Kerry Logistics Network Ltd reports 14.7% CAPEX growth and almost no change in Revenue of 21,079
23/03/2016 • About Kerry Logistics Network Ltd (
$636) • By InTwits
Kerry Logistics Network Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kerry Logistics Network Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's in pair with industry average of 45.0%.
- CAPEX is quite volatile: 9,311 in 2015, 5,063 in 2014, 2,758 in 2013, 3,611 in 2012, 12,444 in 2011
- The company has business model with average profitability: ROIC is at 10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kerry Logistics Network Ltd ($636) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,034 | 19,295 | 19,969 | 21,115 | 21,079 | -0.2% |
| Gross Profit | 2,431 | 2,693 | 2,878 | 3,139 | 3,421 | 9.0% |
| SG&A | 1,276 | 1,336 | 1,406 | 1,521 | 1,664 | 9.4% |
| EBITDA | 1,564 | 1,923 | 2,819 | 2,767 | 3,014 | 8.9% |
| Net Income | 871 | 1,069 | 1,835 | 1,659 | 1,804 | 8.8% |
Balance Sheet
|
|---|
| Cash | 2,908 | 2,940 | 4,228 | 3,816 | 3,733 | -2.2% |
| Short Term Debt | 909 | 1,027 | 1,326 | 1,293 | 2,415 | 86.8% |
| Long Term Debt | 405 | 1,365 | 2,864 | 3,010 | 2,801 | -6.9% |
Cash flow
|
|---|
| Capex | 958 | 1,490 | 1,126 | 1,096 | 1,257 | 14.7% |
Ratios
|
|---|
| Revenue growth | 47.4% | 20.3% | 3.5% | 5.7% | -0.2% | |
| EBITDA growth | 31.4% | 22.9% | 46.7% | -1.9% | 8.9% | |
| Gross Margin | 15.2% | 14.0% | 14.4% | 14.9% | 16.2% | 1.4% |
| EBITDA Margin | 9.8% | 10.0% | 14.1% | 13.1% | 14.3% | 1.2% |
| Net Income Margin | 5.4% | 5.5% | 9.2% | 7.9% | 8.6% | 0.7% |
| SG&A, % of revenue | 8.0% | 6.9% | 7.0% | 7.2% | 7.9% | 0.7% |
| CAPEX, % of revenue | 6.0% | 7.7% | 5.6% | 5.2% | 6.0% | 0.8% |
| ROIC | 11.3% | 12.0% | 13.4% | 10.5% | 10.9% | 0.3% |
| ROE | 12.5% | 13.6% | 16.8% | 11.8% | 12.0% | 0.2% |
| Net Debt/EBITDA | -1.0x | -0.3x | -0.0x | 0.2x | 0.5x | 0.3x |
Revenue and profitability
The company's Revenue showed almost no change in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 13.1% to 14.3% in 2015.
Gross Margin increased slightly on 1.4 pp from 14.9% to 16.2% in 2015. SG&A as a % of Revenue increased slightly on 0.69 pp from 7.2% to 7.9% in 2015.
Net Income marign increased slightly on 0.70 pp from 7.9% to 8.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Kerry Logistics Network Ltd's CAPEX/Revenue was 6.0% in 2015. CAPEX/Revenue decreased slightly on 1.8 pp from 7.7% in 2012 to 6.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 5.6%.
Return on investment
The company operates at low ROIC (10.89%) and ROE (11.99%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 1.7x. Net Debt / EBITDA jumped on 0.3x from 0.2x to 0.5x in 2015. Debt surged on 21.2% in 2015 while cash decreased on 2.2% in 2015.
Appendix 1: Peers in Transportation
Below we provide Kerry Logistics Network 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) | | -4.2% | -5.9% | 60.4% | -12.0% |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | | 17.9% | 30.6% | 23.5% | 0.1% |
| |
|---|
| Median (29 companies) | 9.4% | 3.4% | 4.5% | 4.7% | -6.2% |
|---|
| Kerry Logistics Network Ltd ($636) | | 20.3% | 3.5% | 5.7% | -0.2% |
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% | 48.7% |
| 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% | 40.5% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| |
|---|
| Median (26 companies) | 19.7% | 12.7% | 10.6% | 10.2% | 11.6% |
|---|
| Kerry Logistics Network Ltd ($636) | 15.2% | 14.0% | 14.4% | 14.9% | 16.2% |
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% | 41.1% |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| 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 (30 companies) | 16.3% | 9.4% | 7.1% | 7.5% | 7.8% |
|---|
| Kerry Logistics Network Ltd ($636) | 9.8% | 10.0% | 14.1% | 13.1% | 14.3% |
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% | 9.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | 21.0% |
| |
|---|
| Median (30 companies) | 11.3% | 9.1% | 9.2% | 7.4% | 11.0% |
|---|
| Kerry Logistics Network Ltd ($636) | 6.0% | 7.7% | 5.6% | 5.2% | 6.0% |
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% | 11.1% |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | 10.6% |
| Qinhuangdao Port Co Ltd ($3369) | 9.3% | 9.8% | 9.6% | 9.3% | 7.0% |
| |
|---|
| Median (30 companies) | 5.0% | 3.2% | 2.8% | 3.1% | 3.6% |
|---|
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | 10.9% |
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 | 19.6x |
| 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 | -1.8x |
| 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) | 0.5x | 1.6x | 1.7x | 1.6x | 2.3x |
|---|
| Kerry Logistics Network Ltd ($636) | -1.0x | -0.3x | -0.0x | 0.2x | 0.5x |
