Cosmo Lady China Holdings Co Ltd's growth is outstanding: revenue grew 29.9% and EBITDA 40.7% annually over the last three years
05/04/2016 • About Cosmo Lady China Holdings Co Ltd (
$2298) • By InTwits
Have you thought about Cosmo Lady China Holdings Co Ltd as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Cosmo Lady China Holdings Co Ltd showed fast growth in the last financial year. The company's revenue surged on 23.6% in FY2015. The growth also happened in EBITDA of 24.5% for the same period.
In the longer period Cosmo Lady China Holdings Co Ltd showed fast revenue growth of 29.9% from 2012 to 2015 annualy. EBITDA surged on 40.7% from 2012 to 2015 annualy.
Cosmo Lady China Holdings Co Ltd ($2298) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 1,656 | 2,258 | 2,916 | 4,008 | 4,953 |
|---|
| Revenue growth, % | | 36.3% | 29.2% | 37.4% | 23.6% |
|---|
| Gross margin, % | 24.2% | 27.3% | 36.7% | 39.1% | 42.7% |
|---|
| SG&A, % | 11.2% | 16.4% | 24.2% | 26.0% | 29.0% |
|---|
| EBITDA | 231 | 272 | 401 | 609 | 758 |
|---|
| EBITDA growth, % | | 17.4% | 47.6% | 51.7% | 24.5% |
|---|
| EBITDA margin, % | 14.0% | 12.0% | 13.8% | 15.2% | 15.3% |
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| Net Income | 169 | 193 | 276 | 425 | 540 |
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| Net Income margin, % | 10.2% | 8.54% | 9.45% | 10.6% | 10.9% |
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| |
| CAPEX | 80 | 102 | 55 | 133 | 193 |
|---|
| CAPEX/Revenue, % | 4.85% | 4.51% | 1.87% | 3.32% | 3.90% |
|---|
| Debt | 27 | 27 | 0 | 0 | 0 |
|---|
| Cash | 162 | 180 | 290 | 921 | 951 |
|---|
| Net Debt/EBITDA | -0.6x | -0.6x | -0.7x | -1.5x | -1.3x |
|---|
| |
| ROIC, % | | 41.7% | 56.0% | 38.6% | 27.8% |
|---|
| ROE, % | | 33.0% | 42.6% | 29.1% | 22.1% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. The company showed small growth in EBITDA margin of 0.100 pp from 15.2% to 15.3% in 2015. If we look for the longer period the company showed fast EBITDA margin growth of 3.30 pp from 12% in 2012 to 15.3% in 2015.
We call Cosmo Lady China Holdings Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 27.8%. During the last three years it dropped - it was 41.7% in FY2012. It's average level of ROIC for the last three years was 40.8%.
Cosmo Lady China Holdings Co Ltd showed small growth in Net Income margin of 0.300 pp from 10.6% to 10.9% in 2015. If we look for the longer period Net Income margin surged on 2.40 pp from 8.50% in 2012 to 10.9% in 2015.
Cosmo Lady China Holdings Co Ltd operates at ROE of 22.1%. Average ROE for the last three years was 31.3%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 3.90% in FY2015. The company's CAPEX/Revenue dropped on 0.612 pp from 4.51% in 2012 to 3.90% in 2015. Average CAPEX/Revenue for the last three years was 3.03%.
Leverage (Debt)
Cosmo Lady China Holdings Co Ltd has negative net debt at -1.3x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company's leverage surged on 0.69x from -0.56x in 2012 to -1.25x in 2015.
