Looking for fundamental growth story? Pay attention to Boer Power Holdings Ltd
06/04/2016 • About Boer Power Holdings Ltd (
$1685) • By InTwits
Boer Power Holdings Ltd is an attractive growth stock in Electrical Compo&Equip industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Boer Power Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 20.8% in FY2015. The growth also happened in EBITDA of 20.8% for the same period.
In the last 3 years Boer Power Holdings Ltd showed fast revenue growth of 26.5% from 2012 to 2015 annualy. EBITDA surged on 30.1% from 2012 to 2015 annualy.
Boer Power Holdings Ltd ($1685) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 1,015 | 1,221 | 1,354 | 2,048 | 2,474 |
|---|
| Revenue growth, % | | 20.4% | 10.9% | 51.3% | 20.8% |
|---|
| Gross margin, % | 37.1% | 36.8% | 36.0% | 35.3% | 35.7% |
|---|
| SG&A, % | 13.4% | 12.1% | 14.1% | 10.5% | 11.4% |
|---|
| EBITDA | 285 | 321 | 377 | 585 | 706 |
|---|
| EBITDA growth, % | | 12.7% | 17.4% | 55.2% | 20.8% |
|---|
| EBITDA margin, % | 28.1% | 26.3% | 27.8% | 28.5% | 28.6% |
|---|
| Net Income | 253 | 294 | 345 | 459 | 520 |
|---|
| Net Income margin, % | 24.9% | 24.1% | 25.5% | 22.4% | 21.0% |
|---|
| |
| CAPEX | 131 | 53 | 28 | 20 | 5 |
|---|
| CAPEX/Revenue, % | 13.0% | 4.37% | 2.07% | 0.983% | 0.202% |
|---|
| Debt | 38 | 0 | 430 | 671 | 1,852 |
|---|
| Cash | 653 | 382 | 852 | 666 | 155 |
|---|
| Net Debt/EBITDA | -2.2x | -1.2x | -1.1x | 0.0x | 2.4x |
|---|
| |
| ROIC, % | 18.2% | 18.0% | 17.0% | 21.2% | 19.5% |
|---|
| ROE, % | 17.6% | 18.1% | 18.7% | 22.1% | 23.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Boer Power Holdings Ltd's EBITDA margin showed almost no change on 0.100 pp from 28.5% to 28.6% in 2015. If we look for the longer period the company showed EBITDA margin growth of 2.30 pp from 26.3% in 2012 to 28.6% in 2015.
We call Boer Power Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 19.5%. During the last three years it increased - it was 18.0% in FY2012. It's average ROIC for the last three years was 19.2%.
Boer Power Holdings Ltd showed decline of 1.40 pp from 22.4% to 21% in 2015. In the last 3 years Boer Power Holdings Ltd's Net Income margin dropped on 3.10 pp from 24.1% in 2012 to 21% in 2015.
Boer Power Holdings Ltd operates at ROE of 23.7%. Average ROE for the last three years was 21.5%.
Capital expenditures (CAPEX)
In FY2015 Boer Power Holdings Ltd had CAPEX/Revenue of 0.202%. The company's CAPEX/Revenue dropped on 4.17 pp from 4.37% in 2012 to 0.202% in 2015. It's average CAPEX/Revenue for the last three years was 1.08%.
Leverage (Debt)
Boer Power Holdings Ltd has medium debt level at 2.4x Net Debt/EBITDA to maintain high growth. If we look for the longer period the company's leverage surged on 3.59x from -1.19x in 2012 to 2.40x in 2015.
Peers in Electrical Compo&Equip
Below you can find Boer Power Holdings Ltd benchmarking vs. other companies in Electrical Compo&Equip 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 |
|---|
| Applied Development Holdings Ltd ($519) | | -29.1% | | | 850.5% |
| FDG Electric Vehicles Ltd ($729) | | -23.1% | -7.0% | 54.0% | 270.8% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | | -12.0% | 8.7% | 44.1% | 69.8% |
| Sun King Power Electronics Group ($580) | | -6.0% | 29.0% | -30.1% | 51.2% |
| CEC International Holdings Ltd ($759) | | 23.9% | 60.8% | 43.0% | 32.3% |
| |
|---|
| Median (26 companies) | 13.4% | -6.0% | 8.5% | 15.5% | 4.6% |
|---|
| Boer Power Holdings Ltd ($1685) | | 20.4% | 10.9% | 51.3% | 20.8% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | 36.6% |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | 34.1% |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | 31.8% |
| Johnson Electric Holdings Ltd ($179) | 27.5% | 27.3% | 28.0% | 29.5% | 29.6% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 16.1% | 14.2% | 20.1% | 26.0% | 26.1% |
| |
|---|
| Median (31 companies) | 20.4% | 18.8% | 17.4% | 16.2% | 18.1% |
|---|
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | 35.7% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | 26.3% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | 13.2% |
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 9.4% | 11.2% | 10.8% | 13.5% | 9.6% |
| |
|---|
| Median (33 companies) | 10.7% | 7.8% | 7.0% | 3.8% | 6.0% |
|---|
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | 28.6% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | 89.8% |
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | 417.0% |
| Sun King Power Electronics Group ($580) | 9.2% | 16.5% | 7.7% | 15.5% | 1.6% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | 22.8% |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| |
|---|
| Median (33 companies) | 9.2% | 6.7% | 5.4% | 4.0% | 2.7% |
|---|
| Boer Power Holdings Ltd ($1685) | 13.0% | 4.4% | 2.1% | 1.0% | 0.2% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | 12.8% |
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | 12.0% |
| Wai Chi Holdings Co Ltd ($1305) | | | 10.4% | 9.8% | -0.3% |
| Hengxin Technology Ltd ($1085) | 13.9% | 8.1% | 9.3% | 9.0% | 10.2% |
| |
|---|
| Median (33 companies) | 5.4% | 2.7% | 3.0% | 0.7% | 2.9% |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | 19.5% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Wai Chi Holdings Co Ltd ($1305) | 3.1x | 3.4x | 3.1x | 2.0x | 11.8x |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 5.4x | 6.3x | 7.6x | 6.8x | 6.9x |
| Leoch International Technology Ltd ($842) | 3.4x | 9.3x | 16.3x | 4.7x | 5.0x |
| CEC International Holdings Ltd ($759) | 2.5x | 3.9x | 6.1x | 4.1x | 4.9x |
| Chaowei Power Holdings Ltd ($951) | 0.5x | 1.4x | 2.1x | 6.1x | 2.9x |
| |
|---|
| Median (21 companies) | 0.5x | 1.6x | 1.8x | 2.3x | 1.4x |
|---|
| Boer Power Holdings Ltd ($1685) | -2.2x | -1.2x | -1.1x | 0.0x | 2.4x |
