Kingboard Chemical Holdings Ltd Net Income dropped on 34.9% in 2015 and EBITDA Margin decreased slightly on 1.2 pp from 15.7% to 14.5%
21/03/2016 • About Kingboard Chemical Holdings Ltd (
$148) • By InTwits
Kingboard Chemical Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kingboard Chemical Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 721 in 2015, 1,844 in 2014, 1,645 in 2013, 1,403 in 2012, 3,559 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
- It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kingboard Chemical Holdings Ltd ($148) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 36,559 | 37,290 | 35,683 | 35,906 | 32,788 | -8.7% |
| Gross Profit | 5,742 | 5,094 | 4,643 | 4,597 | 4,795 | 4.3% |
| SG&A | 2,372 | 2,391 | 2,438 | 2,628 | 2,643 | 0.5% |
| EBITDA | 5,568 | 4,916 | 6,042 | 5,644 | 4,768 | -15.5% |
| Net Income | 2,594 | 2,097 | 2,961 | 2,537 | 1,650 | -34.9% |
Balance Sheet
|
|---|
| Cash | 4,437 | 3,915 | 6,363 | 4,559 | 4,854 | 6.5% |
| Short Term Debt | 6,724 | 5,734 | 7,172 | 9,804 | 6,241 | -36.3% |
| Long Term Debt | 11,451 | 12,025 | 16,507 | 12,251 | 14,469 | 18.1% |
Cash flow
|
|---|
| Capex | 3,559 | 1,403 | 1,645 | 1,844 | 721 | -60.9% |
Ratios
|
|---|
| Revenue growth | 7.9% | 2.0% | -4.3% | 0.6% | -8.7% | |
| EBITDA growth | -22.4% | -11.7% | 22.9% | -6.6% | -15.5% | |
| Gross Margin | 15.7% | 13.7% | 13.0% | 12.8% | 14.6% | 1.8% |
| EBITDA Margin | 15.2% | 13.2% | 16.9% | 15.7% | 14.5% | -1.2% |
| Net Income Margin | 7.1% | 5.6% | 8.3% | 7.1% | 5.0% | -2.0% |
| SG&A, % of revenue | 6.5% | 6.4% | 6.8% | 7.3% | 8.1% | 0.7% |
| CAPEX, % of revenue | 9.7% | 3.8% | 4.6% | 5.1% | 2.2% | -2.9% |
| ROIC | 7.0% | 5.0% | 6.2% | 5.0% | 3.9% | -1.1% |
| ROE | 9.6% | 7.1% | 9.1% | 7.3% | 4.7% | -2.6% |
| Net Debt/EBITDA | 2.5x | 2.8x | 2.9x | 3.1x | 3.3x | 0.2x |
Revenue and profitability
Kingboard Chemical Holdings Ltd's Revenue decreased on 8.7% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.2 pp from 15.7% to 14.5% in 2015.
Gross Margin increased slightly on 1.8 pp from 12.8% to 14.6% in 2015. SG&A as a % of Revenue increased slightly on 0.74 pp from 7.3% to 8.1% in 2015.
Net Income marign decreased on 2.0 pp from 7.1% to 5.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.2%. CAPEX/Revenue decreased slightly on 1.6 pp from 3.8% in 2012 to 2.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.0%.
Return on investment
The company operates at low ROIC (3.92%) and ROE (4.65%). ROIC decreased slightly on 1.1 pp from 5.0% to 3.9% in 2015. ROE decreased on 2.6 pp from 7.3% to 4.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.3x and Debt / EBITDA is 4.3x. Net Debt / EBITDA jumped on 0.2x from 3.1x to 3.3x in 2015. Debt decreased on 6.1% in 2015 while cash increased on 6.5% in 2015.
