The numbers tell that Jiashili Group Ltd's growth is outstanding
07/04/2016 • About Jiashili Group Ltd (
$1285) • By InTwits
Jiashili Group Ltd is a fast-growing stock in Food industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Jiashili Group Ltd showed fast growth in the last financial year. Jiashili Group Ltd's revenue surged on 19.8% in FY2015. The growth also happened in EBITDA of 41.4% for the same period.
In the longer period the company showed fast revenue growth of 15.7% from 2012 to 2015 annualy. EBITDA surged on 34.7% from 2012 to 2015 annualy.
Jiashili Group Ltd ($1285) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 565 | 649 | 748 | 840 | 1,006 |
|---|
| Revenue growth, % | | 14.9% | 15.1% | 12.3% | 19.8% |
|---|
| Gross margin, % | 23.4% | 25.5% | 30.2% | 32.0% | 35.0% |
|---|
| SG&A, % | 14.3% | 15.2% | 15.7% | 16.7% | 18.6% |
|---|
| EBITDA | 38 | 62 | 94 | 108 | 152 |
|---|
| EBITDA growth, % | | 62.9% | 51.3% | 14.2% | 41.4% |
|---|
| EBITDA margin, % | 6.77% | 9.60% | 12.6% | 12.8% | 15.1% |
|---|
| Net Income | 28 | 43 | 69 | 72 | 105 |
|---|
| Net Income margin, % | 5.04% | 6.69% | 9.26% | 8.53% | 10.5% |
|---|
| |
| CAPEX | 19 | 63 | 77 | 50 | 41 |
|---|
| CAPEX/Revenue, % | 3.32% | 9.65% | 10.2% | 5.97% | 4.06% |
|---|
| Debt | 4 | 13 | 40 | 1 | 134 |
|---|
| Cash | 18 | 51 | 70 | 298 | 510 |
|---|
| Net Debt/EBITDA | -0.4x | -0.6x | -0.3x | -2.8x | -2.5x |
|---|
| |
| ROIC, % | | 45.6% | 51.8% | 27.8% | 22.2% |
|---|
| ROE, % | | 42.4% | 54.9% | 23.2% | 20.4% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin surged on 2.30 pp from 12.8% to 15.1% in 2015. In the longer period the company showed fast EBITDA margin growth of 5.50 pp from 9.60% in 2012 to 15.1% in 2015.
We call Jiashili Group Ltd an attractive growth stock as together with the growth it delivers high ROIC at 22.2%. During the last three years it dropped - it was 45.6% in FY2012. Average ROIC for the last three years was 33.9%.
The company showed fast Net Income margin growth of 2 pp from 8.50% to 10.5% in 2015. If we look for the longer period Jiashili Group Ltd showed fast Net Income margin growth of 3.80 pp from 6.70% in 2012 to 10.5% in 2015.
Jiashili Group Ltd operates at ROE of 20.4%. It's average level of ROE for the last three years was 32.8%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 4.06%. Jiashili Group Ltd showed big decline in CAPEX/Revenue of 5.59 pp from 9.65% in 2012 to 4.06% in 2015. Average CAPEX/Revenue for the last three years was 6.76%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -2.5x Net Debt/EBITDA. In the longer period Jiashili Group Ltd's leverage surged on 1.87x from -0.60x in 2012 to -2.47x in 2015.
