Over the last few years China Maple Leaf Educational Systems Ltd showed solid growth in fundamentals
06/12/2016 • About China Maple Leaf Educational Systems Ltd (
$1317) • By InTwits
China Maple Leaf Educational Systems Ltd is a growth stock in Commercial Services industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
China Maple Leaf Educational Systems Ltd showed fast growth in the last financial year. China Maple Leaf Educational Systems Ltd's revenue surged on 27.1% in FY2016. Together with revenue growth China Maple Leaf Educational Systems Ltd also managed to keep EBITDA growth. EBITDA grew 49.3% for the same period.
In the longer period the company showed fast revenue growth of 20.8% from FY2013 to FY2016 annualy. EBITDA surged on 28.5% from FY2013 to FY2016 annualy.
China Maple Leaf Educational Systems Ltd ($1317) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 413 | 471 | 540 | 653 | 830 |
|---|
| Revenue growth, % | | 14.0% | 14.7% | 20.9% | 27.1% |
|---|
| Gross margin, % | 46.2% | 43.0% | 43.5% | 45.7% | 48.4% |
|---|
| SG&A, % | 15.1% | 16.3% | 17.8% | 19.0% | 17.8% |
|---|
| EBITDA | 160 | 163 | 187 | 232 | 347 |
|---|
| EBITDA growth, % | | 2.1% | 14.5% | 24.3% | 49.3% |
|---|
| EBITDA margin, % | 38.7% | 34.7% | 34.6% | 35.6% | 41.8% |
|---|
| Net Income | 94 | 33 | 40 | 206 | 308 |
|---|
| Net Income margin, % | 22.7% | 7.04% | 7.41% | 31.5% | 37.1% |
|---|
| |
| CAPEX | 106 | 240 | 114 | 214 | 150 |
|---|
| CAPEX/Revenue, % | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
|---|
| Debt | 170 | 275 | 700 | 0 | 0 |
|---|
| Cash | 297 | 409 | 380 | 1,022 | 1,238 |
|---|
| Net Debt/EBITDA | -0.8x | -0.8x | 1.7x | -4.4x | -3.6x |
|---|
| |
| ROIC, % | 22.7% | 19.2% | 14.8% | 11.9% | 15.0% |
|---|
| ROE, % | 27.9% | 8.3% | 9.0% | 18.0% | 16.0% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. EBITDA margin surged on 6.20 pp from 35.6% to 41.8% in FY2016. If we look for the longer period China Maple Leaf Educational Systems Ltd showed fast EBITDA margin growth of 7.10 pp from 34.7% in FY2013 to 41.8% in FY2016.
China Maple Leaf Educational Systems Ltd shows attractive ROIC at 15.0% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 19.2%. For the last three years the average ROIC was 13.9%.
China Maple Leaf Educational Systems Ltd's Net Income margin surged on 5.60 pp from 31.5% to 37.1% in FY2016. In the last 3 years China Maple Leaf Educational Systems Ltd's Net Income margin surged on 30.1 pp from 7% in FY2013 to 37.1% in FY2016.
China Maple Leaf Educational Systems Ltd operates at ROE of 16.0%. Average ROE for the last three years was 14.4%.
Capital expenditures (CAPEX)
To this fast growth China Maple Leaf Educational Systems Ltd had to invest in CAPEX.China Maple Leaf Educational Systems Ltd's CAPEX/Revenue was 18.0% in FY2016. The company showed big decline in CAPEX/Revenue of 32.9 pp from 50.9% in FY2013 to 18.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 24.0%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -3.6x Net Debt/EBITDA. In the longer period China Maple Leaf Educational Systems Ltd showed fast leverage growth of 2.75x from -0.82x in FY2013 to -3.57x in FY2016.
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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 |
