China Lesso Group Holdings Ltd Net Income surged on 18.6% in 2016 and Revenue jumped on 12.8%
06/03/2017 • About China Lesso Group Holdings Ltd (
$2128) • By InTwits
China Lesso Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Lesso Group Holdings Ltd is a growth stock: FY2016 revenue growth was 12.8%, 5 year revenue CAGR was 11.2% at FY2016 ROIC 16.5%
- EBITDA Margin is relatively stable: 17.9% in FY2016 vs. 17.6% in FY2015 vs. 16.8% in FY2012
- The company has highly profitable business model: ROIC is at 16.5%
- It operates with high leverage: Net Debt/EBITDA is 0.3x while industry average is -8.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Lesso Group Holdings Ltd ($2128) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,891 | 13,071 | 14,823 | 15,264 | 17,221 | 12.8% |
| Gross Profit | 2,649 | 3,266 | 3,801 | 3,938 | 4,582 | 16.4% |
| SG&A | 925 | 1,227 | 1,351 | 1,276 | 1,580 | 23.8% |
| EBITDA | 1,828 | 2,164 | 2,450 | 2,682 | 3,075 | 14.6% |
| Net Income | 1,238 | 1,449 | 1,554 | 1,621 | 1,922 | 18.6% |
Balance Sheet
|
|---|
| Cash | 1,922 | 2,189 | 3,199 | 3,894 | 3,886 | -0.2% |
| Short Term Debt | 596 | 1,080 | 1,159 | 1,066 | 4,252 | 299.1% |
| Long Term Debt | 1,629 | 1,607 | 2,021 | 2,175 | 442 | -79.7% |
Cash flow
|
|---|
| Capex | 1,477 | 1,185 | 1,744 | 1,234 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 7.4% | 20.0% | 13.4% | 3.0% | 12.8% | |
| EBITDA growth | 3.8% | 18.3% | 13.2% | 9.5% | 14.6% | |
| Gross Margin | 24.3% | 25.0% | 25.6% | 25.8% | 26.6% | 0.8% |
| EBITDA Margin | 16.8% | 16.6% | 16.5% | 17.6% | 17.9% | 0.3% |
| Net Income Margin | 11.4% | 11.1% | 10.5% | 10.6% | 11.2% | 0.5% |
| SG&A, % of revenue | 8.5% | 9.4% | 9.1% | 8.4% | 9.2% | 0.8% |
| CAPEX, % of revenue | 13.6% | 9.1% | 11.8% | 8.1% | | -8.1% |
| ROIC | 20.5% | 19.4% | 18.2% | 17.2% | 16.5% | -0.7% |
| ROE | 22.5% | 21.9% | 19.7% | 17.7% | 18.3% | 0.6% |
| Net Debt/EBITDA | 0.2x | 0.2x | -0.0x | -0.2x | 0.3x | 0.5x |
Revenue and profitability
China Lesso Group Holdings Ltd's Revenue surged on 12.8%. EBITDA Margin showed almost no change in FY2016.
Gross Margin increased slightly on 0.81 pp from 25.8% to 26.6% in FY2016. SG&A as a % of Revenue increased slightly on 0.81 pp from 8.4% to 9.2% in FY2016.
Net Income marign increased slightly on 0.54 pp from 10.6% to 11.2% in FY2016.
Return on investment
The company operates at good ROIC (16.51%) and ROE (18.30%). ROIC decreased slightly on 0.71 pp from 17.2% to 16.5% in FY2016. ROE increased slightly on 0.60 pp from 17.7% to 18.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 1.5x. Net Debt / EBITDA surged on 0.5x from -0.2x to 0.3x in FY2016. Debt surged on 44.9% while cash showed almost no change in FY2016.
