China Maple Leaf Educational Systems Ltd reports 49.6% Net Income growth in 2016 and 6.2 pp EBITDA Margin growth from 35.6% to 41.8%
29/11/2016 • About China Maple Leaf Educational Systems Ltd (
$1317) • By InTwits
China Maple Leaf Educational Systems Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Maple Leaf Educational Systems Ltd is a fast growth stock: FY2016 revenue growth was 27.1%, 5 year revenue CAGR was 19.1% at FY2016 ROIC 15.0%
- China Maple Leaf Educational Systems Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.7%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 150 in FY2016, 214 in FY2015, 114 in FY2014, 240 in FY2013, 106 in FY2012
- The company has highly profitable business model: ROIC is at 15.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Maple Leaf Educational Systems Ltd ($1317) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 413.5 | 471.2 | 540.3 | 653.0 | 829.8 | 27.1% |
| Gross Profit | 191.1 | 202.5 | 235.1 | 298.7 | 401.7 | 34.5% |
| SG&A | 62.3 | 77.0 | 96.2 | 124.2 | 147.8 | 19.0% |
| EBITDA | 160.0 | 163.4 | 187.1 | 232.5 | 347.1 | 49.3% |
| Net Income | 94.0 | 33.2 | 40.0 | 205.5 | 307.6 | 49.6% |
Balance Sheet
|
|---|
| Cash | 297.0 | 409.3 | 380.3 | 1,022.1 | 1,237.9 | 21.1% |
| Short Term Debt | 170.0 | 215.0 | 223.5 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 60.0 | 476.5 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 106.1 | 239.7 | 113.7 | 214.4 | 149.6 | -30.2% |
Ratios
|
|---|
| Revenue growth | 19.5% | 14.0% | 14.7% | 20.9% | 27.1% | |
| EBITDA growth | 9.2% | 2.1% | 14.5% | 24.3% | 49.3% | |
| Gross Margin | 46.2% | 43.0% | 43.5% | 45.7% | 48.4% | 2.7% |
| EBITDA Margin | 38.7% | 34.7% | 34.6% | 35.6% | 41.8% | 6.2% |
| Net Income Margin | 22.7% | 7.0% | 7.4% | 31.5% | 37.1% | 5.6% |
| SG&A, % of revenue | 15.1% | 16.3% | 17.8% | 19.0% | 17.8% | -1.2% |
| CAPEX, % of revenue | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% | -14.8% |
| ROIC | 22.7% | 19.2% | 14.8% | 11.9% | 15.0% | 3.2% |
| ROE | 27.9% | 8.3% | 9.0% | 18.0% | 16.0% | -2.0% |
| Net Debt/EBITDA | -0.8x | -0.8x | 1.7x | -4.4x | -3.6x | 0.8x |
Revenue and profitability
China Maple Leaf Educational Systems Ltd's Revenue jumped on 27.1%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 27.2 pp from 18.0% to -9.2% in FY2016.
Gross Margin increased on 2.7 pp from 45.7% to 48.4% in FY2016. SG&A as a % of Revenue decreased slightly on 1.2 pp from 19.0% to 17.8% in FY2016.
Net Income marign increased on 5.6 pp from 31.5% to 37.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 18.0%. The company showed big decline in CAPEX/Revenue of 32.9 pp from 50.9% in FY2013 to 18.0% in FY2016. Average CAPEX/Revenue for the last three years was 24.0%.
Return on investment
The company operates at good ROIC (15.05%) and ROE (16.04%). ROIC increased on 3.2 pp from 11.9% to 15.0% in FY2016. ROE decreased slightly on 2.0 pp from 18.0% to 16.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 21.1%.
Appendix 1: Peers in Commercial Services
Below you can find China Maple Leaf Educational Systems Ltd benchmarking vs. other companies in Commercial Services 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| |
|---|
| Median (67 companies) | 6.5% | 8.6% | 9.8% | 4.0% | 8.7% |
|---|
| China Maple Leaf Educational Systems Ltd ($1317) | | 14.0% | 14.7% | 20.9% | 27.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.5% | 30.5% | 31.0% | 30.9% | 29.3% |
|---|
| China Maple Leaf Educational Systems Ltd ($1317) | 46.2% | 43.0% | 43.5% | 45.7% | 48.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (67 companies) | 17.5% | 14.9% | 11.2% | 9.8% | -5.7% |
|---|
| China Maple Leaf Educational Systems Ltd ($1317) | 38.7% | 34.7% | 34.6% | 35.6% | 41.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| Qingdao Port International Co Ltd ($6198) | 31.9% | 28.7% | 8.5% | 28.2% | |
| |
|---|
| Median (67 companies) | 2.7% | 3.4% | 2.4% | 2.8% | 1.7% |
|---|
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 6.3% | 6.4% | 5.8% | 3.3% | -3.6% |
|---|
| China Maple Leaf Educational Systems Ltd ($1317) | 22.7% | 19.2% | 14.8% | 11.9% | 15.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | |
| |
|---|
| Median (44 companies) | 0.0x | -0.7x | -0.9x | -0.6x | -2.4x |
|---|
| China Maple Leaf Educational Systems Ltd ($1317) | -0.8x | -0.8x | 1.7x | -4.4x | -3.6x |
