Kader Holdings Co Ltd reports 326% EBITDA growth and 17.1 pp EBITDA Margin growth from 5.8% to 23.0%
30/03/2016 • About Kader Holdings Co Ltd (
$180) • By InTwits
Kader Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 23.0% in 2015 vs. 5.8% in 2014 vs. -6.7% in 2011
- EBITDA Margin is quite volatile: 23.0% in 2015, 5.8% in 2014, -3.0% in 2013, -4.2% in 2012, -6.7% in 2011
- Kader Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 22.8 in 2015, 23.5 in 2014, 34.7 in 2013, 43.4 in 2012, 51.8 in 2011
- The company has business model with low profitability: ROIC is at 7.9%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kader Holdings Co Ltd ($180) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,299 | 1,251 | 928 | 825 | 893 | 8.3% |
| EBITDA | -87 | -53 | -28 | 48 | 205 | 326.3% |
| Net Income | 49 | 165 | 51 | 146 | 124 | -14.7% |
Balance Sheet
|
|---|
| Cash | 111 | 114 | 76 | 94 | 59 | -37.0% |
| Short Term Debt | 463 | 434 | 516 | 506 | 329 | -34.9% |
| Long Term Debt | 29 | 16 | 25 | 51 | 37 | -26.4% |
Cash flow
|
|---|
| Capex | 52 | 43 | 35 | 23 | 23 | -2.6% |
Ratios
|
|---|
| Revenue growth | -18.8% | -3.7% | -25.8% | -11.1% | 8.3% | |
| EBITDA growth | -159.6% | -38.7% | -48.2% | -275.0% | 326.3% | |
| EBITDA Margin | -6.7% | -4.2% | -3.0% | 5.8% | 23.0% | 17.1% |
| Net Income Margin | 3.8% | 13.2% | 5.5% | 17.7% | 13.9% | -3.8% |
| CAPEX, % of revenue | 4.0% | 3.5% | 3.7% | 2.8% | 2.6% | -0.3% |
| ROIC | -8.5% | -5.7% | -3.9% | 0.6% | 7.9% | 7.3% |
| ROE | 4.6% | 13.6% | 3.9% | 9.9% | 7.5% | -2.4% |
| Net Debt/EBITDA | | | | 9.6x | 1.5x | -8.1x |
Revenue and profitability
Kader Holdings Co Ltd's Revenue increased on 8.3% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 17.1 pp from 5.8% to 23.0% in 2015.
Net Income marign decreased on 3.8 pp from 17.7% to 13.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.6%. CAPEX/Revenue decreased slightly on 0.91 pp from 3.5% in 2012 to 2.6% in 2015. It's average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low ROIC (7.90%) and ROE (7.52%). ROIC increased on 7.3 pp from 0.55% to 7.9% in 2015. ROE decreased on 2.4 pp from 9.9% to 7.5% in 2015.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 8.1x from 9.6x to 1.5x in 2015. Debt dropped on 34.1% in 2015 while cash dropped on 37.0% in 2015.
