Kin Yat Holdings Ltd revenue surged on 17.1% in 2015 and EBITDA Margin showed almost no change
30/06/2015 • About Kin Yat Holdings Ltd (
$638) • By InTwits
Kin Yat Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kin Yat Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: 6.3 in 2015, 11.9 in 2014, 18.7 in 2013, 59.8 in 2012, 58.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kin Yat Holdings Ltd ($638) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,723 | 1,620 | 1,763 | 1,852 | 2,169 | 17.1% |
| Gross Profit | 283 | 160 | 226 | 234 | 268 | 14.8% |
| SG&A | | 205 | 208 | 214 | 194 | -9.4% |
| EBITDA | 212 | 78 | 147 | 163 | 186 | 14.4% |
| Net Income | 114 | -28 | 39 | 20 | -122 | -713.5% |
Balance Sheet
|
|---|
| Cash | 166 | 180 | 221 | 176 | 152 | -13.6% |
| Short Term Debt | 171 | 153 | 159 | 188 | 146 | -22.4% |
| Long Term Debt | 0 | 154 | 110 | 60 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 136 | 160 | 82 | 138 | 104 | -24.3% |
Ratios
|
|---|
| Revenue growth | 19.1% | -5.9% | 8.8% | 5.0% | 17.1% | |
| EBITDA growth | -21.8% | -63.4% | 90.3% | 10.4% | 14.4% | |
| Gross Margin | 16.4% | 9.9% | 12.8% | 12.6% | 12.4% | -0.3% |
| EBITDA Margin | 12.3% | 4.8% | 8.4% | 8.8% | 8.6% | -0.2% |
| Net Income Margin | 6.6% | -1.7% | 2.2% | 1.1% | -5.6% | -6.7% |
| SG&A, % of revenue | | 12.6% | 11.8% | 11.5% | 8.9% | -2.6% |
| CAPEX, % of revenue | 7.9% | 9.8% | 4.6% | 7.5% | 4.8% | -2.6% |
| ROIC | 11.4% | -0.7% | 4.5% | 4.9% | 6.2% | 1.3% |
| ROE | 11.6% | -2.8% | 3.7% | 1.8% | -11.3% | -13.0% |
| Net Debt/EBITDA | 0.0x | 1.6x | 0.3x | 0.4x | -0.0x | -0.5x |
Revenue and profitability
The company's Revenue surged on 17.1% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue decreased on 2.6 pp from 11.5% to 8.9% in FY2015.
Net Income marign decreased on 6.7 pp from 1.1% to -5.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Kin Yat Holdings Ltd's CAPEX/Revenue was 4.8% in FY2015. CAPEX/Revenue decreased on 5.0 pp from 9.8% in FY2012 to 4.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.6%.To maintain this fast growth Kin Yat Holdings Ltd invested a large share of EBITDA (56.0%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (6.16%) and negative ROE (-11.26%). ROIC increased slightly on 1.3 pp from 4.9% to 6.2% in FY2015. ROE dropped on 13.0 pp from 1.8% to -11.3% in FY2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 0.4x to -0.030x in FY2015. Debt dropped on 41.1% in FY2015 while cash dropped on 13.6% in FY2015.
