 390.5% | 671.1% | 25.9% | 78.9% | |
| Han Tang International Holdings Ltd ($1187) | 1.8% | | | 55.2% | 0.3% |
| Semiconductor Manufacturing International Corp ($981) | 70.6% | 23.5% | 35.1% | 33.2% | 55.0% |
| Comtec Solar Systems Group Ltd ($712) | 22.2% | | 30.2% | 18.7% | |
| Intel Corp ($4335) | 19.9% | 20.7% | 20.3% | 18.1% | 13.2% |
| |
|---|
| Median (22 companies) | 10.6% | 4.4% | 4.1% | 5.7% | 6.3% |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 8.3% | 4.7% | 11.0% | 14.2% | 8.7% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| ASM Pacific Technology Ltd ($522) | 52.1% | 12.3% | 9.2% | 21.9% | 13.7% |
| Intel Corp ($4335) | 32.4% | 23.7% | 17.1% | 20.6% | 17.7% |
| Hanergy Thin Film Power Group Ltd ($566) | 9.3% | 14.1% | 15.1% | 19.3% | |
| Shunfeng International Clean Energy Ltd ($1165) | 5.9% | -13.0% | 1.5% | 17.4% | |
| Applied Materials Inc ($4336) | 25.6% | 4.0% | 4.6% | 15.9% | 15.2% |
| |
|---|
| Median (22 companies) | 1.7% | -2.2% | -0.4% | -0.5% | 0.9% |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | 22.2% | 25.5% | 22.7% | 21.1% | 20.9% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Ruifeng Renewable Energy Ltd ($527) | 4.0x | 16.4x | 6.9x | 4.9x | |
| Solargiga Energy Holdings Ltd ($757) | 5.9x | | 13.8x | 4.4x | |
| Shunfeng International Clean Energy Ltd ($1165) | 8.2x | | 25.8x | 3.4x | |
| Phoenitron Holdings Ltd ($8066) | -1.2x | -0.8x | | 3.2x | |
| Semiconductor Manufacturing International Corp ($981) | 1.9x | 1.3x | 1.0x | 1.0x | 0.5x |
| |
|---|
| Median (11 companies) | 0.0x | 0.3x | 0.7x | 0.5x | 0.1x |
|---|
| Shanghai Fudan Microelectronics Group Co Ltd ($1385) | -1.1x | -1.2x | -1.0x | -0.8x | -0.4x |
