Fuyao Glass Industry Group Co Ltd is an attractive stock for a growth investor
03/03/2017 • About Fuyao Glass Industry Group Co Ltd (
$3606) • By InTwits
Have you thought about Fuyao Glass Industry Group Co 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
Fuyao Glass Industry Group Co Ltd showed fast growth in the last financial year. Fuyao Glass Industry Group Co Ltd's revenue surged on 22.5% in FY2016. Together with revenue growth Fuyao Glass Industry Group Co Ltd also managed to keep EBITDA growth. EBITDA grew 26.4% for the same period.
If we look for the longer period Fuyao Glass Industry Group Co Ltd showed fast revenue growth of 13.3% from 2013 to 2016 annualy. EBITDA surged on 13.3% from 2013 to 2016 annualy.
Fuyao Glass Industry Group Co Ltd ($3606) financials for the last 5 years
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 |
|---|
| Revenue | 10,247 | 11,415 | 12,928 | 13,573 | 16,621 |
|---|
| Revenue growth, % | | 11.4% | 13.3% | 5.0% | 22.5% |
|---|
| Gross margin, % | 37.4% | 41.0% | 41.5% | 41.5% | 42.0% |
|---|
| SG&A, % | 14.2% | 14.8% | 14.8% | 17.0% | 17.2% |
|---|
| EBITDA | 2,916 | 3,272 | 3,774 | 3,762 | 4,756 |
|---|
| EBITDA growth, % | | 12.2% | 15.3% | -0.3% | 26.4% |
|---|
| EBITDA margin, % | 28.5% | 28.7% | 29.2% | 27.7% | 28.6% |
|---|
| Net Income | 1,524 | 1,918 | 2,219 | 2,605 | 3,143 |
|---|
| Net Income margin, % | 14.9% | 16.8% | 17.2% | 19.2% | 18.9% |
|---|
| |
| CAPEX | 1,500 | 1,887 | 2,734 | 3,245 | 3,548 |
|---|
| CAPEX/Revenue, % | 14.6% | 16.5% | 21.1% | 23.9% | 21.3% |
|---|
| Debt | 4,006 | 4,301 | 4,548 | 4,719 | 7,245 |
|---|
| Cash | 487 | 491 | 499 | 5,905 | 7,199 |
|---|
| Net Debt/EBITDA | 1.2x | 1.2x | 1.1x | -0.3x | 0.0x |
|---|
| |
| ROIC, % | 19.0% | 21.1% | 22.3% | 15.7% | 15.0% |
|---|
| ROE, % | 23.1% | 25.9% | 26.6% | 20.6% | 18.2% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin increased slightly on 0.900 pp from 27.7% to 28.6% in 2016. If we look for the longer period the company's EBITDA margin showed almost no change on 0.100 pp from 28.7% in 2013 to 28.6% in 2016.
We call Fuyao Glass Industry Group Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 15.0%. Three years ago it was higher at 21.1%. Average ROIC for the last three years was 17.7%.
Fuyao Glass Industry Group Co Ltd's Net Income margin decreased slightly on 0.300 pp from 19.2% to 18.9% in 2016. In the last 3 years Net Income margin surged on 2.10 pp from 16.8% in 2013 to 18.9% in 2016.
Fuyao Glass Industry Group Co Ltd operates at ROE of 18.2%. It's average ROE for the last three years was 21.8%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.Fuyao Glass Industry Group Co Ltd's CAPEX/Revenue was 21.3% in FY2016. CAPEX/Revenue surged on 4.82 pp from 16.5% in 2013 to 21.3% in 2016. For the last three years the average CAPEX/Revenue was 22.1%.
Leverage (Debt)
The company has low debt level at 0.0x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company showed big decline in leverage of 1.15x from 1.16x in 2013 to 0.01x in 2016.
