Sunwah Kingsway Capital Holdings Ltd Net Income dropped on 71.5% in 2015 and Revenue dropped on 23.0%
17/09/2015 • About Sunwah Kingsway Capital Holdings Ltd (
$188) • By InTwits
Sunwah Kingsway Capital Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sunwah Kingsway Capital Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is 1.1%
- Sunwah Kingsway Capital Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 132.0%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 0.36 in FY2015, 0.068 in FY2014, 5.5 in FY2013, 229 in FY2012, 1.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sunwah Kingsway Capital Holdings Ltd ($188) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 183.8 | 34.9 | 113.5 | 170.1 | 130.9 | -23.0% |
| EBITDA | 50.3 | -106.9 | 13.1 | 49.7 | 24.6 | -50.4% |
| Net Income | 46.6 | -119.2 | -2.3 | 31.9 | 9.1 | -71.5% |
Balance Sheet
|
|---|
| Cash | 244.8 | 130.1 | 70.9 | 239.1 | 369.5 | 54.5% |
| Short Term Debt | 0.1 | 0.0 | 71.6 | 82.4 | 95.0 | 15.3% |
| Long Term Debt | 0.0 | 103.0 | 82.4 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.1 | 228.5 | 5.5 | 0.1 | 0.4 | 426.4% |
Ratios
|
|---|
| Revenue growth | 39.3% | -81.0% | 225.1% | 49.8% | -23.0% | |
| EBITDA growth | 168.1% | -312.8% | -112.3% | 279.3% | -50.4% | |
| EBITDA Margin | 27.3% | -306.3% | 11.5% | 29.2% | 18.8% | -10.4% |
| Net Income Margin | 25.3% | -341.3% | -2.1% | 18.7% | 6.9% | -11.8% |
| CAPEX, % of revenue | 0.6% | 654.5% | 4.8% | 0.0% | 0.3% | 0.2% |
| ROIC | 7.5% | -16.6% | -0.0% | 4.5% | 1.1% | -3.3% |
| ROE | 7.5% | -19.5% | -0.4% | 4.9% | 1.1% | -3.8% |
| Net Debt/EBITDA | -4.9x | | 6.3x | -3.2x | -11.1x | -8.0x |
Revenue and profitability
The company's Revenue dropped on 23.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 80.9 pp from -7.3% to 73.6% in FY2015.
Net Income marign dropped on 11.8 pp from 18.7% to 6.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.27% in FY2015. The company showed big decline in CAPEX/Revenue of 654 pp from 655% in FY2012 to 0.27% in FY2015. It's average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at low ROIC (1.15%) and ROE (1.08%). ROIC decreased on 3.3 pp from 4.5% to 1.1% in FY2015. ROE decreased on 3.8 pp from 4.9% to 1.1% in FY2015.
Leverage (Debt)
Debt level is -11.1x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA dropped on 8.0x from -3.2x to -11.1x in FY2015. Debt jumped on 15.3% in FY2015 while cash surged on 54.5% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Sunwah Kingsway Capital Holdings Ltd benchmarking vs. other companies in Diversified Finan Serv 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 |
|---|
| China New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 6.8% | 1.2% | 12.9% | 24.9% | 21.4% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | | -81.0% | 225.1% | 49.8% | -23.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 90.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 36.2% | 47.2% | 32.6% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | 27.3% | -306.3% | 11.5% | 29.2% | 18.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.8% | 1.7% | 1.1% | 2.6% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | 0.6% | 654.5% | 4.8% | 0.0% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.6% | 3.9% | 4.0% | 4.8% | 3.1% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | 7.5% | -16.6% | -0.0% | 4.5% | 1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (45 companies) | -1.0x | -1.0x | -0.0x | 0.1x | 2.2x |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | -4.9x | | 6.3x | -3.2x | -11.1x |
