Eye on ANTA Sports Products Ltd as a growth stock: its revenue grew 22.4% and EBITDA 26.5% annually over the last three years
01/03/2017 • About ANTA Sports Products Ltd (
$2020) • By InTwits
Have you thought about ANTA Sports Products 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
ANTA Sports Products Ltd showed fast growth in the last financial year. The company's revenue surged on 20.0% in FY2016. The growth also happened in EBITDA of 18.9% for the same period.
In the longer period the company showed fast revenue growth of 22.4% from 2013 to 2016 annualy. EBITDA surged on 26.5% from 2013 to 2016 annualy.
ANTA Sports Products Ltd ($2020) financials for the last 5 years
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 |
|---|
| Revenue | 7,623 | 7,281 | 8,923 | 11,126 | 13,346 |
|---|
| Revenue growth, % | | -4.5% | 22.5% | 24.7% | 20.0% |
|---|
| Gross margin, % | 38.0% | 41.7% | 45.1% | 46.6% | 48.4% |
|---|
| SG&A, % | 19.1% | 21.6% | 23.5% | 24.4% | 26.3% |
|---|
| EBITDA | 1,673 | 1,696 | 2,178 | 2,885 | 3,429 |
|---|
| EBITDA growth, % | | 1.4% | 28.4% | 32.4% | 18.9% |
|---|
| EBITDA margin, % | 21.9% | 23.3% | 24.4% | 25.9% | 25.7% |
|---|
| Net Income | 1,359 | 1,315 | 1,700 | 2,041 | 2,386 |
|---|
| Net Income margin, % | 17.8% | 18.1% | 19.1% | 18.3% | 17.9% |
|---|
| |
| CAPEX | 214 | 175 | 254 | 458 | 573 |
|---|
| CAPEX/Revenue, % | 2.81% | 2.40% | 2.84% | 4.12% | 4.29% |
|---|
| Debt | 1,035 | 527 | 1,385 | 1,369 | 978 |
|---|
| Cash | 4,008 | 4,344 | 4,934 | 5,166 | 5,830 |
|---|
| Net Debt/EBITDA | -1.8x | -2.3x | -1.6x | -1.3x | -1.4x |
|---|
| |
| ROIC, % | 21.1% | 19.2% | 22.8% | 27.0% | 30.0% |
|---|
| ROE, % | 20.7% | 18.9% | 22.7% | 24.9% | 26.3% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 25.9% in FY2015 to 25.7% in FY2016. In the longer period ANTA Sports Products Ltd's EBITDA margin surged on 2.40 pp from 23.3% in 2013 to 25.7% in 2016.
We call ANTA Sports Products Ltd an attractive growth stock as together with the growth it delivers high ROIC at 30.0%. Three years ago it was considerably lower at 19.2%. For the last three years the average ROIC was 26.6%.
The company's Net Income margin decreased slightly on 0.400 pp from 18.3% to 17.9% in 2016. In the last 3 years the company showed small Net Income margin decline of 0.200 pp from 18.1% in 2013 to 17.9% in 2016.
ANTA Sports Products Ltd operates at ROE of 26.3%. For the last three years the average ROE was 24.7%.
Capital expenditures (CAPEX)
In FY2016 ANTA Sports Products Ltd had CAPEX/Revenue of 4.29%. CAPEX/Revenue surged on 1.89 pp from 2.40% in 2013 to 4.29% in 2016. For the last three years the average CAPEX/Revenue was 3.75%.
Leverage (Debt)
Having such a fast growth profile ANTA Sports Products Ltd keeps negative net debt at -1.4x Net Debt/EBITDA. In the last 3 years the company showed fast leverage growth of 0.84x from -2.25x in 2013 to -1.41x in 2016.
Peers in Retail
Below we provide ANTA Sports Products Ltd benchmarking against other companies in Retail industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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) | | 23.7% | -80.2% | 90.3% | -7.2% |
| 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) | 7.6% | 6.5% | 3.1% | -1.0% | -8.0% |
|---|
| ANTA Sports Products Ltd ($2020) | | -4.5% | 22.5% | 24.7% | 20.0% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Vongroup Ltd ($318) | | | 95.1% | 99.1% | 99.0% |
| Modern Beauty Salon Holdings Ltd ($919) | 97.4% | 95.9% | 96.8% | 96.7% | 96.8% |
| Moiselle International Holdings Ltd ($130) | 81.2% | 83.8% | 80.6% | 83.2% | 77.6% |
| 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 (104 companies) | 35.7% | 35.8% | 34.7% | 32.5% | 43.5% |
|---|
| ANTA Sports Products Ltd ($2020) | 38.0% | 41.7% | 45.1% | 46.6% | 48.4% |
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% | 5.6% |
|---|
| ANTA Sports Products Ltd ($2020) | 21.9% | 23.3% | 24.4% | 25.9% | 25.7% |
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% | 3.9% |
| 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% | 3.8% | 3.1% | 1.9% |
|---|
| ANTA Sports Products Ltd ($2020) | 2.8% | 2.4% | 2.8% | 4.1% | 4.3% |
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% | 13.3% |
| JC Group Holdings Ltd ($8326) | | 215.6% | 92.8% | 66.3% | 81.7% |
| Starbucks Corp ($4337) | 36.4% | -6.0% | 52.8% | 51.4% | 46.2% |
| 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% | |
| |
|---|
| Median (118 companies) | 12.3% | 8.8% | 8.5% | 5.8% | 1.9% |
|---|
| ANTA Sports Products Ltd ($2020) | 21.1% | 19.2% | 22.8% | 27.0% | 30.0% |
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 | 11.1x |
| 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 | -0.6x | -0.2x | -0.5x | -0.6x |
|---|
| ANTA Sports Products Ltd ($2020) | -1.8x | -2.3x | -1.6x | -1.3x | -1.4x |