Appendix 1: Peers in Chemicals
Below you can find Kingboard Chemical Holdings Ltd benchmarking vs. other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -25.4% | -62.1% | 330.3% | 238.4% |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 39.7% | -33.6% | 5.5% | 29.1% | |
| China XLX Fertiliser Ltd ($1866) | | 7.0% | 0.6% | 28.0% | 13.9% |
| Century Sunshine Group Holdings Ltd ($509) | 49.2% | 68.7% | 32.0% | 26.4% | |
| Landing International Development Ltd ($582) | | 2.1% | 15.9% | 23.3% | 10.4% |
| |
|---|
| Median (31 companies) | 34.7% | 2.1% | 10.1% | 2.2% | -0.6% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | | 2.0% | -4.3% | 0.6% | -8.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 74.3% | 70.5% | 69.1% | 70.8% | 69.9% |
| China Flavors & Fragrances Co Ltd ($3318) | 41.3% | 46.8% | 48.6% | 47.8% | 48.9% |
| Smartac Group China Holdings Ltd ($395) | 17.3% | -1.8% | 11.2% | 40.4% | |
| Bracell Ltd ($1768) | 40.1% | 30.5% | 37.3% | 37.3% | 38.4% |
| Yingde Gases Group Co Ltd ($2168) | 34.2% | 31.7% | 31.0% | 32.1% | |
| |
|---|
| Median (31 companies) | 19.8% | 19.5% | 18.5% | 17.7% | 22.3% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 15.7% | 13.7% | 13.0% | 12.8% | 14.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 66.4% | 63.8% | 59.1% | 60.0% | 58.3% |
| Bracell Ltd ($1768) | 30.1% | 22.3% | 30.8% | 38.2% | 35.9% |
| Yingde Gases Group Co Ltd ($2168) | 32.3% | 29.4% | 29.8% | 32.3% | |
| China First Chemical Holdings Ltd ($2121) | 29.7% | 26.6% | 30.0% | 29.6% | |
| Century Sunshine Group Holdings Ltd ($509) | 15.5% | 24.2% | 28.1% | 27.6% | |
| |
|---|
| Median (31 companies) | 15.5% | 15.8% | 12.7% | 11.1% | 12.5% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 15.2% | 13.2% | 16.9% | 15.7% | 14.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Landing International Development Ltd ($582) | 27.9% | 7.2% | 29.6% | 419.5% | 247.4% |
| China Zenith Chemical Group Ltd ($362) | 36.8% | 147.3% | 55.7% | 67.4% | 152.2% |
| Smartac Group China Holdings Ltd ($395) | 22.5% | 14.0% | 4.7% | 49.3% | |
| China Flavors & Fragrances Co Ltd ($3318) | 16.4% | 15.8% | 20.1% | 42.4% | 35.8% |
| Bracell Ltd ($1768) | 24.4% | 22.3% | 64.3% | 35.4% | 11.7% |
| |
|---|
| Median (31 companies) | 8.3% | 9.6% | 8.7% | 5.9% | 8.1% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 9.7% | 3.8% | 4.6% | 5.1% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huabao International Holdings Ltd ($336) | 34.6% | 28.7% | 25.2% | 26.2% | 23.3% |
| Tiande Chemical Holdings Ltd ($609) | 24.4% | 26.2% | 29.4% | 20.7% | 20.6% |
| Century Sunshine Group Holdings Ltd ($509) | 3.5% | 11.3% | 15.9% | 16.4% | |
| Fufeng Group Ltd ($546) | 13.9% | 9.6% | 10.8% | 11.6% | 10.3% |
| Yingde Gases Group Co Ltd ($2168) | 14.7% | 10.6% | 11.5% | 11.5% | |
| |
|---|
| Median (31 companies) | 8.2% | 6.9% | 8.1% | 5.9% | 6.3% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 7.0% | 5.0% | 6.2% | 5.0% | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.4x | 2.2x | 4.6x | 18.1x | |
| China XLX Fertiliser Ltd ($1866) | 2.4x | 2.6x | 5.1x | 5.8x | 5.1x |
| Ngai Hing Hong Co Ltd ($1047) | 4.8x | 11.7x | 5.3x | 5.4x | 5.3x |
| Jilin Qifeng Chemical Fiber Co Ltd ($549) | 4.3x | 14.1x | 6.5x | 5.3x | |
| Sinofert Holdings Ltd ($297) | 4.3x | 2.9x | 32.4x | 5.0x | |
| |
|---|
| Median (24 companies) | 1.3x | 1.2x | 2.1x | 1.4x | 0.6x |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 2.5x | 2.8x | 2.9x | 3.1x | 3.3x |
