Nanjing Sinolife United Co Ltd demonstrates fast growth
05/04/2016 • About Nanjing Sinolife United Co Ltd (
$3332) • By InTwits
Nanjing Sinolife United Co Ltd is an attractive growth stock in Retail industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Nanjing Sinolife United Co Ltd showed growth in the last financial year. Nanjing Sinolife United Co Ltd's revenue surged on 57.3% in FY2015. Together with revenue growth Nanjing Sinolife United Co Ltd also managed to keep EBITDA growth. EBITDA grew 29.6% for the same period.
In the last 3 years the company showed fast revenue growth of 38.2% from 2012 to 2015 annualy. EBITDA surged on 31.9% from 2012 to 2015 annualy.
Nanjing Sinolife United Co Ltd ($3332) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 103 | 150 | 195 | 252 | 397 |
|---|
| Revenue growth, % | | 45.6% | 29.5% | 29.6% | 57.3% |
|---|
| Gross margin, % | 80.6% | 86.5% | 89.3% | 90.9% | 80.6% |
|---|
| SG&A, % | 35.2% | 36.4% | 34.3% | 38.5% | 37.7% |
|---|
| EBITDA | 49 | 78 | 111 | 137 | 178 |
|---|
| EBITDA growth, % | | 57.4% | 42.7% | 24.0% | 29.6% |
|---|
| EBITDA margin, % | 47.8% | 51.6% | 56.9% | 54.4% | 44.8% |
|---|
| Net Income | 35 | 57 | 71 | 108 | 136 |
|---|
| Net Income margin, % | 33.7% | 38.1% | 36.3% | 42.7% | 34.3% |
|---|
| |
| CAPEX | 0 | 2 | 3 | 10 | 18 |
|---|
| CAPEX/Revenue, % | 0.238% | 1.59% | 1.51% | 4.01% | 4.50% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 56 | 84 | 145 | 329 | 312 |
|---|
| Net Debt/EBITDA | -1.1x | -1.1x | -1.3x | -2.4x | -1.8x |
|---|
| |
| ROIC, % | 57.4% | 67.3% | 68.1% | 32.2% | 24.8% |
|---|
| ROE, % | 44.7% | 53.3% | 46.7% | 26.6% | 21.1% |
|---|
Profitability and return on investment
EBITDA margin declined noticeably from 54.4% in FY2014 to 44.8% in FY2015. In the last 3 years Nanjing Sinolife United Co Ltd showed big decline in EBITDA margin of 6.80 pp from 51.6% in 2012 to 44.8% in 2015.
We call Nanjing Sinolife United Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 24.8%. Three years ago it was considerably higher at 67.3%. For the last three years the average ROIC was 41.7%.
The company showed big decline in Net Income margin of 8.40 pp from 42.7% to 34.3% in 2015. In the last 3 years the company showed decline of 3.80 pp from 38.1% in 2012 to 34.3% in 2015.
Nanjing Sinolife United Co Ltd operates at ROE of 21.1%. For the last three years the average ROE was 31.4%.
Capital expenditures (CAPEX)
In FY2015 Nanjing Sinolife United Co Ltd had CAPEX/Revenue of 4.50%. CAPEX/Revenue surged on 2.91 pp from 1.59% in 2012 to 4.50% in 2015. For the last three years the average CAPEX/Revenue was 3.34%.
Leverage (Debt)
Nanjing Sinolife United Co Ltd has negative net debt at -1.8x Net Debt/EBITDA - at the same time with high growth. In the longer period the company's leverage surged on 0.67x from -1.08x in 2012 to -1.75x in 2015.
Peers in Retail
Below we provide Nanjing Sinolife United Co Ltd benchmarking against other companies in Retail 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 |
|---|
| China Nuclear Industry 23 International Corp Ltd ($611) | | 1.4% | 85.6% | -42.1% | 419.8% |
| Noble House China Holdings Ltd ($8246) | | -5.0% | -20.2% | -24.8% | 117.2% |
| Vongroup Ltd ($318) | | -46.9% | 23.7% | -80.2% | 90.3% |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 54.9% | 72.8% | 23.0% | 48.3% |
| Unlimited Creativity Holdings Ltd ($8377) | | -17.7% | -35.3% | 23.7% | 40.8% |
| |
|---|
| Median (95 companies) | 28.7% | 10.5% | 6.1% | 3.1% | -0.7% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | | 45.6% | 29.5% | 29.6% | 57.3% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Moiselle International Holdings Ltd ($130) | 81.4% | 81.2% | 83.8% | 80.6% | 83.2% |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | 81.6% |
| Ports Design Ltd ($589) | 82.1% | 81.9% | 81.2% | 80.8% | 80.4% |
| |
|---|
| Median (84 companies) | 38.8% | 36.7% | 36.4% | 35.3% | 41.3% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | 80.6% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | 41.4% |
| Maoye International Holdings Ltd ($848) | 45.5% | 47.4% | 46.3% | 73.2% | 39.6% |
| Intime Retail Group Co Ltd ($1833) | 36.0% | 36.7% | 55.4% | 36.2% | 35.7% |
| ANTA Sports Products Ltd ($2020) | 23.6% | 21.9% | 23.3% | 24.4% | 25.9% |
| |
|---|
| Median (95 companies) | 13.1% | 9.7% | 7.3% | 8.8% | 7.1% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | 44.8% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Culture Landmark Investment Ltd ($674) | 4.6% | 11.6% | 19.4% | 15.7% | 47.2% |
| Springland International Holdings Ltd ($1700) | 20.7% | 31.9% | 17.4% | 26.5% | 36.9% |
| Merry Garden Holdings Ltd ($1237) | 22.7% | 18.6% | 28.6% | 15.1% | 34.2% |
| Future Bright Holdings Ltd ($703) | 6.2% | 2.6% | 3.7% | 36.8% | 24.9% |
| Parkson Retail Group Ltd ($3368) | 8.9% | 7.5% | 9.7% | 6.7% | 20.8% |
| |
|---|
| Median (95 companies) | 3.9% | 4.0% | 3.6% | 3.5% | 3.1% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 0.2% | 1.6% | 1.5% | 4.0% | 4.5% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Noble House China Holdings Ltd ($8246) | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% |
| Fairwood Holdings Ltd ($52) | 27.4% | 28.0% | 29.1% | 28.6% | 32.1% |
| |
|---|
| Median (95 companies) | 16.6% | 12.3% | 8.3% | 8.4% | 5.8% |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | 57.4% | 67.3% | 68.1% | 32.2% | 24.8% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| Trinity Ltd ($891) | -0.6x | -0.2x | 0.2x | 0.6x | 18.2x |
| Parkson Retail Group Ltd ($3368) | 0.4x | 0.8x | 2.3x | 3.6x | 9.8x |
| Maoye International Holdings Ltd ($848) | 1.7x | 2.9x | 3.3x | 3.4x | 9.0x |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| |
|---|
| Median (74 companies) | -0.8x | -0.5x | -0.8x | -0.2x | -0.5x |
|---|
| Nanjing Sinolife United Co Ltd ($3332) | -1.1x | -1.1x | -1.3x | -2.4x | -1.8x |
