China Xidelang (Holdings) Ltd. established in 1993, which firmly runs with the business philosophy of “Set the firm business target so that create outstanding brand” and tightly follow the times trend of “base on production, key for development and lead by sales” so as to seek for the wholly development for enterprise. The main products are running shoes, basketball shoes, leisure shoes, skating shoes and tennis shoes.
XDL’s has recorded a stable in its revenue and growth in its profits since FY2009.
|FY||Revenue ('000)||Revenue Growth||Net Profit ('000)||Net Profit Growth||Net Profit Margin|
In Revenue and Net Profit growth rates, XDL’s show a substantial increase in FY 2010. The revenue has maintained from RM460k to RM480k, while its revenue maintained from RM80k to RM88k for the latest 3 FY.
XDL’s Net Profit Margin has maintained around 17 - 18% level. It is a good profit margin compare to other industry.
|Current Assets (RM'000)||192,469||175,214||227,955||244,371|
|Current Liabilities (RM'000)||107,931||92,289||95,055||56,998|
XDL’s has putting much effort in controlling their liabilities with a healthy level. Current ratio increased substantially due to significant decreased in current liabilities and increased in current asset. The company is now standing at “Zero Debt” financial position.
For those concerned about dividend payouts, XDL’s only paid RM0.025 in FY2010.
XDL’s PE Ratio has maintain at “attractive” level, from 2.60 in FY2009, 2.24 in FY2010, 2.01 in FY2011, to 2.20 in FY2012.
|Net Cash Generated from Operating (RM'000)||75,471||77,066|
|Net Cash Generated from Investing (RM'000)||-58,539||-50,915|
|Net Cash Generated from Financing (RM'000)||11,675||9,671|
|Cash and Cash Equivalents at End (RM'000)||116,316||149,741|
XDL’s has kept its record in generating positive cash flow from operating activities since FY2009. XDL’s then use this cash to purchase more fixed assets and reduced the interest component liabilities. The company is now having more flexibility in using its cash.
XDL's is one of the famous brands in China. As China emerge as one of the Strongest Competitors in global market, our team expect XDL's will further expands their business and generate good return for their investor. Although XDL's paid the only dividend in FY2010, but XDL's has uses the cash to purchase fixed assets for further business expands. Besides, the company also having “Zero Debt”, where its operation cost won’t affect by fluctuate in interest rate. In terms of PE ratio, our team would like to see this as “undervalued” stock. Our team is optimistic on its long term financial performance.
By the Young Investors Team