Kwoon Chung Bus Holdings Ltd reports 132% Net Income growth and 7.9% Revenue growth
01/07/2015 • About Kwoon Chung Bus Holdings Ltd (
$306) • By InTwits
Kwoon Chung Bus Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 26.1% in FY2015 vs. 20.7% in FY2014 vs. 15.4% in FY2011
- Kwoon Chung Bus Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.8%. At the same time it's in pair with industry average of 3.5%.
- CAPEX is quite volatile: 155 in FY2015, 62.8 in FY2014, 37.7 in FY2013, 111 in FY2012, 23.6 in FY2011
- The company has highly profitable business model: ROIC is at 14.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kwoon Chung Bus Holdings Ltd ($306) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,105 | 1,923 | 2,075 | 2,189 | 2,362 | 7.9% |
| Gross Profit | 371 | 363 | 424 | 497 | 634 | 27.6% |
| SG&A | | | | 293 | 305 | 4.2% |
| EBITDA | 325 | 255 | 334 | 453 | 616 | 36.1% |
| Net Income | 120 | 103 | 117 | 165 | 383 | 132.1% |
Balance Sheet
|
|---|
| Cash | 354 | 299 | 296 | 387 | 565 | 45.9% |
| Short Term Debt | 513 | 826 | 783 | 727 | 1,217 | 67.5% |
| Long Term Debt | 0 | 0 | 0 | 1 | 0 | -37.7% |
Cash flow
|
|---|
| Capex | 338 | 309 | 257 | 140 | 306 | 117.8% |
Ratios
|
|---|
| Revenue growth | 13.0% | -8.6% | 7.9% | 5.5% | 7.9% | |
| EBITDA growth | 9.6% | -21.6% | 31.1% | 35.5% | 36.1% | |
| Gross Margin | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% | 4.1% |
| EBITDA Margin | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% | 5.4% |
| Net Income Margin | 5.7% | 5.3% | 5.6% | 7.5% | 16.2% | 8.7% |
| SG&A, % of revenue | | | | 13.4% | 12.9% | -0.5% |
| CAPEX, % of revenue | 16.1% | 16.1% | 12.4% | 6.4% | 12.9% | 6.5% |
| ROIC | 6.9% | 3.6% | 5.7% | 9.2% | 14.6% | 5.4% |
| ROE | 11.4% | 8.9% | 9.1% | 11.6% | 25.8% | 14.2% |
| Net Debt/EBITDA | 0.5x | 2.1x | 1.5x | 0.8x | 1.1x | 0.3x |
Revenue and profitability
The company's Revenue increased on 7.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.4 pp from 20.7% to 26.1% in FY2015.
Gross Margin increased on 4.1 pp from 22.7% to 26.8% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 8.7 pp from 7.5% to 16.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 12.9% in FY2015. CAPEX/Revenue decreased on 3.1 pp from 16.1% in FY2012 to 12.9% in FY2015. For the last three years the average CAPEX/Revenue was 10.6%.
Return on investment
The company operates at high and attractive ROE (25.75%) while ROIC is a bit lower (14.61%). ROIC increased on 5.4 pp from 9.2% to 14.6% in FY2015. ROE surged on 14.2 pp from 11.6% to 25.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 2.0x. Net Debt / EBITDA surged on 0.3x from 0.8x to 1.1x in FY2015. Debt jumped on 67.4% in FY2015 while cash jumped on 45.9% in FY2015.
Appendix 1: Peers in Transportation
Below we provide Kwoon Chung Bus Holdings Ltd benchmarking against other companies in Transportation 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 |
|---|
| Frontier Services Group Ltd ($500) | -90.5% | -10.8% | -49.9% | 1,021.1% | |
| China Best Group Holding Ltd ($370) | 333.1% | 202.4% | -53.6% | 459.4% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 11.7% | -4.2% | -5.9% | 60.4% | |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | 71.2% | 17.9% | 30.6% | 23.5% | |
| |
|---|
| Median (28 companies) | 8.3% | 7.2% | 4.0% | 5.2% | -0.3% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | | -8.6% | 7.9% | 5.5% | 7.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | |
| Frontier Services Group Ltd ($500) | 80.7% | 83.8% | 65.9% | 44.8% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| ASR Logistics Holdings Ltd ($1803) | 30.7% | 27.4% | 26.6% | 18.0% | |
| |
|---|
| Median (25 companies) | 18.1% | 12.5% | 9.8% | 10.0% | 3.1% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 61.3% | 56.3% | 18.7% | 32.6% | -8.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | |
| |
|---|
| Median (29 companies) | 16.5% | 9.9% | 7.4% | 7.8% | -1.2% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | 0.0% | | 296.6% | 1.4% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | |
| China Shipping Development Co Ltd ($1138) | 68.9% | 55.8% | 34.0% | 54.9% | |
| Courage Marine Group Ltd ($1145) | 78.9% | 235.0% | 37.7% | 50.4% | |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | |
| |
|---|
| Median (29 companies) | 11.1% | 7.9% | 9.0% | 7.4% | 1.4% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 16.1% | 16.1% | 12.4% | 6.4% | 12.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | |
| ASR Logistics Holdings Ltd ($1803) | 79.6% | 54.7% | 38.9% | 13.4% | |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | |
| |
|---|
| Median (29 companies) | 5.0% | 3.2% | 2.8% | 3.2% | -4.5% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 6.9% | 3.6% | 5.7% | 9.2% | 14.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | |
| Tianjin Binhai Teda Logistics Group Corp Ltd ($8348) | -0.5x | 9.7x | 9.3x | 9.5x | |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| |
|---|
| Median (22 companies) | -0.0x | 1.2x | 1.9x | 1.6x | 4.5x |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 0.5x | 2.1x | 1.5x | 0.8x | 1.1x |