Appendix 1: Peers in Building Materials
Below we provide China Lesso Group Holdings Ltd benchmarking against other companies in Building Materials 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Plywood Hldg Ltd ($767) | -34.9% | -14.5% | 119.5% | 57.3% | |
| Far East Global Group Ltd ($830) | 52.9% | 9.5% | 18.6% | 30.5% | |
| WLS Holdings Ltd/Hong Kong ($8021) | | 9.4% | -11.1% | 22.0% | 13.8% |
| China Wood Optimization Holding Ltd ($8099) | 68.7% | 77.9% | 6.5% | 18.9% | |
| Steed Oriental Holdings Co Ltd ($8277) | | -4.2% | 11.0% | 9.4% | -21.5% |
| |
|---|
| Median (25 companies) | -2.8% | 9.5% | 6.5% | -14.4% | -3.9% |
|---|
| China Lesso Group Holdings Ltd ($2128) | | 20.0% | 13.4% | 3.0% | 12.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 91.4% | 82.0% | 97.2% | 98.6% | |
| Sustainable Forest Holdings Ltd ($723) | -2.4% | 12.1% | 19.7% | 55.2% | 83.9% |
| Dongpeng Holdings Co Ltd ($3386) | 35.6% | 37.1% | 38.5% | 39.1% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 37.2% | 36.9% | 37.0% | 36.4% | |
| Anhui Conch Cement Co Ltd ($914) | 27.3% | 32.5% | 33.2% | 26.9% | |
| |
|---|
| Median (25 companies) | 19.5% | 21.9% | 20.7% | 15.0% | 13.9% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 24.3% | 25.0% | 25.6% | 25.8% | 26.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Plywood Hldg Ltd ($767) | 12.6% | -19.8% | 50.5% | 34.7% | |
| China Tianrui Group Cement Co Ltd ($1252) | 28.5% | 23.7% | 26.7% | 32.8% | |
| Anhui Conch Cement Co Ltd ($914) | 27.1% | 31.1% | 32.1% | 29.7% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 30.4% | 29.9% | 23.8% | 26.2% | |
| Dongpeng Holdings Co Ltd ($3386) | 14.3% | 21.5% | 22.6% | 24.4% | |
| |
|---|
| Median (25 companies) | 14.3% | 14.5% | 18.2% | 13.6% | -2.9% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 16.8% | 16.6% | 16.5% | 17.6% | 17.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Wood Optimization Holding Ltd ($8099) | 10.9% | 9.6% | 1.8% | 19.3% | |
| China Shanshui Cement Group Ltd ($691) | 18.9% | 21.1% | 12.1% | 14.3% | |
| Luks Group Vietnam Holdings Co Ltd ($366) | 0.6% | 0.5% | 4.1% | 14.2% | |
| China Glass Holdings Ltd ($3300) | 19.6% | 12.5% | 12.4% | 13.5% | |
| WLS Holdings Ltd/Hong Kong ($8021) | 6.0% | 6.6% | 7.9% | 11.5% | 1.5% |
| |
|---|
| Median (25 companies) | 9.5% | 8.0% | 5.5% | 6.4% | 1.3% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 13.6% | 9.1% | 11.8% | 8.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dongpeng Holdings Co Ltd ($3386) | 37.1% | 35.8% | 27.2% | 26.6% | |
| China Wood Optimization Holding Ltd ($8099) | 33.5% | 27.3% | 17.7% | 17.7% | |
| Anhui Conch Cement Co Ltd ($914) | 12.7% | 17.5% | 18.4% | 11.7% | |
| Hong Wei Asia Holdings Co Ltd ($8191) | 17.0% | 5.2% | 9.3% | 8.6% | |
| China Singyes Solar Technologies Holdings Ltd ($750) | 18.6% | 19.9% | 16.0% | 8.1% | |
| |
|---|
| Median (25 companies) | 5.0% | 6.0% | 4.8% | 1.2% | -2.4% |
|---|
| China Lesso Group Holdings Ltd ($2128) | 20.5% | 19.4% | 18.2% | 17.2% | 16.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Tianrui Group Cement Co Ltd ($1252) | 4.2x | 5.1x | 5.2x | 7.9x | |
| BBMG Corp ($2009) | 4.6x | 5.0x | 6.1x | 6.6x | |
| Asia Cement China Holdings Corp ($743) | 3.2x | 2.7x | 2.8x | 5.1x | |
| West China Cement Ltd ($2233) | 3.3x | 2.9x | 3.6x | 4.2x | |
| China Singyes Solar Technologies Holdings Ltd ($750) | 0.9x | 0.8x | 1.8x | 4.0x | |
| |
|---|
| Median (15 companies) | 2.4x | 1.9x | 2.0x | 3.6x | -170.8x |
|---|
| China Lesso Group Holdings Ltd ($2128) | 0.2x | 0.2x | -0.0x | -0.2x | 0.3x |
