Shenzhou International Group Holdings Ltd EBITDA surged on 30.3% in 2016 and EBITDA Margin increased on 2.4 pp from 26.7% to 29.1%
27/03/2017 • About Shenzhou International Group Holdings Ltd (
$2313) • By InTwits
Shenzhou International Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shenzhou International Group Holdings Ltd is a growth stock: FY2016 revenue growth was 19.5%, 5 year revenue CAGR was 10.8% at FY2016 ROIC 20.0%
- The company has highly profitable business model: ROIC is at 20.0%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is -4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shenzhou International Group Holdings Ltd ($2313) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,938 | 10,047 | 11,132 | 12,639 | 15,099 | 19.5% |
| Gross Profit | 2,545 | 2,839 | 3,227 | 3,849 | 4,909 | 27.6% |
| SG&A | 744 | 861 | 1,041 | 1,218 | 1,456 | 19.6% |
| EBITDA | 2,356 | 2,632 | 2,910 | 3,374 | 4,397 | 30.3% |
| Net Income | 1,620 | 1,803 | 2,066 | 2,355 | 2,948 | 25.2% |
Balance Sheet
|
|---|
| Cash | 2,144 | 2,609 | 1,428 | 1,816 | 2,105 | 15.9% |
| Short Term Debt | 786 | 0 | 47 | 657 | 1,241 | 89.0% |
| Long Term Debt | 0 | 0 | 2,865 | 3,117 | 3,410 | 9.4% |
Cash flow
|
|---|
| Capex | 650 | 792 | 1,132 | 2,038 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -1.2% | 12.4% | 10.8% | 13.5% | 19.5% | |
| EBITDA growth | -2.6% | 11.7% | 10.6% | 15.9% | 30.3% | |
| Gross Margin | 28.5% | 28.3% | 29.0% | 30.5% | 32.5% | 2.1% |
| EBITDA Margin | 26.4% | 26.2% | 26.1% | 26.7% | 29.1% | 2.4% |
| Net Income Margin | 18.1% | 17.9% | 18.6% | 18.6% | 19.5% | 0.9% |
| SG&A, % of revenue | 8.3% | 8.6% | 9.4% | 9.6% | 9.6% | 0.0% |
| CAPEX, % of revenue | 7.3% | 7.9% | 10.2% | 16.1% | | -16.1% |
| ROIC | 24.0% | 22.9% | 19.6% | 17.9% | 20.0% | 2.1% |
| ROE | 22.9% | 19.6% | 18.7% | 18.9% | 20.9% | 2.0% |
| Net Debt/EBITDA | -0.6x | -1.0x | 0.5x | 0.6x | 0.6x | -0.0x |
Revenue and profitability
Shenzhou International Group Holdings Ltd's Revenue jumped on 19.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from 13.3% to 9.6% in FY2016.
Gross Margin increased on 2.1 pp from 30.5% to 32.5% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 0.89 pp from 18.6% to 19.5% in FY2016.
Return on investment
The company operates at high and attractive ROE (20.93%) while ROIC is a bit lower (19.97%). ROIC increased on 2.1 pp from 17.9% to 20.0% in FY2016. ROE increased slightly on 2.0 pp from 18.9% to 20.9% in FY2016.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA showed almost no change in FY2016. Debt surged on 23.3% while cash surged on 15.9%.
Appendix 1: Peers in Apparel
Below you can find Shenzhou International Group Holdings Ltd benchmarking vs. other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | | 46.8% | 20.4% | 33.1% | 3.6% |
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
| Koradior Holdings Ltd ($3709) | | 44.7% | 47.7% | 23.9% | 24.5% |
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
| Cosmo Lady China Holdings Co Ltd ($2298) | | 29.2% | 37.4% | 23.6% | -8.9% |
| |
|---|
| Median (52 companies) | 12.3% | 5.4% | 5.4% | -2.6% | -6.3% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | | 12.4% | 10.8% | 13.5% | 19.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | 59.7% |
| |
|---|
| Median (51 companies) | 24.8% | 23.5% | 24.9% | 25.0% | 18.7% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 28.5% | 28.3% | 29.0% | 30.5% | 32.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | 28.6% |
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | 22.9% |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| HOSA International Ltd ($2200) | 44.4% | 42.2% | 37.6% | 26.7% | |
| |
|---|
| Median (52 companies) | 10.5% | 10.2% | 7.2% | 6.6% | 3.3% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | 29.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | 1.8% |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| Citychamp Watch & Jewellery Group Ltd ($256) | 6.5% | 5.6% | 3.6% | 8.6% | |
| |
|---|
| Median (51 companies) | 2.2% | 3.0% | 2.3% | 2.3% | 2.1% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | 16.1% |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | 16.4% |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (52 companies) | 10.5% | 7.2% | 4.4% | 4.9% | 1.1% |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | 24.0% | 22.9% | 19.6% | 17.9% | 20.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | 1.7x |
| |
|---|
| Median (38 companies) | -0.2x | -0.6x | -0.4x | -1.2x | -1.1x |
|---|
| Shenzhou International Group Holdings Ltd ($2313) | -0.6x | -1.0x | 0.5x | 0.6x | 0.6x |