Appendix 1: Peers in Toys/Games/Hobbies
Below we provide Kin Yat Holdings Ltd benchmarking against other companies in Toys/Games/Hobbies 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kiu Hung International Holdings Ltd ($381) | -0.8% | 4.5% | -11.9% | 34.8% | |
| Playmates Toys Ltd ($869) | -69.7% | 726.8% | 346.3% | 30.2% | |
| Playmates Holdings Ltd ($635) | -38.2% | 200.7% | 283.5% | 27.5% | |
| Dream International Ltd ($1126) | -29.9% | 24.9% | -0.1% | 21.0% | |
| Leyou Technologies Holdings Ltd ($1089) | 4.7% | 18.8% | 32.3% | 17.7% | |
| |
|---|
| Median (9 companies) | -9.8% | 18.8% | 17.5% | 17.7% | 7.2% |
|---|
| Kin Yat Holdings Ltd ($638) | | -5.9% | 8.8% | 5.0% | 17.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | 68.1% | 65.7% | 66.1% | 64.7% | |
| Playmates Toys Ltd ($869) | 28.6% | 60.3% | 62.8% | 61.9% | |
| Matrix Holdings Ltd ($1005) | 35.2% | 34.3% | 37.1% | 38.4% | |
| Kiu Hung International Holdings Ltd ($381) | 20.8% | 30.9% | 29.0% | 32.1% | |
| Dream International Ltd ($1126) | 24.3% | 25.6% | 29.1% | 22.4% | |
| |
|---|
| Median (8 companies) | 22.5% | 28.2% | 29.1% | 27.3% | 10.5% |
|---|
| Kin Yat Holdings Ltd ($638) | 16.4% | 9.9% | 12.8% | 12.6% | 12.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | -14.7% | 22.0% | 36.7% | 33.5% | |
| Playmates Toys Ltd ($869) | -186.4% | 15.1% | 33.0% | 30.2% | |
| Matrix Holdings Ltd ($1005) | 11.0% | 10.2% | 13.2% | 15.0% | |
| Dream International Ltd ($1126) | 10.3% | 13.2% | 14.8% | 9.8% | |
| Kader Holdings Co Ltd ($180) | -6.7% | -4.2% | -3.0% | 5.8% | |
| |
|---|
| Median (9 companies) | 5.1% | 9.8% | 5.6% | 5.8% | 2.4% |
|---|
| Kin Yat Holdings Ltd ($638) | 12.3% | 4.8% | 8.4% | 8.8% | 8.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 1.7% | 1.5% | 2.2% | 12.7% | 3.0% |
| Dream International Ltd ($1126) | 2.6% | 2.9% | 3.8% | 11.2% | |
| Green International Holdings Ltd ($2700) | 0.1% | 0.2% | 3.2% | 6.5% | |
| Kader Holdings Co Ltd ($180) | 4.0% | 3.5% | 3.7% | 2.8% | |
| Matrix Holdings Ltd ($1005) | 5.8% | 4.7% | 3.2% | 2.8% | |
| |
|---|
| Median (9 companies) | 4.0% | 3.5% | 3.2% | 2.8% | 3.0% |
|---|
| Kin Yat Holdings Ltd ($638) | 7.9% | 9.8% | 4.6% | 7.5% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Toys Ltd ($869) | -48.9% | 30.7% | 121.1% | 73.0% | |
| Matrix Holdings Ltd ($1005) | 5.8% | 5.9% | 13.1% | 18.6% | |
| Dream International Ltd ($1126) | 12.4% | 19.3% | 19.4% | 13.3% | |
| Playmates Holdings Ltd ($635) | -1.0% | 2.4% | 12.6% | 12.0% | |
| Quali-Smart Holdings Ltd ($1348) | 24.2% | 31.3% | 16.2% | 9.1% | -0.3% |
| |
|---|
| Median (9 companies) | 2.4% | 5.9% | 12.6% | 9.1% | -0.3% |
|---|
| Kin Yat Holdings Ltd ($638) | 11.4% | -0.7% | 4.5% | 4.9% | 6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kader Holdings Co Ltd ($180) | | | | 9.6x | |
| Leyou Technologies Holdings Ltd ($1089) | -1.4x | 1.1x | 4.4x | 3.8x | |
| Quali-Smart Holdings Ltd ($1348) | 1.2x | 0.6x | -0.7x | 0.9x | 4.5x |
| Matrix Holdings Ltd ($1005) | 0.5x | 0.6x | 0.0x | -0.2x | |
| Playmates Holdings Ltd ($635) | | 0.6x | -0.4x | -1.0x | |
| |
|---|
| Median (7 companies) | 0.5x | 0.6x | -0.5x | -0.2x | 4.5x |
|---|
| Kin Yat Holdings Ltd ($638) | 0.0x | 1.6x | 0.3x | 0.4x | -0.0x |
