Karrie International Hldgs CAPEX jumped on 80.4% in 2015 and Revenue jumped on 27.4%
29/06/2015 • About Karrie International Hldgs (
$1050) • By InTwits
Karrie International Hldgs reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.9% in FY2015, 6.6% in FY2014, 5.0% in FY2013, 2.7% in FY2012, 2.7% in FY2011
- Karrie International Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's in pair with industry average of 67.4%.
- CAPEX is quite volatile: 192 in FY2015, 106 in FY2014, 107 in FY2013, 112 in FY2012, 66.5 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Karrie International Hldgs ($1050) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,591 | 2,290 | 2,291 | 2,033 | 2,591 | 27.4% |
| Gross Profit | 174 | 189 | 242 | 291 | 284 | -2.3% |
| SG&A | 124 | 140 | 151 | 171 | 165 | -3.5% |
| EBITDA | 71 | 61 | 114 | 134 | 153 | 14.2% |
| Net Income | 21 | 25 | 39 | 34 | 76 | 122.5% |
Balance Sheet
|
|---|
| Cash | 197 | 411 | 244 | 196 | 224 | 14.6% |
| Short Term Debt | 365 | 423 | 271 | 149 | 359 | 141.2% |
| Long Term Debt | 0 | 0 | 0 | 15 | 7 | -53.7% |
Cash flow
|
|---|
| Capex | 66 | 112 | 107 | 106 | 192 | 80.4% |
Ratios
|
|---|
| Revenue growth | 15.4% | -11.6% | 0.1% | -11.3% | 27.4% | |
| EBITDA growth | 27.3% | -13.8% | 87.2% | 17.4% | 14.2% | |
| Gross Margin | 6.7% | 8.2% | 10.6% | 14.3% | 11.0% | -3.3% |
| EBITDA Margin | 2.7% | 2.7% | 5.0% | 6.6% | 5.9% | -0.7% |
| Net Income Margin | 0.8% | 1.1% | 1.7% | 1.7% | 2.9% | 1.3% |
| SG&A, % of revenue | 4.8% | 6.1% | 6.6% | 8.4% | 6.4% | -2.0% |
| CAPEX, % of revenue | 2.6% | 4.9% | 4.7% | 5.2% | 7.4% | 2.2% |
| ROIC | 1.7% | 1.1% | 4.4% | 7.0% | 5.5% | -1.5% |
| ROE | 2.7% | 2.9% | 4.3% | 3.7% | 7.9% | 4.2% |
| Net Debt/EBITDA | 2.4x | 0.2x | 0.2x | -0.2x | 0.9x | 1.2x |
Revenue and profitability
Karrie International Hldgs's Revenue jumped on 27.4% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.68 pp from 6.6% to 5.9% in FY2015.
Gross Margin decreased on 3.3 pp from 14.3% to 11.0% in FY2015. SG&A as a % of Revenue decreased on 2.0 pp from 8.4% to 6.4% in FY2015.
Net Income marign increased slightly on 1.3 pp from 1.7% to 2.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.4% in FY2015. CAPEX/Revenue increased on 2.5 pp from 4.9% in FY2012 to 7.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.8%.The company has spent a lot to CAPEX (126% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (5.53%) and ROE (7.92%). ROIC decreased slightly on 1.5 pp from 7.0% to 5.5% in FY2015. ROE increased on 4.2 pp from 3.7% to 7.9% in FY2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA jumped on 1.2x from -0.2x to 0.9x in FY2015. Debt jumped on 124% in FY2015 while cash surged on 14.6% in FY2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find Karrie International Hldgs benchmarking vs. other companies in Miscellaneous Manufactur 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 37.4% | 59.5% | 45.9% | 45.0% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | 29.3% | 28.2% | 25.4% | 25.6% | |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| |
|---|
| Median (25 companies) | 22.4% | -1.8% | -0.7% | 8.2% | -11.5% |
|---|
| Karrie International Hldgs ($1050) | | -11.6% | 0.1% | -11.3% | 27.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| |
|---|
| Median (24 companies) | 21.0% | 19.8% | 20.8% | 24.9% | 23.1% |
|---|
| Karrie International Hldgs ($1050) | 6.7% | 8.2% | 10.6% | 14.3% | 11.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | |
| |
|---|
| Median (25 companies) | 10.7% | 8.1% | 9.8% | 9.8% | 3.5% |
|---|
| Karrie International Hldgs ($1050) | 2.7% | 2.7% | 5.0% | 6.6% | 5.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | |
| |
|---|
| Median (25 companies) | 5.2% | 4.7% | 4.2% | 4.2% | 2.6% |
|---|
| Karrie International Hldgs ($1050) | 2.6% | 4.9% | 4.7% | 5.2% | 7.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| |
|---|
| Median (25 companies) | 8.0% | 4.4% | 3.6% | 3.9% | 1.3% |
|---|
| Karrie International Hldgs ($1050) | 1.7% | 1.1% | 4.4% | 7.0% | 5.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (21 companies) | -0.3x | -0.3x | -0.3x | 0.1x | -3.6x |
|---|
| Karrie International Hldgs ($1050) | 2.4x | 0.2x | 0.2x | -0.2x | 0.9x |
