Colour Life Services Group Co Ltd is a growth stock to keep your eyes on
26/03/2017 • About Colour Life Services Group Co Ltd (
$1778) • By InTwits
Have you thought about Colour Life Services Group Co Ltd as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Colour Life Services Group Co Ltd showed growth in the last financial year. The company's revenue surged on 62.2% in FY2016. Together with revenue growth Colour Life Services Group Co Ltd also managed to keep EBITDA growth. EBITDA grew 36.1% for the same period.
In the last 3 years the company showed fast revenue growth of 79.2% from FY2013 to FY2016 annualy. EBITDA surged on 57.5% from FY2013 to FY2016 annualy.
Colour Life Services Group Co Ltd ($1778) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 197 | 233 | 389 | 828 | 1,342 |
|---|
| Revenue growth, % | | 18.6% | 67.0% | 112.6% | 62.2% |
|---|
| Gross margin, % | 47.9% | 61.6% | 79.6% | 54.9% | 43.6% |
|---|
| SG&A, % | 25.3% | 25.7% | 24.3% | 28.2% | 23.2% |
|---|
| EBITDA | 62 | 95 | 237 | 274 | 373 |
|---|
| EBITDA growth, % | | 54.8% | 148.0% | 15.8% | 36.1% |
|---|
| EBITDA margin, % | 31.4% | 41.0% | 60.8% | 33.1% | 27.8% |
|---|
| Net Income | 43 | 44 | 146 | 168 | 188 |
|---|
| Net Income margin, % | 22.1% | 19.0% | 37.4% | 20.4% | 14.0% |
|---|
| |
| CAPEX | 11 | 17 | 50 | 51 | 0 |
|---|
| CAPEX/Revenue, % | 5.43% | 7.37% | 12.8% | 6.21% | 0% |
|---|
| Debt | 2 | 10 | 135 | 624 | 1,096 |
|---|
| Cash | 25 | 146 | 687 | 419 | 755 |
|---|
| Net Debt/EBITDA | -0.4x | -1.4x | -2.3x | 0.7x | 0.9x |
|---|
| |
| ROIC, % | 44.2% | 47.9% | 29.3% | 14.5% | 13.1% |
|---|
| ROE, % | 51.4% | 31.1% | 23.3% | 14.5% | 13.8% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the last 3 years the company showed big decline in EBITDA margin of 13.2 pp from 41% in FY2013 to 27.8% in FY2016.
Colour Life Services Group Co Ltd shows attractive ROIC at 13.1% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 47.9%. For the last three years the average ROIC was 19.0%.
Colour Life Services Group Co Ltd's Net Income margin dropped on 6.40 pp from 20.4% to 14% in FY2016. If we look for the longer period Colour Life Services Group Co Ltd showed big decline in Net Income margin of 5 pp from 19% in FY2013 to 14% in FY2016.
Colour Life Services Group Co Ltd operates at ROE of 13.8%. It's average level of ROE for the last three years was 17.2%.
Capital expenditures (CAPEX)
In FY2016 the company had CAPEX/Revenue of 0%. The company's CAPEX/Revenue dropped on 7.37 pp from 7.37% in FY2013 to 0% in FY2016.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.9x Net Debt/EBITDA. In the last 3 years leverage surged on 2.34x from -1.43x in FY2013 to 0.91x in FY2016.
