Zuoli Kechuang Micro-Finance Co Ltd is an attractive growth stock: revenue grew 51.2% and EBITDA 65.6% annually over the last three years
30/03/2016 • About Zuoli Kechuang Micro-Finance Co Ltd (
$6866) • By InTwits
Zuoli Kechuang Micro-Finance Co Ltd is an attractive growth stock in Commercial Services industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Zuoli Kechuang Micro-Finance Co Ltd showed growth in the last financial year. The company's revenue surged on 37.2% in FY2015. The growth also happened in EBITDA of 46.4% for the same period.
In the longer period Zuoli Kechuang Micro-Finance Co Ltd showed fast revenue growth of 51.2% from 2012 to 2015 annualy. EBITDA surged on 65.6% from 2012 to 2015 annualy.
Zuoli Kechuang Micro-Finance Co Ltd ($6866) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 0 | 72 | 96 | 180 | 247 |
|---|
| Revenue growth, % | | -100.0% | 34.6% | 86.9% | 37.2% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 0 | 44 | 82 | 137 | 200 |
|---|
| EBITDA growth, % | | -100.0% | 85.8% | 67.0% | 46.4% |
|---|
| EBITDA margin, % | | 61.6% | 84.9% | 75.9% | 80.9% |
|---|
| Net Income | 0 | 26 | 52 | 93 | 146 |
|---|
| Net Income margin, % | | 36.6% | 53.5% | 51.8% | 59.1% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 1 | 3 |
|---|
| CAPEX/Revenue, % | | 0.0642% | 0.0311% | 0.389% | 1.23% |
|---|
| Debt | 26 | 120 | 171 | 175 | 100 |
|---|
| Cash | 10 | 20 | 81 | 24 | 83 |
|---|
| Net Debt/EBITDA | | 2.3x | 1.1x | 1.1x | 0.1x |
|---|
| |
| ROIC, % | | 9.8% | 10.9% | 12.7% | 14.0% |
|---|
| ROE, % | | 9.5% | 11.0% | 12.0% | 12.4% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. The company's EBITDA margin increased on 5 pp from 75.9% to 80.9% in 2015. In the last 3 years the company's EBITDA margin surged on 19.3 pp from 61.6% in 2012 to 80.9% in 2015.
Zuoli Kechuang Micro-Finance Co Ltd shows attractive ROIC at 14.0% for the last 12 months which assumes stable development model. During the last three years it surged - it was 9.84% in FY2012. Average ROIC for the last three years was 12.5%.
The company showed fast Net Income margin growth of 7.30 pp from 51.8% to 59.1% in 2015. In the longer period Zuoli Kechuang Micro-Finance Co Ltd's Net Income margin surged on 22.5 pp from 36.6% in 2012 to 59.1% in 2015.
Zuoli Kechuang Micro-Finance Co Ltd operates at ROE of 12.4%. It's average ROE for the last three years was 11.8%.
Capital expenditures (CAPEX)
In FY2015 Zuoli Kechuang Micro-Finance Co Ltd had CAPEX/Revenue of 1.23%. Zuoli Kechuang Micro-Finance Co Ltd's CAPEX/Revenue surged on 1.17 pp from 0.0642% in 2012 to 1.23% in 2015. Average CAPEX/Revenue for the last three years was 0.551%.
Leverage (Debt)
Zuoli Kechuang Micro-Finance Co Ltd has low debt level at 0.1x Net Debt/EBITDA - at the same time with high growth. In the longer period the company's leverage dropped on 2.19x from 2.28x in 2012 to 0.09x in 2015.
Peers in Commercial Services
Below you can find Zuoli Kechuang Micro-Finance Co Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | | -61.9% | -27.8% | 2,912.9% | 19.7% |
| 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 (61 companies) | 23.2% | 8.8% | 4.7% | 8.9% | 6.3% |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | | 34.6% | 86.9% | 37.2% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| 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% |
| |
|---|
| Median (57 companies) | 32.9% | 31.4% | 29.9% | 30.9% | 28.7% |
|---|
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% | 73.6% |
| 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 (61 companies) | 16.8% | 16.1% | 13.5% | 11.1% | 5.4% |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 61.6% | 84.9% | 75.9% | 80.9% |
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 (60 companies) | 3.9% | 3.2% | 4.2% | 4.4% | 2.8% |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 0.1% | 0.0% | 0.4% | 1.2% |
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 (61 companies) | 5.1% | 6.0% | 4.9% | 3.2% | 2.2% |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 9.8% | 10.9% | 12.7% | 14.0% |
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 | 6.2x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (40 companies) | -0.1x | -0.0x | -0.7x | -0.7x | -1.3x |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 2.3x | 1.1x | 1.1x | 0.1x |
