Looking for growth stocks? Pay attention to Koradior Holdings Ltd
05/04/2016 • About Koradior Holdings Ltd (
$3709) • By InTwits
Koradior Holdings Ltd is a fast-growing stock in Apparel industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Koradior Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 23.9% in FY2015. EBITDA also increased considerably: 45.1% for the same period.
In the longer period Koradior Holdings Ltd showed fast revenue growth of 38.4% from 2012 to 2015 annualy. EBITDA surged on 80.7% from 2012 to 2015 annualy.
Koradior Holdings Ltd ($3709) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 327 | 485 | 702 | 1,037 | 1,285 |
|---|
| Revenue growth, % | | 48.3% | 44.7% | 47.7% | 23.9% |
|---|
| Gross margin, % | 63.5% | 62.8% | 69.3% | 73.3% | 73.7% |
|---|
| SG&A, % | 55.3% | 54.9% | 53.8% | 56.5% | 53.9% |
|---|
| EBITDA | 39 | 51 | 128 | 208 | 301 |
|---|
| EBITDA growth, % | | 31.0% | 150.0% | 62.6% | 45.1% |
|---|
| EBITDA margin, % | 11.9% | 10.5% | 18.2% | 20.0% | 23.5% |
|---|
| Net Income | 19 | 28 | 80 | 128 | 204 |
|---|
| Net Income margin, % | 5.94% | 5.74% | 11.4% | 12.4% | 15.9% |
|---|
| |
| CAPEX | 14 | 15 | 24 | 32 | 98 |
|---|
| CAPEX/Revenue, % | 4.40% | 2.99% | 3.44% | 3.08% | 7.60% |
|---|
| Debt | 30 | 30 | 55 | 50 | 80 |
|---|
| Cash | 6 | 14 | 77 | 428 | 437 |
|---|
| Net Debt/EBITDA | 0.6x | 0.3x | -0.2x | -1.8x | -1.2x |
|---|
| |
| ROIC, % | | 45.2% | 69.5% | 36.5% | 31.0% |
|---|
| ROE, % | | 58.4% | 79.6% | 30.6% | 27.3% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Koradior Holdings Ltd showed fast EBITDA margin growth of 3.50 pp from 20% to 23.5% in 2015. If we look for the longer period Koradior Holdings Ltd showed fast EBITDA margin growth of 13 pp from 10.5% in 2012 to 23.5% in 2015.
Koradior Holdings Ltd shows attractive ROIC at 31.0% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 45.2%. It's average level of ROIC for the last three years was 45.7%.
Net Income margin surged on 3.50 pp from 12.4% to 15.9% in 2015. If we look for the longer period Koradior Holdings Ltd showed fast Net Income margin growth of 10.2 pp from 5.70% in 2012 to 15.9% in 2015.
Koradior Holdings Ltd operates at ROE of 27.3%. For the last three years the average ROE was 45.8%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.Koradior Holdings Ltd's CAPEX/Revenue was 7.60% in FY2015. Koradior Holdings Ltd showed fast CAPEX/Revenue growth of 4.60 pp from 2.99% in 2012 to 7.60% in 2015. For the last three years the average CAPEX/Revenue was 4.70%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -1.2x Net Debt/EBITDA. If we look for the longer period leverage dropped on 1.49x from 0.31x in 2012 to -1.18x in 2015.
Peers in Apparel
Below we provide Koradior Holdings Ltd benchmarking against other companies in Apparel 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 |
|---|
| 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% |
| Kingmaker Footwear Holdings Ltd ($1170) | | 10.0% | 9.3% | 6.3% | 23.7% |
| Cosmo Lady China Holdings Co Ltd ($2298) | | 36.3% | 29.2% | 37.4% | 23.6% |
| 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% |
|---|
| Koradior Holdings Ltd ($3709) | | 48.3% | 44.7% | 47.7% | 23.9% |
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% |
| 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% |
| S Culture International Holdings Ltd ($1255) | 62.8% | 64.7% | 63.7% | 62.9% | 61.9% |
| |
|---|
| Median (44 companies) | 24.3% | 24.8% | 23.4% | 24.8% | 25.6% |
|---|
| Koradior Holdings Ltd ($3709) | 63.5% | 62.8% | 69.3% | 73.3% | 73.7% |
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% |
|---|
| Koradior Holdings Ltd ($3709) | 11.9% | 10.5% | 18.2% | 20.0% | 23.5% |
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% | 3.0% | 2.1% | 2.1% |
|---|
| Koradior Holdings Ltd ($3709) | 4.4% | 3.0% | 3.4% | 3.1% | 7.6% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Cosmo Lady China Holdings Co Ltd ($2298) | | 41.7% | 56.0% | 38.6% | 27.8% |
| 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% |
|---|
| Koradior Holdings Ltd ($3709) | | 45.2% | 69.5% | 36.5% | 31.0% |
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) | -0.6x | -0.4x | -0.7x | -0.3x | -1.0x |
|---|
| Koradior Holdings Ltd ($3709) | 0.6x | 0.3x | -0.2x | -1.8x | -1.2x |
