Kai Yuan Holdings Ltd revenue jumped on 272% in 2015 and EBITDA Margin surged on 168 pp from -118% to 50.2%
29/03/2016 • About Kai Yuan Holdings Ltd (
$1215) • By InTwits
Kai Yuan Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kai Yuan Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.8%
- Kai Yuan Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.6%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 18.0 in 2015, 53.1 in 2014, 53.4 in 2013, 25.4 in 2012, 55.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
- It operates with high leverage: Net Debt/EBITDA is 18.8x while industry average is -19.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kai Yuan Holdings Ltd ($1215) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 331.0 | 659.0 | 757.5 | 88.7 | 329.7 | 271.8% |
| Gross Profit | 4.1 | -1.3 | 71.7 | 27.6 | 110.4 | 300.4% |
| SG&A | | | | 212.7 | 55.7 | -73.8% |
| EBITDA | 5.3 | 0.8 | 70.5 | -104.8 | 165.4 | -257.9% |
| Net Income | -388.9 | -1,066.8 | -104.9 | 106.4 | -20.3 | -119.1% |
Balance Sheet
|
|---|
| Cash | 459.8 | 530.4 | 196.8 | 400.9 | 329.4 | -17.8% |
| Short Term Debt | 132.8 | 413.7 | 147.6 | 136.7 | 1,866.3 | 1,265.2% |
| Long Term Debt | 243.7 | 0.0 | 0.0 | 3,633.6 | 1,581.2 | -56.5% |
Cash flow
|
|---|
| Capex | 55.5 | 25.4 | 53.4 | 53.1 | 18.0 | -66.1% |
Ratios
|
|---|
| Revenue growth | 175.7% | 99.1% | 14.9% | -88.3% | 271.8% | |
| EBITDA growth | -105.4% | -84.8% | 8,582.8% | -248.6% | -257.9% | |
| Gross Margin | 1.2% | -0.2% | 9.5% | 31.1% | 33.5% | 2.4% |
| EBITDA Margin | 1.6% | 0.1% | 9.3% | -118.1% | 50.2% | 168.3% |
| Net Income Margin | -117.5% | -161.9% | -13.8% | 120.0% | -6.2% | -126.2% |
| SG&A, % of revenue | | | | 239.8% | 16.9% | -222.9% |
| CAPEX, % of revenue | 16.8% | 3.9% | 7.0% | 59.8% | 5.4% | -54.4% |
| ROIC | -1.2% | -1.6% | 0.3% | -3.4% | 0.8% | 4.2% |
| ROE | -11.0% | -35.1% | -4.0% | 3.9% | -0.8% | -4.7% |
| Net Debt/EBITDA | -15.6x | -143.8x | -0.7x | | 18.8x | 18.8x |
Revenue and profitability
The company's Revenue jumped on 272% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 13.9 pp from 31.9% to 45.8% in 2015.
Gross Margin increased on 2.4 pp from 31.1% to 33.5% in 2015. SG&A as a % of Revenue dropped on 223 pp from 240% to 16.9% in 2015.
Net Income marign dropped on 126 pp from 120% to -6.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Kai Yuan Holdings Ltd's CAPEX/Revenue was 5.4% in 2015. CAPEX/Revenue increased slightly on 1.6 pp from 3.9% in 2012 to 5.4% in 2015. It's average CAPEX/Revenue for the last three years was 24.1%.
Return on investment
The company operates at low but positive ROIC (0.85%) and negative ROE (-0.79%). ROIC increased on 4.2 pp from -3.4% to 0.85% in 2015. ROE decreased on 4.7 pp from 3.9% to -0.79% in 2015.
Leverage (Debt)
Debt level is 18.8x Net Debt / EBITDA and 20.8x Debt / EBITDA. Net Debt / EBITDA jumped18.8x from to 18.8x in 2015. Debt decreased on 8.6% in 2015 while cash dropped on 17.8% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Kai Yuan Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Celebrate International Holdings Ltd ($8212) | | -90.1% | 1,437.6% | -6.3% | 117.0% |
| Haier Healthwise Holdings Ltd ($348) | | -22.0% | -50.1% | -7.5% | 101.1% |
| CAR Inc ($699) | | 96.4% | 68.0% | 30.3% | 42.1% |
| Fu Shou Yuan International Group Ltd ($1448) | | 13.9% | 27.5% | 30.0% | 39.3% |
| |
|---|
| Median (53 companies) | 35.0% | 8.8% | 4.7% | 9.9% | 5.8% |
|---|
| Kai Yuan Holdings Ltd ($1215) | | 99.1% | 14.9% | -88.3% | 271.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| U Banquet Group Holding Ltd ($8107) | | | | 76.5% | 74.5% |
| Anxian Yuan China Holdings Ltd ($922) | 58.4% | 74.0% | 54.7% | 39.8% | 70.8% |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| |
|---|
| Median (48 companies) | 33.0% | 31.5% | 30.5% | 30.9% | 31.2% |
|---|
| Kai Yuan Holdings Ltd ($1215) | 1.2% | -0.2% | 9.5% | 31.1% | 33.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | | 61.6% | 84.9% | 75.9% | 80.9% |
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | 73.6% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| CAR Inc ($699) | 31.6% | 43.6% | 30.1% | 43.1% | 67.4% |
| Jiangsu Expressway Co Ltd ($177) | 60.8% | 57.0% | 60.7% | 59.3% | 61.5% |
| |
|---|
| Median (53 companies) | 16.8% | 16.9% | 14.2% | 11.1% | 13.1% |
|---|
| Kai Yuan Holdings Ltd ($1215) | 1.6% | 0.1% | 9.3% | -118.1% | 50.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 11.5% | 21.3% | 9.0% | 13.9% | 47.4% |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | 45.8% |
| Shenzhen International Holdings Ltd ($152) | 28.3% | 23.0% | 22.1% | 20.9% | 35.0% |
| Celebrate International Holdings Ltd ($8212) | 140.9% | 211.7% | 12.0% | 6.2% | 34.2% |
| China Maple Leaf Educational Systems Ltd ($1317) | 39.5% | 25.7% | 50.9% | 21.1% | 32.8% |
| |
|---|
| Median (53 companies) | 3.7% | 3.1% | 4.0% | 3.6% | 4.7% |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | 5.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | 19.8% |
| CAR Inc ($699) | | 5.2% | 2.7% | 12.2% | 19.0% |
| eprint Group Ltd ($1884) | | 33.0% | 34.8% | 15.4% | 18.5% |
| |
|---|
| Median (53 companies) | 5.2% | 6.2% | 5.7% | 5.5% | 3.7% |
|---|
| Kai Yuan Holdings Ltd ($1215) | -1.2% | -1.6% | 0.3% | -3.4% | 0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | | 22.2x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | 6.2x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | 4.1x |
| Speedy Global Holdings Ltd ($540) | -0.1x | -0.3x | -1.1x | -0.3x | 3.6x |
| |
|---|
| Median (35 companies) | -0.1x | -0.0x | -0.8x | -0.5x | -0.5x |
|---|
| Kai Yuan Holdings Ltd ($1215) | -15.6x | -143.8x | -0.7x | | 18.8x |