Peers in Real Estate
Below we provide Colour Life Services Group Co Ltd benchmarking against other companies in Real Estate 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 |
|---|
| Guangdong Land Holdings Ltd ($124) | | | | 24,971.2% | |
| GR Properties Ltd ($108) | 21.6% | -82.9% | 14.6% | 1,203.6% | |
| Wanda Hotel Development Co Ltd ($169) | | -51.4% | -86.2% | 1,071.2% | -82.8% |
| Henderson Investment Ltd ($97) | -78.9% | | | 737.1% | |
| ITC Properties Group Ltd ($199) | | -95.2% | 75.7% | 678.6% | 206.4% |
| |
|---|
| Median (180 companies) | 16.4% | 13.5% | 5.2% | 4.3% | 8.2% |
|---|
| Colour Life Services Group Co Ltd ($1778) | | 18.6% | 67.0% | 112.6% | 62.2% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Renhe Commercial Holdings Co Ltd ($1387) | 79.0% | 95.2% | 97.9% | 99.9% | |
| Tern Properties Co Ltd ($277) | 96.7% | 98.4% | 98.4% | 98.7% | 98.8% |
| YT Realty Group Ltd ($75) | 94.4% | 96.6% | 96.7% | 97.6% | |
| Wah Ha Realty Co Ltd ($278) | 96.3% | 96.0% | 93.2% | 95.9% | 92.9% |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| |
|---|
| Median (161 companies) | 41.8% | 41.1% | 38.9% | 38.2% | 44.6% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 47.9% | 61.6% | 79.6% | 54.9% | 43.6% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Chinese Estates Holdings Ltd ($127) | 356.2% | 91.6% | 195.5% | 397.4% | 56.8% |
| Zall Development Group Ltd ($2098) | 105.3% | 133.1% | 143.2% | 213.9% | |
| SOHO China Ltd ($410) | 113.6% | 80.8% | 104.0% | 201.9% | |
| Beijing Properties Holdings Ltd ($925) | -606.3% | 2,162.6% | 224.3% | 186.5% | |
| Swire Properties Ltd ($1972) | 154.5% | 114.6% | 73.2% | 100.3% | 105.1% |
| |
|---|
| Median (180 companies) | 28.9% | 28.3% | 26.4% | 23.2% | 32.5% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 31.4% | 41.0% | 60.8% | 33.1% | 27.8% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 18.0% | 27,965.5% | 4,834.8% | |
| China Oceanwide Holdings Ltd ($715) | 0.8% | 0.3% | 2.0% | 880.6% | |
| Madex International Holdings Ltd ($231) | 174.5% | 519.7% | 205.3% | 350.6% | |
| Pacific Century Premium Developments Ltd ($432) | 2.9% | 323.1% | 351.2% | 340.6% | 570.7% |
| Hon Kwok Land Investment Co Ltd ($160) | 20.6% | 157.3% | 144.5% | 296.3% | 28.1% |
| |
|---|
| Median (180 companies) | 5.6% | 6.1% | 4.7% | 3.2% | 4.0% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 5.4% | 7.4% | 12.8% | 6.2% | |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | 17.9% |
| China Overseas Land & Investment Ltd ($688) | 18.4% | 15.1% | 18.5% | 15.4% | |
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 26.8% | 19.6% | 12.3% | 14.4% | |
| China Vanke Co Ltd ($2202) | 17.8% | 13.5% | 14.6% | 14.1% | |
| |
|---|
| Median (182 companies) | 4.2% | 4.0% | 4.2% | 2.5% | 2.9% |
|---|
| Colour Life Services Group Co Ltd ($1778) | 44.2% | 47.9% | 29.3% | 14.5% | 13.1% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Shui On Land Ltd ($272) | 22.1x | 13.2x | 17.1x | 54.2x | |
| Beijing Capital Land Ltd ($2868) | 7.1x | 4.6x | 11.7x | 49.1x | 37.0x |
| Talent Property Group Ltd ($760) | | | | 43.0x | |
| Mingfa Group International Co Ltd ($846) | 2.5x | 3.0x | 6.3x | 42.9x | |
| Sunshine 100 China Holdings Ltd ($2608) | 9.9x | 12.4x | 12.9x | 42.3x | |
| |
|---|
| Median (137 companies) | 2.3x | 2.7x | 3.0x | 3.2x | 2.9x |
|---|
| Colour Life Services Group Co Ltd ($1778) | -0.4x | -1.4x | -2.3x | 0.7x | 0.9x |
