Fu Shou Yuan International Group Ltd EBITDA Margin dropped on 43.1 pp from 43.1% to in 2016
17/03/2017 • About Fu Shou Yuan International Group Ltd (
$1448) • By InTwits
Fu Shou Yuan International Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fu Shou Yuan International Group Ltd is a fast growth stock: FY2016 revenue growth was 14.4%, 5 year revenue CAGR was 24.6% at FY2016 ROIC 16.3%
- The company has highly profitable business model: ROIC is at 16.3%
- It operates with high leverage: Net Debt/EBITDA is -0.7x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fu Shou Yuan International Group Ltd ($1448) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 480 | 612 | 795 | 1,108 | 1,268 | 14.4% |
| Gross Profit | 386 | 492 | 636 | 860 | 1,002 | 16.6% |
| SG&A | 199 | 229 | 349 | 456 | 496 | 9.0% |
| EBITDA | 209 | 316 | 318 | 478 | | -100.0% |
| Net Income | 124 | 167 | 230 | 284 | 339 | 19.2% |
Balance Sheet
|
|---|
| Cash | 287 | 1,544 | 1,297 | 1,277 | 1,239 | -3.0% |
| Short Term Debt | 51 | 39 | 56 | 63 | 60 | -4.7% |
| Long Term Debt | 50 | 38 | 38 | 142 | 108 | -24.1% |
Cash flow
|
|---|
| Capex | 23 | 75 | 77 | 109 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 13.9% | 27.5% | 30.0% | 39.3% | 14.4% | |
| EBITDA growth | 7.3% | 50.8% | 0.8% | 50.2% | | |
| Gross Margin | 80.5% | 80.4% | 80.0% | 77.6% | 79.1% | 1.5% |
| EBITDA Margin | 43.6% | 51.6% | 40.0% | 43.1% | 0.0% | -43.1% |
| Net Income Margin | 25.9% | 27.3% | 29.0% | 25.7% | 26.7% | 1.1% |
| SG&A, % of revenue | 41.5% | 37.4% | 43.9% | 41.1% | 39.2% | -2.0% |
| CAPEX, % of revenue | 4.9% | 12.2% | 9.7% | 9.8% | | -9.8% |
| ROIC | 36.8% | 22.8% | 13.0% | 15.3% | 16.3% | 1.0% |
| ROE | 55.5% | 18.3% | 12.9% | 13.5% | 14.2% | 0.7% |
| Net Debt/EBITDA | -0.9x | -4.6x | -3.8x | -2.2x | | 2.2x |
Revenue and profitability
The company's Revenue surged on 14.4%.
Gross Margin increased slightly on 1.5 pp from 77.6% to 79.1% in FY2016. SG&A as a % of Revenue decreased slightly on 2.0 pp from 41.1% to 39.2% in FY2016.
Net Income marign increased slightly on 1.1 pp from 25.7% to 26.7% in FY2016.
Return on investment
The company operates at good ROIC (16.34%) and ROE (14.21%). ROIC increased slightly on 0.99 pp from 15.3% to 16.3% in FY2016. ROE increased slightly on 0.72 pp from 13.5% to 14.2% in FY2016.
Leverage (Debt)
Debt dropped on 18.1% while cash decreased on 3.0%.
Appendix 1: Peers in Commercial Services
Below you can find Fu Shou Yuan International Group 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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) | 2.6% | 8.6% | 9.8% | 4.0% | 9.5% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | | 27.5% | 30.0% | 39.3% | 14.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| U Banquet Group Holding Ltd ($8107) | | | 76.5% | 74.5% | |
| |
|---|
| Median (61 companies) | 31.5% | 30.5% | 31.0% | 30.9% | 30.8% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | 79.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 84.1% |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | 62.5% |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (67 companies) | 17.5% | 14.9% | 11.2% | 9.8% | 2.0% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 43.6% | 51.6% | 40.0% | 43.1% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
| |
|---|
| Median (67 companies) | 2.7% | 3.4% | 2.4% | 2.8% | 2.3% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 4.9% | 12.2% | 9.7% | 9.8% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 18.8% |
| 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% | 2.0% |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | 36.8% | 22.8% | 13.0% | 15.3% | 16.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 | 3.5x |
| |
|---|
| Median (44 companies) | 0.0x | -0.7x | -0.6x | -0.6x | -2.3x |
|---|
| Fu Shou Yuan International Group Ltd ($1448) | -0.9x | -4.6x | -3.8x | -2.2x | |