Peers in Auto Parts&Equipment
Below we provide Fuyao Glass Industry Group Co Ltd benchmarking against other companies in Auto Parts&Equipment 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 Vehicle Components Technology Holdings Ltd ($1269) | -10.4% | 27.1% | 31.0% | 30.9% | |
| Xinchen China Power Holdings Ltd ($1148) | 11.5% | 0.5% | 2.6% | 23.3% | |
| Minth Group Ltd ($425) | 11.3% | 27.3% | 21.3% | 14.5% | |
| Nexteer Automotive Group Ltd ($1316) | -3.6% | 10.1% | 24.8% | 12.8% | |
| Xinyi Glass Holdings Ltd ($868) | 2.5% | 17.8% | 9.3% | 5.5% | |
| |
|---|
| Median (16 companies) | -8.3% | 14.0% | 2.6% | -2.9% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | | 11.4% | 13.3% | 5.0% | 22.5% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Minth Group Ltd ($425) | 33.1% | 33.0% | 31.2% | 31.7% | |
| Xinyi Glass Holdings Ltd ($868) | 26.4% | 31.6% | 25.2% | 27.3% | |
| Zhejiang Shibao Co Ltd ($1057) | 30.3% | 26.0% | 26.4% | 25.5% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 20.9% | 23.6% | 24.0% | 24.2% | |
| Weichai Power Co Ltd ($2338) | 19.2% | 20.2% | 21.1% | 22.8% | |
| |
|---|
| Median (17 companies) | 20.1% | 20.0% | 21.2% | 19.1% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 37.4% | 41.0% | 41.5% | 41.5% | 42.0% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Xinyi Glass Holdings Ltd ($868) | 22.5% | 43.8% | 20.0% | 25.0% | |
| Minth Group Ltd ($425) | 25.6% | 24.2% | 23.1% | 24.5% | |
| Xiezhong International Holdings Ltd ($3663) | 20.7% | 17.2% | 16.0% | 18.6% | |
| Nexteer Automotive Group Ltd ($1316) | 6.7% | 10.4% | 12.0% | 13.7% | |
| Zhejiang Shibao Co Ltd ($1057) | 19.8% | 14.0% | 14.5% | 13.5% | |
| |
|---|
| Median (17 companies) | 9.3% | 11.4% | 11.5% | 11.3% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 28.5% | 28.7% | 29.2% | 27.7% | 28.6% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Hybrid Kinetic Group Ltd ($1188) | 8.5% | | | 176.2% | |
| Changfeng Axle China Co Ltd ($1039) | 14.4% | 4.1% | 1.1% | 38.3% | |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 24.9% | 12.0% | 19.4% | |
| Xinyi Glass Holdings Ltd ($868) | 17.0% | 28.9% | 15.8% | 16.7% | |
| Minth Group Ltd ($425) | 14.8% | 16.1% | 18.7% | 15.4% | |
| |
|---|
| Median (17 companies) | 8.5% | 6.2% | 5.4% | 7.4% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 14.6% | 16.5% | 21.1% | 23.9% | 21.3% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Nexteer Automotive Group Ltd ($1316) | 14.0% | 18.2% | 17.7% | 21.2% | |
| Minth Group Ltd ($425) | 11.9% | 12.1% | 11.8% | 13.4% | |
| Xinyi Glass Holdings Ltd ($868) | 9.3% | 22.6% | 8.3% | 10.8% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.4% | 9.2% | 12.5% | 10.3% | |
| Xinchen China Power Holdings Ltd ($1148) | 22.4% | 14.7% | 12.5% | 8.6% | |
| |
|---|
| Median (17 companies) | 6.3% | 8.5% | 5.8% | 2.8% | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.0% | 21.1% | 22.3% | 15.7% | 15.0% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 7.9x | 2.8x | 2.2x | 2.9x | |
| Xiezhong International Holdings Ltd ($3663) | 0.6x | 1.2x | 1.2x | 2.2x | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 9.4x | 5.8x | 5.3x | 2.0x | |
| Xinchen China Power Holdings Ltd ($1148) | -0.1x | -2.3x | 0.6x | 1.9x | |
| Xinyi Glass Holdings Ltd ($868) | 1.9x | 0.9x | 2.4x | 1.7x | |
| |
|---|
| Median (11 companies) | 0.6x | 0.9x | 1.0x | 0.6x | |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 1.2x | 1.2x | 1.1x | -0.3x | 0.0x |
