Kingboard Laminates Holdings Ltd EBITDA surged on 12.8% in 2015 and EBITDA Margin increased on 2.6 pp from 15.0% to 17.6%
21/03/2016 • About Kingboard Laminates Holdings Ltd (
$1888) • By InTwits
Kingboard Laminates Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kingboard Laminates Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 6.3%.
- CAPEX is quite volatile: 446 in 2015, 730 in 2014, 634 in 2013, 1,061 in 2012, 429 in 2011
- The company has business model with low profitability: ROIC is at 7.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kingboard Laminates Holdings Ltd ($1888) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,205 | 12,483 | 12,798 | 13,283 | 12,770 | -3.9% |
| Gross Profit | 2,243 | 1,921 | 1,990 | 2,002 | 2,171 | 8.4% |
| SG&A | 690 | 696 | 716 | 752 | 821 | 9.1% |
| EBITDA | 2,327 | 1,929 | 1,995 | 1,992 | 2,248 | 12.8% |
| Net Income | 1,325 | 1,164 | 1,207 | 1,122 | 1,265 | 12.8% |
Balance Sheet
|
|---|
| Cash | 2,603 | 2,328 | 2,428 | 2,448 | 2,840 | 16.0% |
| Short Term Debt | 665 | 1,311 | 1,593 | 2,802 | 1,181 | -57.8% |
| Long Term Debt | 3,479 | 3,042 | 3,791 | 2,232 | 3,714 | 66.4% |
Cash flow
|
|---|
| Capex | 429 | 1,061 | 634 | 730 | 446 | -38.9% |
Ratios
|
|---|
| Revenue growth | 1.1% | -5.5% | 2.5% | 3.8% | -3.9% | |
| EBITDA growth | -31.8% | -17.1% | 3.4% | -0.2% | 12.8% | |
| Gross Margin | 17.0% | 15.4% | 15.5% | 15.1% | 17.0% | 1.9% |
| EBITDA Margin | 17.6% | 15.5% | 15.6% | 15.0% | 17.6% | 2.6% |
| Net Income Margin | 10.0% | 9.3% | 9.4% | 8.4% | 9.9% | 1.5% |
| SG&A, % of revenue | 5.2% | 5.6% | 5.6% | 5.7% | 6.4% | 0.8% |
| CAPEX, % of revenue | 3.2% | 8.5% | 5.0% | 5.5% | 3.5% | -2.0% |
| ROIC | 9.9% | 7.1% | 6.8% | 6.3% | 7.7% | 1.4% |
| ROE | 12.9% | 10.3% | 9.8% | 8.6% | 9.6% | 1.0% |
| Net Debt/EBITDA | 0.7x | 1.0x | 1.5x | 1.3x | 0.9x | -0.4x |
Revenue and profitability
The company's Revenue decreased on 3.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.6 pp from 15.0% to 17.6% in 2015.
Gross Margin increased slightly on 1.9 pp from 15.1% to 17.0% in 2015. SG&A as a % of Revenue increased slightly on 0.77 pp from 5.7% to 6.4% in 2015.
Net Income marign increased slightly on 1.5 pp from 8.4% to 9.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Kingboard Laminates Holdings Ltd's CAPEX/Revenue was 3.5% in 2015. The company showed decline in CAPEX/Revenue of 5.0 pp from 8.5% in 2012 to 3.5% in 2015. For the last three years the average CAPEX/Revenue was 4.6%.
Return on investment
The company operates at low ROIC (7.67%) and ROE (9.56%). ROIC increased slightly on 1.4 pp from 6.3% to 7.7% in 2015. ROE increased slightly on 1.0 pp from 8.6% to 9.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 0.4x from 1.3x to 0.9x in 2015. Debt decreased on 2.8% in 2015 while cash jumped on 16.0% in 2015.
Appendix 1: Peers in Electronics
Below we provide Kingboard Laminates Holdings Ltd benchmarking against other companies in Electronics 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 |
|---|
| China Netcom Technology Holdings Ltd ($8071) | -22.0% | 11.6% | -23.0% | 104.1% | |
| Technovator International Ltd ($1206) | 31.6% | 27.4% | 34.1% | 35.9% | |
| Tongda Group Holdings Ltd ($698) | | 8.3% | 6.4% | 32.1% | 26.8% |
| Advanced Card Systems Holdings Ltd ($8210) | 25.3% | 36.9% | 20.8% | 26.7% | |
| Alltronics Holdings Ltd ($833) | 33.9% | -1.6% | -1.6% | 23.4% | |
| |
|---|
| Median (49 companies) | 7.3% | -0.3% | 4.0% | 6.2% | -0.2% |
|---|
| Kingboard Laminates Holdings Ltd ($1888) | | -5.5% | 2.5% | 3.8% | -3.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% |
| Wasion Group Holdings Ltd ($3393) | 30.3% | 32.8% | 35.1% | 34.2% | 30.2% |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | 34.6% |
| |
|---|
| Median (47 companies) | 13.5% | 13.6% | 13.7% | 13.8% | 16.6% |
|---|
| Kingboard Laminates Holdings Ltd ($1888) | 17.0% | 15.4% | 15.5% | 15.1% | 17.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.2% | 35.8% | 35.8% | 34.9% | |
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | 19.3% |
| Technovator International Ltd ($1206) | 19.2% | 19.0% | 19.0% | 20.8% | |
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | 16.2% |
| |
|---|
| Median (49 companies) | 8.8% | 5.7% | 4.4% | 4.0% | 5.5% |
|---|
| Kingboard Laminates Holdings Ltd ($1888) | 17.6% | 15.5% | 15.6% | 15.0% | 17.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AKM Industrial Co Ltd ($1639) | 7.4% | 5.0% | 17.4% | 25.2% | |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | 25.8% |
| Tech Pro Technology Development Ltd ($3823) | 32.8% | 7.6% | 13.1% | 15.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | |
| |
|---|
| Median (49 companies) | 3.4% | 3.7% | 2.9% | 3.3% | 3.5% |
|---|
| Kingboard Laminates Holdings Ltd ($1888) | 3.2% | 8.5% | 5.0% | 5.5% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | |
| Cowell e Holdings Inc ($1415) | | 12.5% | 27.1% | 24.4% | 25.8% |
| Advanced Card Systems Holdings Ltd ($8210) | 15.5% | 26.7% | 24.7% | 20.2% | |
| Alltronics Holdings Ltd ($833) | 19.3% | 13.1% | 15.2% | 19.8% | |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | 16.3% |
| |
|---|
| Median (49 companies) | 5.4% | 4.1% | 3.5% | 2.9% | 2.4% |
|---|
| Kingboard Laminates Holdings Ltd ($1888) | 9.9% | 7.1% | 6.8% | 6.3% | 7.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Electronic Hldgs ($213) | 43.0x | 16.3x | 30.2x | 84.8x | 19.9x |
| Sino-Tech International Holdings Ltd ($724) | | | 15.7x | 24.7x | |
| Eyang Holdings Group Co Ltd ($117) | 4.2x | 3.3x | 3.7x | 17.9x | |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| |
|---|
| Median (35 companies) | 0.8x | 1.1x | 1.1x | 0.8x | 0.1x |
|---|
| Kingboard Laminates Holdings Ltd ($1888) | 0.7x | 1.0x | 1.5x | 1.3x | 0.9x |
