Chu Kong Shipping Enterprise Group Co Ltd reports 5.1% revenue growth in 2015 and 0.51 pp EBITDA Margin decline from 17.0% to 16.5%
29/03/2016 • About Chu Kong Shipping Enterprise Group Co Ltd (
$560) • By InTwits
Chu Kong Shipping Enterprise Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chu Kong Shipping Enterprise Group Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.1%. At the same time it's a lot of higher than industry average of 11.4%.
- CAPEX is quite volatile: 77.0 in 2015, 351 in 2014, 220 in 2013, 109 in 2012, 156 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chu Kong Shipping Enterprise Group Co Ltd ($560) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,384 | 1,515 | 1,619 | 1,829 | 1,922 | 5.1% |
| Gross Profit | 298 | 350 | 406 | 440 | 444 | 0.9% |
| SG&A | | 251 | 282 | 288 | 305 | 5.9% |
| EBITDA | 163 | 210 | 249 | 311 | 317 | 2.0% |
| Net Income | 147 | 136 | 191 | 221 | 232 | 5.0% |
Balance Sheet
|
|---|
| Cash | 331 | 585 | 601 | 533 | 859 | 61.1% |
| Short Term Debt | 255 | 269 | 308 | 307 | 210 | -31.5% |
| Long Term Debt | 74 | 162 | 181 | 136 | 52 | -62.0% |
Cash flow
|
|---|
| Capex | 156 | 109 | 220 | 351 | 77 | -78.1% |
Ratios
|
|---|
| Revenue growth | 18.0% | 9.4% | 6.9% | 12.9% | 5.1% | |
| EBITDA growth | -4.7% | 28.6% | 18.9% | 24.8% | 2.0% | |
| Gross Margin | 21.5% | 23.1% | 25.1% | 24.1% | 23.1% | -1.0% |
| EBITDA Margin | 11.8% | 13.8% | 15.4% | 17.0% | 16.5% | -0.5% |
| Net Income Margin | 10.6% | 9.0% | 11.8% | 12.1% | 12.1% | -0.0% |
| SG&A, % of revenue | | 16.6% | 17.4% | 15.7% | 15.9% | 0.1% |
| CAPEX, % of revenue | 11.3% | 7.2% | 13.6% | 19.2% | 4.0% | -15.2% |
| ROIC | 3.9% | 5.2% | 5.8% | 7.2% | 6.7% | -0.5% |
| ROE | 8.1% | 7.3% | 9.5% | 10.2% | 9.4% | -0.8% |
| Net Debt/EBITDA | -0.0x | -0.7x | -0.5x | -0.3x | -1.9x | -1.6x |
Revenue and profitability
The company's Revenue increased on 5.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.0 pp from 29.1% to 26.1% in 2015.
Gross Margin decreased slightly on 0.97 pp from 24.1% to 23.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Chu Kong Shipping Enterprise Group Co Ltd had CAPEX/Revenue of 4.0%. Chu Kong Shipping Enterprise Group Co Ltd's CAPEX/Revenue decreased on 3.2 pp from 7.2% in 2012 to 4.0% in 2015. It's average CAPEX/Revenue for the last three years was 12.3%.
Return on investment
The company operates at low ROIC (6.68%) and ROE (9.40%). ROIC showed almost no change in 2015. ROE decreased slightly on 0.83 pp from 10.2% to 9.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.9x and Debt / EBITDA is 0.8x. Net Debt / EBITDA dropped on 1.6x from -0.3x to -1.9x in 2015. Debt dropped on 40.9% in 2015 while cash jumped on 61.1% in 2015.
Appendix 1: Peers in Transportation
Below you can find Chu Kong Shipping Enterprise Group Co Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | | 2,388.3% |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | | 10.9% | 27.9% | 15.0% | 13.3% |
| Kwoon Chung Bus Holdings Ltd ($306) | | -8.6% | 7.9% | 5.5% | 7.9% |
| Guangshen Railway Co Ltd ($525) | | 2.7% | 4.7% | -6.9% | 6.9% |
| MTR Corp Ltd ($66) | | 6.9% | 8.3% | 3.7% | 3.8% |
| |
|---|
| Median (25 companies) | -12.3% | 3.4% | 3.5% | 4.7% | -4.6% |
|---|
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | | 9.4% | 6.9% | 12.9% | 5.1% |
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% |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | 40.5% |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| Tianjin Port Development Holdings Ltd ($3382) | 21.7% | 22.5% | 18.4% | 13.6% | 22.7% |
| China Shipping Development Co Ltd ($1138) | 12.5% | -1.8% | -1.6% | 11.3% | 19.2% |
| |
|---|
| Median (21 companies) | 17.6% | 12.7% | 10.6% | 10.2% | 12.6% |
|---|
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | 23.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | 41.6% |
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | 41.1% |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | 39.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | 26.7% |
| Kwoon Chung Bus Holdings Ltd ($306) | 15.4% | 13.3% | 16.1% | 20.7% | 26.1% |
| |
|---|
| Median (25 companies) | 16.3% | 9.4% | 7.1% | 7.5% | 10.0% |
|---|
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 11.8% | 13.8% | 15.4% | 17.0% | 16.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 150.5% | 4.0% | 6.1% | 40.7% | 164.7% |
| MTR Corp Ltd ($66) | 30.0% | 31.1% | 34.5% | 30.8% | 52.0% |
| CIG Yangtze Ports PLC ($8233) | 31.4% | 17.8% | 24.8% | 2.1% | 50.7% |
| Transport International Holdings Ltd ($62) | 10.9% | 7.9% | 16.2% | 16.0% | 26.2% |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | 21.0% |
| |
|---|
| Median (25 companies) | 10.9% | 9.1% | 8.7% | 7.1% | 9.2% |
|---|
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 11.3% | 7.2% | 13.6% | 19.2% | 4.0% |
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% | 19.3% |
| Kwoon Chung Bus Holdings Ltd ($306) | 6.9% | 3.6% | 5.7% | 9.2% | 14.6% |
| SITC International Holdings Co Ltd ($1308) | 9.0% | 8.2% | 9.1% | 9.1% | 11.2% |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | 11.1% |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | 10.9% |
| |
|---|
| Median (25 companies) | 5.3% | 3.2% | 2.8% | 3.1% | 5.0% |
|---|
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 3.9% | 5.2% | 5.8% | 7.2% | 6.7% |
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 | 11.4x |
| Pacific Basin Shipping Ltd ($2343) | 0.8x | 2.1x | 4.6x | | 4.7x |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| Orient Overseas International Ltd ($316) | 2.0x | 2.7x | 5.1x | 3.4x | 3.9x |
| |
|---|
| Median (18 companies) | 0.5x | 1.6x | 1.7x | 1.6x | 1.3x |
|---|
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | -0.0x | -0.7x | -0.5x | -0.3x | -1.9x |