Peers in Food
Below you can find Jiashili Group Ltd benchmarking vs. other companies in Food 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 |
|---|
| Imperial Pacific International Holdings Ltd ($1076) | | -27.6% | -18.5% | 2.7% | 70.3% |
| China Shengmu Organic Milk Ltd ($1432) | | 80.0% | 63.2% | 86.4% | 45.4% |
| Chinese Food and Beverage Group ($8272) | | 207.7% | 149.2% | 26.8% | 31.6% |
| Huisheng International Holdings Ltd ($1340) | | -2.4% | 5.6% | 8.7% | 25.9% |
| Honworld Group Ltd ($2226) | | 207.9% | 57.3% | 26.0% | 19.5% |
| |
|---|
| Median (40 companies) | 21.6% | 10.2% | 8.7% | 4.9% | -2.9% |
|---|
| Jiashili Group Ltd ($1285) | | 14.9% | 15.1% | 12.3% | 19.8% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Hung Fook Tong Group Holdings Ltd ($1446) | 57.0% | 60.7% | 60.0% | 58.7% | 60.7% |
| Honworld Group Ltd ($2226) | 42.2% | 57.2% | 59.0% | 57.8% | 56.4% |
| Yashili International Holdings Ltd ($1230) | 52.0% | 53.7% | 53.5% | 51.2% | 50.8% |
| Natural Dairy NZ Holdings Ltd ($462) | 16.3% | -13.7% | 27.5% | 48.8% | 49.6% |
| China Shengmu Organic Milk Ltd ($1432) | 29.4% | 33.4% | 42.9% | 50.2% | 47.7% |
| |
|---|
| Median (39 companies) | 18.5% | 16.5% | 19.9% | 20.1% | 23.7% |
|---|
| Jiashili Group Ltd ($1285) | 23.4% | 25.5% | 30.2% | 32.0% | 35.0% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Shenguan Holdings Group Ltd ($829) | 57.2% | 58.7% | 59.2% | 54.5% | 43.6% |
| Honworld Group Ltd ($2226) | 28.4% | 44.4% | 42.1% | 42.0% | 42.9% |
| China Shengmu Organic Milk Ltd ($1432) | 58.7% | 31.5% | 38.3% | 47.1% | 41.9% |
| China Huishan Dairy Holdings Co Ltd ($6863) | 109.2% | 45.1% | 47.9% | 47.1% | 37.2% |
| YuanShengTai Dairy Farm Ltd ($1431) | 147.8% | 40.3% | 48.4% | 47.1% | 35.4% |
| |
|---|
| Median (39 companies) | 8.6% | 8.0% | 6.8% | 7.7% | 8.0% |
|---|
| Jiashili Group Ltd ($1285) | 6.8% | 9.6% | 12.6% | 12.8% | 15.1% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China Huishan Dairy Holdings Co Ltd ($6863) | 453.6% | 98.2% | 29.8% | 132.0% | 109.8% |
| Imperial Pacific International Holdings Ltd ($1076) | 0.0% | 0.0% | 0.0% | 15.6% | 88.5% |
| China Modern Dairy Holdings Ltd ($1117) | 58.9% | 50.6% | | 18.7% | 42.4% |
| Labixiaoxin Snacks Group Ltd ($1262) | 23.0% | 13.3% | 10.3% | 14.6% | 32.0% |
| YuanShengTai Dairy Farm Ltd ($1431) | 182.5% | 26.1% | 18.3% | 43.4% | 30.1% |
| |
|---|
| Median (38 companies) | 4.4% | 5.5% | 5.4% | 5.1% | 5.4% |
|---|
| Jiashili Group Ltd ($1285) | 3.3% | 9.6% | 10.2% | 6.0% | 4.1% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Want Want China Holdings Ltd ($151) | 24.9% | 27.9% | 29.4% | 22.8% | 21.8% |
| China Shengmu Organic Milk Ltd ($1432) | | 16.4% | 19.6% | 22.5% | 17.3% |
| Honworld Group Ltd ($2226) | 22.1% | 50.4% | 44.5% | 23.6% | 16.5% |
| WH Group Ltd ($288) | | 20.3% | 3.6% | 15.0% | 13.3% |
| Tenwow International Holdings Ltd ($1219) | 20.3% | 19.7% | 15.7% | 12.8% | 11.9% |
| |
|---|
| Median (41 companies) | 11.4% | 7.8% | 6.9% | 6.4% | 5.6% |
|---|
| Jiashili Group Ltd ($1285) | | 45.6% | 51.8% | 27.8% | 22.2% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Ausnutria Dairy Corp Ltd ($1717) | -3.5x | -1.4x | 0.8x | 1.7x | 27.9x |
| Beijing Jingkelong Co Ltd ($814) | 3.4x | 5.0x | 4.8x | 5.3x | 9.3x |
| First Pacific Co Ltd/Hong Kong ($142) | 1.3x | 1.8x | 3.8x | 4.5x | 5.6x |
| China Kangda Food Co Ltd ($834) | 2.1x | 2.8x | 2.5x | 2.3x | 5.4x |
| China Modern Dairy Holdings Ltd ($1117) | 1.3x | 3.7x | 5.2x | 4.1x | 5.3x |
| |
|---|
| Median (31 companies) | 0.4x | -0.1x | 0.8x | 0.8x | 1.3x |
|---|
| Jiashili Group Ltd ($1285) | -0.4x | -0.6x | -0.3x | -2.8x | -2.5x |