Appendix 1: Peers in Toys/Games/Hobbies
Below we provide Kader Holdings Co Ltd benchmarking against other companies in Toys/Games/Hobbies 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 |
|---|
| Leyou Technologies Holdings Ltd ($1089) | | 18.8% | 32.3% | 17.7% | 31.0% |
| Kin Yat Holdings Ltd ($638) | | -5.9% | 8.8% | 5.0% | 17.1% |
| Dream International Ltd ($1126) | | 24.9% | -0.1% | 21.0% | 10.8% |
| Matrix Holdings Ltd ($1005) | | -0.2% | 17.5% | 12.2% | 10.1% |
| Quali-Smart Holdings Ltd ($1348) | | 20.1% | -9.4% | -2.6% | 7.2% |
| |
|---|
| Median (7 companies) | 29.4% | 18.8% | 17.5% | 17.7% | 10.1% |
|---|
| Kader Holdings Co Ltd ($180) | | -3.7% | -25.8% | -11.1% | 8.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | 68.1% | 65.7% | 66.1% | 64.7% | 65.6% |
| Playmates Toys Ltd ($869) | 28.6% | 60.3% | 62.8% | 61.9% | 61.6% |
| Matrix Holdings Ltd ($1005) | 35.2% | 34.3% | 37.1% | 38.4% | 36.9% |
| Kiu Hung International Holdings Ltd ($381) | 20.8% | 30.9% | 29.0% | 32.1% | |
| Dream International Ltd ($1126) | 24.3% | 25.6% | 29.1% | 22.4% | 23.5% |
| |
|---|
| Median (9 companies) | 20.8% | 25.6% | 29.0% | 22.4% | 23.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | -14.7% | 22.0% | 36.7% | 33.5% | 32.8% |
| Playmates Toys Ltd ($869) | -186.4% | 15.1% | 33.0% | 30.2% | 25.8% |
| Matrix Holdings Ltd ($1005) | 11.0% | 10.2% | 13.2% | 15.0% | 17.4% |
| Dream International Ltd ($1126) | 10.3% | 13.2% | 14.8% | 9.8% | 12.9% |
| Kin Yat Holdings Ltd ($638) | 12.3% | 4.8% | 8.4% | 8.8% | 8.6% |
| |
|---|
| Median (7 companies) | 8.9% | 9.8% | 8.4% | 8.8% | 12.9% |
|---|
| Kader Holdings Co Ltd ($180) | -6.7% | -4.2% | -3.0% | 5.8% | 23.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | 44.9% | 11.5% | 4.5% | 2.0% | 15.4% |
| Dream International Ltd ($1126) | 2.6% | 2.9% | 3.8% | 11.2% | 7.3% |
| Kin Yat Holdings Ltd ($638) | 7.9% | 9.8% | 4.6% | 7.5% | 4.8% |
| Leyou Technologies Holdings Ltd ($1089) | 15.7% | 15.8% | 3.8% | 2.6% | 4.5% |
| Quali-Smart Holdings Ltd ($1348) | 1.7% | 1.5% | 2.2% | 12.7% | 3.0% |
| |
|---|
| Median (7 companies) | 5.8% | 4.7% | 3.2% | 2.8% | 4.5% |
|---|
| Kader Holdings Co Ltd ($180) | 4.0% | 3.5% | 3.7% | 2.8% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Toys Ltd ($869) | -48.9% | 30.7% | 121.1% | 73.0% | 36.6% |
| Matrix Holdings Ltd ($1005) | 5.8% | 5.9% | 13.1% | 18.6% | 21.2% |
| Dream International Ltd ($1126) | 12.4% | 19.3% | 19.4% | 13.3% | 19.4% |
| Playmates Holdings Ltd ($635) | -1.0% | 2.4% | 12.6% | 12.0% | 7.9% |
| Kin Yat Holdings Ltd ($638) | 11.4% | -0.7% | 4.5% | 4.9% | 6.2% |
| |
|---|
| Median (7 companies) | 8.6% | 5.9% | 12.6% | 9.1% | 7.9% |
|---|
| Kader Holdings Co Ltd ($180) | -8.5% | -5.7% | -3.9% | 0.6% | 7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 1.2x | 0.6x | -0.7x | 0.9x | 4.5x |
| Leyou Technologies Holdings Ltd ($1089) | -1.4x | 1.1x | 4.4x | 3.8x | 1.2x |
| Kin Yat Holdings Ltd ($638) | 0.0x | 1.6x | 0.3x | 0.4x | -0.0x |
| Matrix Holdings Ltd ($1005) | 0.5x | 0.6x | 0.0x | -0.2x | -0.6x |
| Dream International Ltd ($1126) | -1.4x | -1.5x | -1.5x | -1.3x | -1.1x |
| |
|---|
| Median (7 companies) | 0.2x | 0.6x | -0.4x | -0.2x | -0.6x |
|---|
| Kader Holdings Co Ltd ($180) | | | | 9.6x | 1.5x |
