Looking for a profitable fast-growing stock? Look at JC Group Holdings Ltd
30/06/2016 • About JC Group Holdings Ltd (
$8326) • By InTwits
Have you thought about JC Group Holdings Ltd as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
JC Group Holdings Ltd showed growth in the last financial year. JC Group Holdings Ltd's revenue surged on 58.1% in FY2016. Together with revenue growth JC Group Holdings Ltd also managed to keep EBITDA growth. EBITDA grew 21.4% for the same period.
In the longer period JC Group Holdings Ltd showed fast revenue growth of 17.8% from FY2013 to FY2016 annualy. EBITDA surged on 5.64% from FY2013 to FY2016 annualy.
JC Group Holdings Ltd ($8326) financials for the last 5 years
| mln. | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 260 | 246 | 239 | 255 | 403 |
|---|
| Revenue growth, % | | -5.5% | -3.0% | 6.7% | 58.1% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 84 | 77 | 68 | 75 | 91 |
|---|
| EBITDA growth, % | | -7.8% | -11.9% | 10.1% | 21.4% |
|---|
| EBITDA margin, % | 32.1% | 31.3% | 28.5% | 29.4% | 22.6% |
|---|
| Net Income | 14 | 10 | -6 | 1 | 5 |
|---|
| Net Income margin, % | 5.19% | 4.05% | -2.50% | 0.212% | 1.26% |
|---|
| |
| CAPEX | 5 | 4 | 16 | 10 | 11 |
|---|
| CAPEX/Revenue, % | 1.79% | 1.64% | 6.88% | 3.83% | 2.64% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 11 | 15 | 46 | 50 | 22 |
|---|
| Net Debt/EBITDA | -0.1x | -0.2x | -0.7x | -0.7x | -0.2x |
|---|
| |
| ROIC, % | | 215.6% | 92.8% | 66.3% | 81.7% |
|---|
| ROE, % | | 62.7% | -12.5% | 0.7% | 6.1% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined noticeably from 29.4% in FY2015 to 22.6% in FY2016. In the last 3 years EBITDA margin dropped on 8.70 pp from 31.3% in FY2013 to 22.6% in FY2016.
We call JC Group Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 81.7%. During the last three years it dropped - it was 216% in FY2013. It's average level of ROIC for the last three years was 80.2%.
JC Group Holdings Ltd showed fast Net Income margin growth of 1.10 pp from 0.200% to 1.30% in FY2016. If we look for the longer period the company's Net Income margin dropped on 2.80 pp from 4.10% in FY2013 to 1.30% in FY2016.
JC Group Holdings Ltd operates at ROE of 6.10%. It's average level of ROE for the last three years was -1.91%.
Capital expenditures (CAPEX)
In FY2016 JC Group Holdings Ltd had CAPEX/Revenue of 2.64%. The company showed fast CAPEX/Revenue growth of 1.00 pp from 1.64% in FY2013 to 2.64% in FY2016. For the last three years the average CAPEX/Revenue was 4.45%.
Leverage (Debt)
The company has negative net debt at -0.2x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 0.04x from -0.20x in FY2013 to -0.24x in FY2016.
Peers in Retail
Below you can find JC Group Holdings Ltd benchmarking vs. other companies in Retail 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Nanjing Sinolife United Co Ltd ($3332) | 45.6% | 29.5% | 29.6% | 57.3% | |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | 54.9% | 72.8% | 23.0% | 48.3% | |
| |
|---|
| Median (118 companies) | 9.6% | 6.5% | 3.3% | -1.0% | -8.8% |
|---|
| JC Group Holdings Ltd ($8326) | | -5.5% | -3.0% | 6.7% | 58.1% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Vongroup Ltd ($318) | | | 95.1% | 99.1% | |
| Modern Beauty Salon Holdings Ltd ($919) | 97.4% | 95.9% | 96.8% | 96.7% | |
| Moiselle International Holdings Ltd ($130) | 81.2% | 83.8% | 80.6% | 83.2% | |
| Embry Holdings Ltd ($1388) | 81.2% | 80.4% | 82.3% | 81.6% | |
| Nanjing Sinolife United Co Ltd ($3332) | 86.5% | 89.3% | 90.9% | 80.6% | |
| |
|---|
| Median (105 companies) | 36.2% | 36.3% | 35.0% | 33.3% | 41.1% |
|---|
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| China Energy Development Holdings Ltd ($228) | -58.1% | -72.3% | -84.0% | 1,070.6% | |
| Golden Eagle Retail Group Ltd ($3308) | 48.5% | 47.3% | 42.8% | 55.4% | |
| Nanjing Sinolife United Co Ltd ($3332) | 51.6% | 56.9% | 54.4% | 44.8% | |
| Lifestyle International Holdings Ltd ($1212) | 47.5% | 47.0% | 44.7% | 43.4% | |
| China Dongxiang Group Co Ltd ($3818) | 6.0% | 5.6% | 58.3% | 41.4% | |
| |
|---|
| Median (118 companies) | 9.9% | 7.3% | 8.8% | 6.8% | 1.8% |
|---|
| JC Group Holdings Ltd ($8326) | 32.1% | 31.3% | 28.5% | 29.4% | 22.6% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Culture Landmark Investment Ltd ($674) | 11.6% | 19.4% | 15.7% | 47.2% | |
| Springland International Holdings Ltd ($1700) | 31.9% | 17.4% | 26.5% | 36.9% | |
| Merry Garden Holdings Ltd ($1237) | 18.6% | 28.6% | 15.1% | 34.2% | |
| China Energy Development Holdings Ltd ($228) | 1.6% | 0.2% | 0.0% | 27.4% | |
| Golden Eagle Retail Group Ltd ($3308) | 28.5% | 9.4% | 26.7% | 25.4% | |
| |
|---|
| Median (118 companies) | 4.1% | 3.6% | 3.7% | 3.1% | 1.7% |
|---|
| JC Group Holdings Ltd ($8326) | 1.8% | 1.6% | 6.9% | 3.8% | 2.6% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 50.7% | -4.6% | 81.3% | 71.8% | |
| Starbucks Corp ($4337) | 36.4% | -6.0% | 52.8% | 51.4% | |
| Sa Sa International Holdings Ltd ($178) | 53.5% | 52.7% | 49.0% | 39.8% | 19.0% |
| Noble House China Holdings Ltd ($8246) | 17.7% | -67.7% | -113.8% | 35.6% | |
| Fairwood Holdings Ltd ($52) | 28.0% | 29.1% | 28.6% | 32.1% | |
| |
|---|
| Median (118 companies) | 12.3% | 8.8% | 8.5% | 5.8% | 0.8% |
|---|
| JC Group Holdings Ltd ($8326) | | 215.6% | 92.8% | 66.3% | 81.7% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Sparkle Roll Group Ltd ($970) | 0.6x | 4.0x | 9.3x | 23.5x | 8.5x |
| Trinity Ltd ($891) | -0.2x | 0.2x | 0.6x | 18.2x | |
| Parkson Retail Group Ltd ($3368) | 0.8x | 2.3x | 3.6x | 9.8x | |
| Maoye International Holdings Ltd ($848) | 2.9x | 3.3x | 3.4x | 9.0x | |
| Century Ginwa Retail Holdings Ltd ($162) | 2.0x | 2.5x | 4.8x | 7.3x | |
| |
|---|
| Median (92 companies) | -0.5x | -0.7x | -0.2x | -0.5x | -0.8x |
|---|
| JC Group Holdings Ltd ($8326) | -0.1x | -0.2x | -0.7x | -0.7x | -0.2x |
