Ka Shui International Holdings Ltd EBITDA dropped on 50.3% in 2015 and Revenue decreased on 2.7%
30/03/2016 • About Ka Shui International Holdings Ltd (
$822) • By InTwits
Ka Shui International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ka Shui International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.5%
- Ka Shui International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.9%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: 101 in 2015, 176 in 2014, 134 in 2013, 145 in 2012, 59.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.5%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ka Shui International Holdings Ltd ($822) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,192 | 1,569 | 1,807 | 1,582 | 1,539 | -2.7% |
| Gross Profit | 231 | 354 | 398 | 310 | 292 | -5.8% |
| SG&A | | 172 | 239 | 281 | 263 | -6.3% |
| EBITDA | 151 | 225 | 171 | 190 | 94 | -50.3% |
| Net Income | 63 | 126 | 61 | 77 | -63 | -182.2% |
Balance Sheet
|
|---|
| Cash | 165 | 135 | 280 | 237 | 261 | 9.9% |
| Short Term Debt | 264 | 330 | 498 | 522 | 423 | -19.0% |
| Long Term Debt | 5 | 1 | 0 | 28 | 181 | 546.6% |
Cash flow
|
|---|
| Capex | 60 | 145 | 134 | 176 | 101 | -42.9% |
Ratios
|
|---|
| Revenue growth | 30.5% | 31.7% | 15.1% | -12.4% | -2.7% | |
| EBITDA growth | 32.1% | 49.2% | -24.0% | 11.0% | -50.3% | |
| Gross Margin | 19.4% | 22.5% | 22.1% | 19.6% | 19.0% | -0.6% |
| EBITDA Margin | 12.6% | 14.3% | 9.5% | 12.0% | 6.1% | -5.9% |
| Net Income Margin | 5.3% | 8.0% | 3.4% | 4.9% | -4.1% | -9.0% |
| SG&A, % of revenue | | 11.0% | 13.2% | 17.7% | 17.1% | -0.7% |
| CAPEX, % of revenue | 5.0% | 9.3% | 7.4% | 11.1% | 6.5% | -4.6% |
| ROIC | 10.5% | 14.6% | 7.1% | 7.6% | 0.5% | -7.1% |
| ROE | 9.5% | 16.3% | 7.5% | 9.5% | -8.2% | -17.7% |
| Net Debt/EBITDA | 0.7x | 0.9x | 1.3x | 1.7x | 3.6x | 2.0x |
Revenue and profitability
Ka Shui International Holdings Ltd's Revenue decreased on 2.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 12.0% to 6.1% in 2015.
Gross Margin decreased slightly on 0.63 pp from 19.6% to 19.0% in 2015. SG&A as a % of Revenue decreased slightly on 0.66 pp from 17.7% to 17.1% in 2015.
Net Income marign decreased on 9.0 pp from 4.9% to -4.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.5%. Ka Shui International Holdings Ltd's CAPEX/Revenue decreased on 2.7 pp from 9.3% in 2012 to 6.5% in 2015. Average CAPEX/Revenue for the last three years was 8.4%.The company has spent a lot to CAPEX (107% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (0.51%) and negative ROE (-8.21%). ROIC decreased on 7.1 pp from 7.6% to 0.51% in 2015. ROE dropped on 17.7 pp from 9.5% to -8.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 6.4x. Net Debt / EBITDA surged on 2.0x from 1.7x to 3.6x in 2015. Debt increased on 9.7% in 2015 while cash increased on 9.9% in 2015.
