KEE Holdings Co Ltd reports 74.2% CAPEX decline and 3.8% Revenue decline
29/03/2016 • About KEE Holdings Co Ltd (
$2011) • By InTwits
KEE Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- KEE Holdings Co Ltd is a company in decline: 2015 revenue growth was -3.8%, 5 years revenue CAGR was -4.4%
- KEE Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.6%. At the same time it's a lot of higher than industry average of 7.8%.
- CAPEX is quite volatile: 10.6 in 2015, 41.2 in 2014, 70.3 in 2013, 34.3 in 2012, 39.8 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
KEE Holdings Co Ltd ($2011) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 190.4 | 157.4 | 160.8 | 165.4 | 159.0 | -3.8% |
| Gross Profit | 62.5 | 43.6 | 48.9 | 49.8 | 48.1 | -3.5% |
| SG&A | 44.2 | 42.0 | 45.5 | 45.6 | 46.0 | 0.8% |
| EBITDA | 34.2 | 15.4 | 18.9 | 21.3 | 21.7 | 1.9% |
| Net Income | 20.4 | 1.1 | 3.1 | 3.7 | 4.2 | 13.7% |
Balance Sheet
|
|---|
| Cash | 76.9 | 79.4 | 81.7 | 38.0 | 85.9 | 126.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 17.0 | 15.0 | -11.8% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 39.8 | 34.3 | 70.3 | 41.2 | 10.6 | -74.2% |
Ratios
|
|---|
| Revenue growth | -4.4% | -17.4% | 2.2% | 2.8% | -3.8% | |
| EBITDA growth | -31.0% | -55.0% | 22.8% | 12.5% | 1.9% | |
| Gross Margin | 32.8% | 27.7% | 30.4% | 30.1% | 30.2% | 0.1% |
| EBITDA Margin | 18.0% | 9.8% | 11.8% | 12.9% | 13.7% | 0.8% |
| Net Income Margin | 10.7% | 0.7% | 1.9% | 2.2% | 2.6% | 0.4% |
| SG&A, % of revenue | 23.2% | 26.7% | 28.3% | 27.6% | 28.9% | 1.3% |
| CAPEX, % of revenue | 20.9% | 21.8% | 43.7% | 24.9% | 6.7% | -18.2% |
| ROIC | 9.2% | 0.5% | 1.1% | 1.4% | 1.1% | -0.4% |
| ROE | 9.2% | 0.3% | 1.0% | 1.2% | 1.4% | 0.2% |
| Net Debt/EBITDA | -2.2x | -5.1x | -4.3x | -1.0x | -3.3x | -2.3x |
Revenue and profitability
The company's Revenue decreased on 3.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.77 pp from 12.9% to 13.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 1.3 pp from 27.6% to 28.9% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.7% in 2015. The company's CAPEX/Revenue dropped on 15.1 pp from 21.8% in 2012 to 6.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 25.1%.
Return on investment
The company operates at low ROIC (1.06%) and ROE (1.39%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.3x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 2.3x from -1.0x to -3.3x in 2015. Debt dropped on 11.8% in 2015 while cash jumped on 126% in 2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below you can find KEE Holdings Co Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 |
|---|
| Karrie International Hldgs ($1050) | | -11.6% | 0.1% | -11.3% | 27.4% |
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
| TK Group Holdings Ltd ($2283) | | 40.2% | 9.3% | 11.8% | 20.0% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | | 1.5% | 22.2% | 43.2% | 11.7% |
| Time Watch Investments Ltd ($2033) | | 28.2% | 25.4% | 25.6% | 10.4% |
| |
|---|
| Median (22 companies) | 18.6% | -1.8% | -0.7% | 8.2% | -6.9% |
|---|
| KEE Holdings Co Ltd ($2011) | | -17.4% | 2.2% | 2.8% | -3.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| China Environmental Energy Investment Ltd ($986) | 21.0% | 14.0% | 1.2% | 9.0% | 49.2% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | 38.7% |
| |
|---|
| Median (21 companies) | 20.6% | 19.7% | 19.7% | 23.4% | 21.7% |
|---|
| KEE Holdings Co Ltd ($2011) | 32.8% | 27.7% | 30.4% | 30.1% | 30.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | 37.6% |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | 29.1% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | 24.2% |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (22 companies) | 10.2% | 8.0% | 8.2% | 9.5% | 7.0% |
|---|
| KEE Holdings Co Ltd ($2011) | 18.0% | 9.8% | 11.8% | 12.9% | 13.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | 21.2% |
| IPE Group Ltd ($929) | 7.1% | 6.3% | 13.3% | 12.3% | 13.3% |
| China Aerospace International Holdings Ltd ($31) | 3.9% | 5.1% | 6.3% | 6.6% | 7.9% |
| |
|---|
| Median (22 companies) | 5.0% | 4.7% | 4.2% | 4.2% | 4.3% |
|---|
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | 6.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | 27.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | 21.1% |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | 11.7% |
| |
|---|
| Median (22 companies) | 6.4% | 4.4% | 4.4% | 4.4% | 1.9% |
|---|
| KEE Holdings Co Ltd ($2011) | 9.2% | 0.5% | 1.1% | 1.4% | 1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | 27.3x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | 9.8x |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| Lee & Man Chemical Co Ltd ($746) | -0.3x | -0.2x | 1.5x | 2.2x | 2.5x |
| |
|---|
| Median (19 companies) | 0.1x | -0.2x | -0.2x | 0.1x | -0.3x |
|---|
| KEE Holdings Co Ltd ($2011) | -2.2x | -5.1x | -4.3x | -1.0x | -3.3x |
