Kai Shi China Holdings Co Ltd revenue surged on 424% in 2015 while EBITDA Margin dropped on 17.0 pp from 23.7% to 6.8%
04/03/2016 • About Kai Shi China Holdings Co Ltd (
$1281) • By InTwits
Kai Shi China Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.8% in 2015, 23.7% in 2014, 14.6% in 2013, 15.8% in 2012, 48.6% in 2011
- Kai Shi China Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's a lot of higher than industry average of 4.6%.
- CAPEX is quite volatile: 0.79 in 2015, 0.52 in 2014, 17.5 in 2013, 2.1 in 2012, 5.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kai Shi China Holdings Co Ltd ($1281) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 505.3 | 105.7 | 61.1 | 61.8 | 324.2 | 424.3% |
| Gross Profit | 287.0 | 53.7 | 16.0 | 20.0 | 31.8 | 58.8% |
| SG&A | | 39.4 | 10.4 | 7.9 | 10.5 | 32.9% |
| EBITDA | 245.4 | 16.7 | 9.0 | 14.7 | 22.0 | 49.8% |
| Net Income | 150.4 | 31.0 | 6.3 | -70.2 | 13.0 | -118.5% |
Balance Sheet
|
|---|
| Cash | 116.5 | 88.3 | 39.1 | 6.3 | 158.5 | 2,420.2% |
| Short Term Debt | 0.0 | 200.0 | 118.9 | 78.0 | 220.0 | 182.1% |
| Long Term Debt | 200.0 | 0.0 | 0.0 | 0.0 | 300.0 | |
Cash flow
|
|---|
| Capex | 5.1 | 2.1 | 17.5 | 0.5 | 0.8 | 50.4% |
Ratios
|
|---|
| Revenue growth | 82.5% | -79.1% | -42.2% | 1.2% | 424.3% | |
| EBITDA growth | 162.4% | -93.2% | -46.4% | 64.0% | 49.8% | |
| Gross Margin | 56.8% | 50.8% | 26.2% | 32.4% | 9.8% | -22.6% |
| EBITDA Margin | 48.6% | 15.8% | 14.6% | 23.7% | 6.8% | -17.0% |
| Net Income Margin | 29.8% | 29.4% | 10.3% | -113.5% | 4.0% | 117.5% |
| SG&A, % of revenue | | 37.3% | 16.9% | 12.8% | 3.2% | -9.5% |
| CAPEX, % of revenue | 1.0% | 2.0% | 28.7% | 0.8% | 0.2% | -0.6% |
| ROIC | 54.9% | 2.3% | 0.9% | 2.5% | 4.5% | 2.0% |
| ROE | 98.4% | 12.2% | 1.9% | -23.6% | 7.7% | 31.3% |
| Net Debt/EBITDA | 0.3x | 6.7x | 8.9x | 4.9x | 16.4x | 11.6x |
Revenue and profitability
Kai Shi China Holdings Co Ltd's Revenue jumped on 424% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 13.9 pp from 31.9% to 45.8% in 2015.
Gross Margin dropped on 22.6 pp from 32.4% to 9.8% in 2015. SG&A as a % of Revenue decreased on 9.5 pp from 12.8% to 3.2% in 2015.
Net Income marign jumped on 117 pp from -113% to 4.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Kai Shi China Holdings Co Ltd's CAPEX/Revenue was 0.24% in 2015. CAPEX/Revenue decreased slightly on 1.7 pp from 2.0% in 2012 to 0.24% in 2015. For the last three years the average CAPEX/Revenue was 9.9%.
Return on investment
The company operates at low ROIC (4.45%) and ROE (7.72%). ROIC increased slightly on 2.0 pp from 2.5% to 4.5% in 2015. ROE surged on 31.3 pp from -23.6% to 7.7% in 2015.
Leverage (Debt)
Debt level is 16.4x Net Debt / EBITDA and 23.7x Debt / EBITDA. Net Debt / EBITDA surged on 11.6x from 4.9x to 16.4x in 2015. Debt surged on 567% in 2015 while cash jumped on 2,420% in 2015.
Appendix 1: Peers in Real Estate
Below we provide Kai Shi China Holdings Co Ltd benchmarking against other companies in Real Estate 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 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| Landsea Green Properties Co Ltd ($106) | -91.1% | -35.1% | -51.2% | 3,097.3% | |
| LVGEM China Real Estate Invest ($95) | -0.1% | -27.5% | -21.9% | 3,008.3% | |
| Rivera Holdings Ltd ($281) | 222.2% | 197.1% | -89.9% | 2,067.2% | |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (173 companies) | 13.8% | 15.8% | 13.1% | 5.2% | 3.4% |
|---|
| Kai Shi China Holdings Co Ltd ($1281) | | -79.1% | -42.2% | 1.2% | 424.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (155 companies) | 43.6% | 41.9% | 41.8% | 39.3% | 48.6% |
|---|
| Kai Shi China Holdings Co Ltd ($1281) | 56.8% | 50.8% | 26.2% | 32.4% | 9.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (173 companies) | 35.1% | 29.1% | 28.2% | 27.3% | 34.3% |
|---|
| Kai Shi China Holdings Co Ltd ($1281) | 48.6% | 15.8% | 14.6% | 23.7% | 6.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% |
| Wanda Hotel Development Co Ltd ($169) | | 5.9% | 24.1% | 1,091.1% | |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | 340.6% |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | 0.9% |
| |
|---|
| Median (174 companies) | 5.9% | 5.5% | 6.1% | 4.7% | 6.8% |
|---|
| Kai Shi China Holdings Co Ltd ($1281) | 1.0% | 2.0% | 28.7% | 0.8% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| Colour Life Services Group Co Ltd ($1778) | | 44.2% | 47.9% | 29.3% | 14.5% |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | |
| |
|---|
| Median (177 companies) | 4.6% | 4.1% | 3.9% | 3.9% | 2.4% |
|---|
| Kai Shi China Holdings Co Ltd ($1281) | 54.9% | 2.3% | 0.9% | 2.5% | 4.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 10.6x | 14.1x | 24.7x | 1,184.6x | |
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| |
|---|
| Median (140 companies) | 2.1x | 2.2x | 2.7x | 2.9x | 1.5x |
|---|
| Kai Shi China Holdings Co Ltd ($1281) | 0.3x | 6.7x | 8.9x | 4.9x | 16.4x |
