The growth of Yestar International Holdings Co Ltd is hard to miss
22/03/2017 • About Yestar International Holdings Co Ltd (
$2393) • By InTwits
Yestar International Holdings Co Ltd is a fast-growing stock in Distribution/Wholesale industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Yestar International Holdings Co Ltd showed fast growth in the last financial year. The company's revenue surged on 23.1% in FY2016. The growth also happened in EBITDA of 50.9% for the same period.
In the longer period Yestar International Holdings Co Ltd showed fast revenue growth of 37.1% from FY2013 to FY2016 annualy. EBITDA surged on 68.3% from FY2013 to FY2016 annualy.
Yestar International Holdings Co Ltd ($2393) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 956 | 1,173 | 1,531 | 2,455 | 3,022 |
|---|
| Revenue growth, % | | 22.8% | 30.5% | 60.3% | 23.1% |
|---|
| Gross margin, % | 17.5% | 17.8% | 17.2% | 21.1% | 25.4% |
|---|
| SG&A, % | 9.49% | 9.83% | 7.55% | 9.18% | 11.4% |
|---|
| EBITDA | 91 | 112 | 166 | 353 | 532 |
|---|
| EBITDA growth, % | | 22.1% | 49.0% | 112.2% | 50.9% |
|---|
| EBITDA margin, % | 9.56% | 9.51% | 10.9% | 14.4% | 17.6% |
|---|
| Net Income | 57 | 65 | 101 | 163 | 201 |
|---|
| Net Income margin, % | 5.91% | 5.55% | 6.59% | 6.63% | 6.65% |
|---|
| |
| CAPEX | 52 | 23 | 10 | 19 | 0 |
|---|
| CAPEX/Revenue, % | 5.43% | 1.98% | 0.682% | 0.755% | 0% |
|---|
| Debt | 106 | 197 | 171 | 420 | 1,608 |
|---|
| Cash | 160 | 283 | 195 | 506 | 1,273 |
|---|
| Net Debt/EBITDA | -0.6x | -0.8x | -0.1x | -0.2x | 0.6x |
|---|
| |
| ROIC, % | 28.8% | 24.1% | 26.2% | 25.4% | 18.8% |
|---|
| ROE, % | 37.9% | 27.5% | 31.1% | 26.6% | 21.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company showed fast EBITDA margin growth of 3.20 pp from 14.4% to 17.6% in FY2016. If we look for the longer period the company's EBITDA margin surged on 8.10 pp from 9.50% in FY2013 to 17.6% in FY2016.
We call Yestar International Holdings Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 18.8%. Three years ago it was higher at 24.1%. Average ROIC for the last three years was 23.5%.
Net Income margin increased slightly on 0.100 pp from 6.60% to 6.70% in FY2016. In the longer period Yestar International Holdings Co Ltd's Net Income margin surged on 1.20 pp from 5.50% in FY2013 to 6.70% in FY2016.
Yestar International Holdings Co Ltd operates at ROE of 21.7%. It's average ROE for the last three years was 26.5%.
Capital expenditures (CAPEX)
Yestar International Holdings Co Ltd's CAPEX/Revenue was 0% in FY2016. CAPEX/Revenue dropped on 1.98 pp from 1.98% in FY2013 to 0% in FY2016.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.6x Net Debt/EBITDA. In the longer period the company's leverage surged on 1.40x from -0.77x in FY2013 to 0.63x in FY2016.
Peers in Distribution/Wholesale
Below we provide Yestar International Holdings Co Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 |