Appendix 1: Peers in Metal Fabricate/Hardware
Below you can find Ka Shui International Holdings Ltd benchmarking vs. other companies in Metal Fabricate/Hardware 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 |
|---|
| Burwill Holdings Ltd ($24) | 25.4% | -35.5% | -9.2% | 39.2% | |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 100.8% | 16.3% | -48.4% | 32.2% | |
| EVA Precision Industrial Holdings Ltd ($838) | | 19.7% | 12.2% | 30.1% | 2.3% |
| China Zhongwang Holdings Ltd ($1333) | | 31.0% | 6.0% | 11.6% | 1.3% |
| Lung Kee Bermuda Holdings ($255) | | -5.2% | -7.5% | 8.2% | -5.2% |
| |
|---|
| Median (8 companies) | 63.1% | 2.8% | 8.0% | 9.9% | -4.0% |
|---|
| Ka Shui International Holdings Ltd ($822) | | 31.7% | 15.1% | -12.4% | -2.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 21.6% | 24.2% | 26.8% | 28.0% | 32.9% |
| EVA Precision Industrial Holdings Ltd ($838) | 24.7% | 21.6% | 24.1% | 26.2% | 26.5% |
| New Times Energy Corp Ltd ($166) | 1.0% | -2.7% | 0.8% | 22.6% | 4.6% |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 15.1% | 17.0% | 15.4% | 11.6% | |
| Shougang Concord Century Holdings Ltd ($103) | 9.3% | 1.0% | 11.5% | 7.5% | 1.3% |
| |
|---|
| Median (7 companies) | 9.3% | 3.7% | 11.5% | 11.6% | 4.6% |
|---|
| Ka Shui International Holdings Ltd ($822) | 19.4% | 22.5% | 22.1% | 19.6% | 19.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 22.0% | 22.3% | 24.3% | 24.2% | 29.1% |
| EVA Precision Industrial Holdings Ltd ($838) | 16.8% | 10.4% | 9.9% | 16.7% | 14.9% |
| Lung Kee Bermuda Holdings ($255) | 19.3% | 15.3% | 14.8% | 11.7% | 15.2% |
| Shougang Concord Century Holdings Ltd ($103) | 8.8% | -0.2% | 11.2% | 5.2% | -4.0% |
| Burwill Holdings Ltd ($24) | 0.6% | -0.8% | -0.6% | -0.4% | |
| |
|---|
| Median (8 companies) | 9.9% | 8.9% | 8.0% | 2.4% | 5.4% |
|---|
| Ka Shui International Holdings Ltd ($822) | 12.6% | 14.3% | 9.5% | 12.0% | 6.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | 25.1% | 56.3% | 41.6% | 54.8% | 63.1% |
| New Times Energy Corp Ltd ($166) | 9.0% | 11.4% | 1.7% | 52.1% | 61.1% |
| Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd ($1938) | 20.3% | 25.9% | 71.7% | 31.4% | |
| Lung Kee Bermuda Holdings ($255) | 21.9% | 11.6% | 9.6% | 11.0% | 4.5% |
| EVA Precision Industrial Holdings Ltd ($838) | 15.3% | 9.2% | 6.3% | 6.3% | 8.0% |
| |
|---|
| Median (8 companies) | 15.3% | 11.5% | 7.5% | 8.6% | 6.2% |
|---|
| Ka Shui International Holdings Ltd ($822) | 5.0% | 9.3% | 7.4% | 11.1% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EVA Precision Industrial Holdings Ltd ($838) | 10.5% | 3.3% | 1.9% | 9.1% | 6.4% |
| China Zhongwang Holdings Ltd ($1333) | 7.8% | 9.5% | 8.8% | 7.4% | 6.9% |
| Lung Kee Bermuda Holdings ($255) | 12.3% | 6.7% | 4.9% | 3.2% | 4.8% |
| Burwill Holdings Ltd ($24) | 0.8% | -1.8% | -1.5% | -1.6% | |
| Shougang Concord Century Holdings Ltd ($103) | 0.6% | -4.8% | 1.6% | -1.9% | -6.7% |
| |
|---|
| Median (8 companies) | 5.9% | 2.9% | 1.8% | -1.7% | 1.3% |
|---|
| Ka Shui International Holdings Ltd ($822) | 10.5% | 14.6% | 7.1% | 7.6% | 0.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Zhongwang Holdings Ltd ($1333) | -0.8x | 1.3x | 2.6x | 4.1x | 6.2x |
| EVA Precision Industrial Holdings Ltd ($838) | -0.4x | 1.1x | 1.8x | 1.2x | 0.7x |
| Lung Kee Bermuda Holdings ($255) | -0.7x | -1.5x | -1.6x | -0.9x | -1.4x |
| |
|---|
| Median (3 companies) | 1.9x | 1.3x | 4.4x | 2.7x | 0.7x |
|---|
| Ka Shui International Holdings Ltd ($822) | 0.7x | 0.9x | 1.3x | 1.7x | 3.6x |