Peers in Apparel
Below you can find Cosmo Lady China Holdings Co Ltd benchmarking vs. other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | | -94.0% | 46.8% | 20.4% | 33.1% |
| Highlight China IoT International Ltd ($1682) | | 0.8% | 17.7% | -73.7% | 29.6% |
| Koradior Holdings Ltd ($3709) | | 48.3% | 44.7% | 47.7% | 23.9% |
| Kingmaker Footwear Holdings Ltd ($1170) | | 10.0% | 9.3% | 6.3% | 23.7% |
| Cabbeen Fashion Ltd ($2030) | | 5.6% | 0.4% | 16.4% | 23.5% |
| |
|---|
| Median (45 companies) | 23.8% | 5.4% | 4.8% | 5.3% | -1.0% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | | 36.3% | 29.2% | 37.4% | 23.6% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 15.4% | 38.5% | 42.3% | 59.6% | 75.6% |
| Koradior Holdings Ltd ($3709) | 63.5% | 62.8% | 69.3% | 73.3% | 73.7% |
| Prada SpA ($1913) | 67.8% | 71.5% | 72.1% | 73.8% | 71.8% |
| China Outfitters Holdings Ltd ($1146) | 76.1% | 74.9% | 74.3% | 70.0% | 65.7% |
| Crocodile Garments ($122) | 65.5% | 64.7% | 60.7% | 60.4% | 62.1% |
| |
|---|
| Median (44 companies) | 24.6% | 24.8% | 23.4% | 24.8% | 25.6% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | 24.2% | 27.3% | 36.7% | 39.1% | 42.7% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Lilang Ltd ($1234) | 26.7% | 26.3% | 26.9% | 29.4% | 30.6% |
| Cabbeen Fashion Ltd ($2030) | 16.0% | 25.0% | 29.7% | 28.4% | 29.0% |
| Fuguiniao Co Ltd ($1819) | 22.2% | 24.5% | 26.1% | 26.7% | 27.9% |
| Prada SpA ($1913) | 25.9% | 29.6% | 31.7% | 31.7% | 26.8% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.8% | 26.4% | 26.2% | 26.1% | 26.7% |
| |
|---|
| Median (45 companies) | 10.4% | 10.4% | 9.7% | 6.8% | 6.8% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | 14.0% | 12.0% | 13.8% | 15.2% | 15.3% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 14.9% | 136.9% | 70.3% | 13.5% | 28.5% |
| Shenzhou International Group Holdings Ltd ($2313) | 4.7% | 7.3% | 7.9% | 10.2% | 16.1% |
| Crocodile Garments ($122) | 12.5% | 20.1% | 22.1% | 1.8% | 13.5% |
| Texhong Textile Group Ltd ($2678) | 6.7% | 8.9% | 11.8% | 5.8% | 10.5% |
| Prada SpA ($1913) | 9.2% | 9.7% | 10.6% | 15.3% | 10.2% |
| |
|---|
| Median (44 companies) | 1.9% | 2.2% | 3.1% | 2.1% | 2.1% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | 4.8% | 4.5% | 1.9% | 3.3% | 3.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Koradior Holdings Ltd ($3709) | | 45.2% | 69.5% | 36.5% | 31.0% |
| Cabbeen Fashion Ltd ($2030) | 25.7% | 32.3% | 32.9% | 26.5% | 27.0% |
| Sitoy Group Holdings Ltd ($1023) | 62.1% | 39.3% | 28.7% | 31.8% | 22.0% |
| Prada SpA ($1913) | 24.6% | 32.1% | 37.4% | 34.0% | 21.9% |
| China Lilang Ltd ($1234) | 32.6% | 27.3% | 19.1% | 19.7% | 20.2% |
| |
|---|
| Median (45 companies) | 12.1% | 9.4% | 7.1% | 4.1% | 5.4% |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | | 41.7% | 56.0% | 38.6% | 27.8% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| S Culture International Holdings Ltd ($1255) | 0.8x | 1.4x | 0.7x | 2.4x | 158.1x |
| Global Brands Group Holding Ltd ($787) | -0.3x | -0.4x | -0.3x | 1.3x | 2.1x |
| Fuguiniao Co Ltd ($1819) | 0.9x | -0.0x | -0.7x | 0.3x | 1.9x |
| Texhong Textile Group Ltd ($2678) | 3.9x | 1.4x | 1.3x | 2.3x | 1.4x |
| China Outfitters Holdings Ltd ($1146) | -1.9x | -0.6x | -0.7x | 1.6x | 1.3x |
| |
|---|
| Median (34 companies) | -0.5x | -0.3x | -0.7x | -0.3x | -1.0x |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | -0.6x | -0.6x | -0.7x | -1.5x | -1.3x |
