Yestar International Holdings Co Ltd EBITDA jumped on 50.9% and EBITDA Margin increased on 3.2 pp from 14.4% to 17.6%
15/03/2017 • About Yestar International Holdings Co Ltd (
$2393) • By InTwits
Yestar International Holdings Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yestar International Holdings Co Ltd is a fast growth stock: FY2016 revenue growth was 23.1%, 5 year revenue CAGR was 25.3% at FY2016 ROIC 18.8%
- EBITDA Margin is expanding: 17.6% in FY2016 vs. 14.4% in FY2015 vs. 9.6% in FY2012
- The company has highly profitable business model: ROIC is at 18.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yestar International Holdings Co Ltd ($2393) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 956 | 1,173 | 1,531 | 2,455 | 3,022 | 23.1% |
| Gross Profit | 167 | 209 | 263 | 517 | 766 | 48.1% |
| SG&A | 91 | 115 | 116 | 225 | 343 | 52.5% |
| EBITDA | 91 | 112 | 166 | 353 | 532 | 50.9% |
| Net Income | 57 | 65 | 101 | 163 | 201 | 23.5% |
Balance Sheet
|
|---|
| Cash | 160 | 283 | 195 | 506 | 1,273 | 151.5% |
| Short Term Debt | 86 | 197 | 166 | 248 | 150 | -39.6% |
| Long Term Debt | 20 | 0 | 5 | 173 | 1,459 | 745.5% |
Cash flow
|
|---|
| Capex | 52 | 23 | 10 | 19 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -2.2% | 22.8% | 30.5% | 60.3% | 23.1% | |
| EBITDA growth | 10.3% | 22.1% | 49.0% | 112.2% | 50.9% | |
| Gross Margin | 17.5% | 17.8% | 17.2% | 21.1% | 25.4% | 4.3% |
| EBITDA Margin | 9.6% | 9.5% | 10.9% | 14.4% | 17.6% | 3.2% |
| Net Income Margin | 5.9% | 5.5% | 6.6% | 6.6% | 6.7% | 0.0% |
| SG&A, % of revenue | 9.5% | 9.8% | 7.6% | 9.2% | 11.4% | 2.2% |
| CAPEX, % of revenue | 5.4% | 2.0% | 0.7% | 0.8% | | -0.8% |
| ROIC | 28.8% | 24.1% | 26.2% | 25.4% | 18.8% | -6.6% |
| ROE | 37.9% | 27.5% | 31.1% | 26.6% | 21.7% | -4.9% |
| Net Debt/EBITDA | -0.6x | -0.8x | -0.1x | -0.2x | 0.6x | 0.9x |
Revenue and profitability
The company's Revenue jumped on 23.1%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.8 pp from 1.8% to -5.0% in FY2016.
Gross Margin increased on 4.3 pp from 21.1% to 25.4% in FY2016. SG&A as a % of Revenue increased on 2.2 pp from 9.2% to 11.4% in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at high and attractive ROE (21.74%) while ROIC is a bit lower (18.80%). ROIC decreased on 6.6 pp from 25.4% to 18.8% in FY2016. ROE decreased on 4.9 pp from 26.6% to 21.7% in FY2016.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.9x from -0.2x to 0.6x in FY2016. Debt jumped on 283% while cash jumped on 152%.
Appendix 1: Peers in Distribution/Wholesale
Below you can find Yestar International Holdings Co Ltd benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Goldin Financial Holdings Ltd ($530) | | 63.5% | 60.3% | 42.9% | 8.8% |
| |
|---|
| Median (36 companies) | 2.5% | 0.7% | -0.5% | -2.1% | -14.9% |
|---|
| Yestar International Holdings Co Ltd ($2393) | | 22.8% | 30.5% | 60.3% | 23.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | 55.8% |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | 58.7% |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| |
|---|
| Median (34 companies) | 17.0% | 16.3% | 18.7% | 19.9% | 23.4% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 17.5% | 17.8% | 17.2% | 21.1% | 25.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | 272.7% |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (37 companies) | 1.7% | 1.7% | 4.4% | 3.8% | -7.7% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 9.6% | 9.5% | 10.9% | 14.4% | 17.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | 4.0% |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (36 companies) | 1.2% | 1.7% | 1.7% | 1.2% | 1.8% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 5.4% | 2.0% | 0.7% | 0.8% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | 8.7% |
| Li & Fung Ltd ($494) | 13.0% | 11.8% | 12.3% | 13.1% | |
| |
|---|
| Median (38 companies) | 2.1% | 0.2% | 3.0% | 2.6% | -7.8% |
|---|
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | 18.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (26 companies) | -0.1x | -0.5x | 0.7x | -0.1x | -0.7x |
|---|
| Yestar International Holdings Co Ltd ($2393) | -0.6x | -0.8x | -0.1x | -0.2x | 0.6x |
