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China Packaging Holdings Development Ltd is an attractive growth stock: revenue grew 29.9% and EBITDA 31.0% annually over the last three years

04/04/2016 • About China Packaging Holdings Development Ltd ($1439) • By InTwits

Have you thought about China Packaging Holdings Development Ltd as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.

Growth story


China Packaging Holdings Development Ltd showed fast growth in the last financial year. China Packaging Holdings Development Ltd's revenue surged on 25.2% in FY2015. In addition to revenue China Packaging Holdings Development Ltd also keeps delivering EBITDA growth. It was 16.7% in FY2015

In the longer period the company showed fast revenue growth of 29.9% from 2012 to 2015 annualy. EBITDA surged on 31.0% from 2012 to 2015 annualy.

China Packaging Holdings Development Ltd ($1439) financials for the last 5 years

mln. CNY 2011 2012 2013 2014 2015
Revenue194281383492615
Revenue growth, %44.7%36.5%28.3%25.2%
Gross margin, %18.8%21.1%23.4%23.9%24.1%
SG&A, %8.46%8.39%9.80%9.59%9.18%
EBITDA2644658599
EBITDA growth, %66.3%47.0%31.1%16.7%
EBITDA margin, %13.6%15.7%16.9%17.2%16.1%
Net Income2034446255
Net Income margin, % 10.1%12.2%11.6%12.6%8.90%
 
CAPEX12046680
CAPEX/Revenue, %0.426%7.11%12.0%13.8%0.0192%
Debt15162112211
Cash11264692266
Net Debt/EBITDA0.1x-0.2x-0.4x-1.0x-0.6x
 
ROIC, %50.0%52.0%46.6%34.1%19.8%
ROE, %58.3%56.2%40.9%29.9%17.5%

Profitability and return on investment


EBITDA margin declined slightly from 17.2% in FY2014 to 16.1% in FY2015. If we look for the longer period EBITDA margin increased slightly on 0.400 pp from 15.7% in 2012 to 16.1% in 2015.

China Packaging Holdings Development Ltd shows attractive ROIC at 19.8% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 52.0%. For the last three years the average ROIC was 33.5%.

China Packaging Holdings Development Ltd showed big decline in Net Income margin of 3.70 pp from 12.6% to 8.90% in 2015. In the longer period China Packaging Holdings Development Ltd showed big decline in Net Income margin of 3.30 pp from 12.2% in 2012 to 8.90% in 2015.

China Packaging Holdings Development Ltd operates at ROE of 17.5%. Average ROE for the last three years was 29.4%.

Capital expenditures (CAPEX)


In FY2015 China Packaging Holdings Development Ltd had CAPEX/Revenue of 0.0192%. The company showed big decline in CAPEX/Revenue of 7.10 pp from 7.11% in 2012 to 0.0192% in 2015. For the last three years the average CAPEX/Revenue was 8.61%.

Leverage (Debt)


Having such a fast growth profile the company keeps negative net debt at -0.6x Net Debt/EBITDA. In the last 3 years leverage surged on 0.34x from -0.22x in 2012 to -0.56x in 2015.

Peers in Commercial Services


Below you can find China Packaging Holdings Development 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
China Smartpay Group Holdings Ltd ($8325)60.0%274.7%75.6%124.5%
Celebrate International Holdings Ltd ($8212)-90.1%1,437.6%-6.3%117.0%
Haier Healthwise Holdings Ltd ($348)-22.0%-50.1%-7.5%101.1%
CAR Inc ($699)96.4%68.0%30.3%42.1%
Fu Shou Yuan International Group Ltd ($1448)13.9%27.5%30.0%39.3%
 
Median (51 companies)36.1%8.8%4.7%9.4%5.8%
China Packaging Holdings Development Ltd ($1439)44.7%36.5%28.3%25.2%


Top companies by Gross margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Dingyi Group Investment Ltd ($508)76.5%75.8%64.5%86.0%
Fu Shou Yuan International Group Ltd ($1448)81.6%80.5%80.4%80.0%77.6%
U Banquet Group Holding Ltd ($8107)76.5%74.5%
Anxian Yuan China Holdings Ltd ($922)58.4%74.0%54.7%39.8%70.8%
China Communication Telecom Services Co Ltd ($8206)-56.6%61.6%58.6%69.1%70.2%
 
Median (46 companies)33.0%31.5%30.5%31.0%31.2%
China Packaging Holdings Development Ltd ($1439)18.8%21.1%23.4%23.9%24.1%


Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Zuoli Kechuang Micro-Finance Co Ltd ($6866)61.6%84.9%75.9%80.9%
Shenzhen International Holdings Ltd ($152)69.3%60.2%65.8%97.1%73.6%
Yuexiu Transport Infrastructure Ltd ($1052)74.3%78.3%74.5%74.0%71.6%
CAR Inc ($699)31.6%43.6%30.1%43.1%67.4%
Jiangsu Expressway Co Ltd ($177)60.8%57.0%60.7%59.3%61.5%
 
Median (51 companies)16.8%16.9%13.4%11.0%8.8%
China Packaging Holdings Development Ltd ($1439)13.6%15.7%16.9%17.2%16.1%


Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Blue Sky Power Holdings Ltd ($6828)11.5%21.3%9.0%13.9%47.4%
Shenzhen International Holdings Ltd ($152)28.3%23.0%22.1%20.9%35.0%
Celebrate International Holdings Ltd ($8212)140.9%211.7%12.0%6.2%34.2%
China Maple Leaf Educational Systems Ltd ($1317)39.5%25.7%50.9%21.1%32.8%
Qingdao Port International Co Ltd ($6198)29.5%31.9%28.7%8.5%28.2%
 
Median (51 companies)3.9%3.1%4.0%3.6%4.7%
China Packaging Holdings Development Ltd ($1439)0.4%7.1%12.0%13.8%0.0%


Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Wonderful Sky Financial Group Holdings Ltd ($1260)136.8%51.5%26.6%30.0%29.5%
1010 Printing Group Ltd ($1127)14.4%13.5%20.8%17.8%19.9%
CAR Inc ($699)5.2%2.7%12.2%19.0%
eprint Group Ltd ($1884)33.0%34.8%15.4%18.5%
Pico Far East Holdings Ltd ($752)18.8%16.7%12.3%14.3%17.4%
 
Median (51 companies)5.0%6.0%5.2%4.2%3.7%
China Packaging Holdings Development Ltd ($1439)50.0%52.0%46.6%34.1%19.8%


Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Celebrate International Holdings Ltd ($8212)22.2x
Eagle Legend Asia Ltd ($936)4.3x4.0x4.0x3.3x6.2x
Yuexiu Transport Infrastructure Ltd ($1052)2.9x4.5x3.1x2.7x5.3x
Dalian Port PDA Co Ltd ($2880)5.7x5.7x4.8x4.7x4.1x
Speedy Global Holdings Ltd ($540)-0.1x-0.3x-1.1x-0.3x3.6x
 
Median (33 companies)-0.1x-0.0x-0.8x-0.4x-0.5x
China Packaging Holdings Development Ltd ($1439)0.1x-0.2x-0.4x-1.0x-0.6x


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