Kasen International Holdings Ltd Net Income jumped on 488% in 2015 and EBITDA Margin increased slightly on 1.2 pp from 1.7% to 2.9%
31/03/2016 • About Kasen International Holdings Ltd (
$496) • By InTwits
Kasen International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kasen International Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.2%
- EBITDA Margin is quite volatile: 2.9% in 2015, 1.7% in 2014, 12.1% in 2013, 14.0% in 2012, 5.6% in 2011
- Kasen International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 128 in 2015, 151 in 2014, 87.8 in 2013, 155 in 2012, 57.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
- It operates with high leverage: Net Debt/EBITDA is 20.1x while industry average is -1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kasen International Holdings Ltd ($496) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,241 | 3,095 | 3,439 | 3,230 | 3,238 | 0.2% |
| Gross Profit | 344 | 637 | 677 | 377 | 467 | 23.7% |
| SG&A | | 269 | 332 | 376 | 444 | 18.2% |
| EBITDA | 125 | 433 | 416 | 56 | 94 | 67.5% |
| Net Income | 300 | 203 | 173 | 32 | 190 | 487.5% |
Balance Sheet
|
|---|
| Cash | 370 | 561 | 560 | 324 | 216 | -33.5% |
| Short Term Debt | 1,570 | 1,501 | 1,626 | 2,168 | 1,789 | -17.5% |
| Long Term Debt | 7 | 6 | 458 | 680 | 317 | -53.4% |
Cash flow
|
|---|
| Capex | 57 | 155 | 88 | 151 | 128 | -15.3% |
Ratios
|
|---|
| Revenue growth | -3.3% | 38.1% | 11.1% | -6.1% | 0.2% | |
| EBITDA growth | -22.0% | 246.0% | -4.0% | -86.5% | 67.5% | |
| Gross Margin | 15.4% | 20.6% | 19.7% | 11.7% | 14.4% | 2.7% |
| EBITDA Margin | 5.6% | 14.0% | 12.1% | 1.7% | 2.9% | 1.2% |
| Net Income Margin | 13.4% | 6.6% | 5.0% | 1.0% | 5.9% | 4.9% |
| SG&A, % of revenue | | 8.7% | 9.7% | 11.6% | 13.7% | 2.1% |
| CAPEX, % of revenue | 2.6% | 5.0% | 2.6% | 4.7% | 3.9% | -0.7% |
| ROIC | 1.8% | 8.3% | 6.5% | -0.2% | 0.2% | 0.4% |
| ROE | 12.5% | 7.6% | 5.7% | 1.0% | 6.2% | 5.2% |
| Net Debt/EBITDA | 9.6x | 2.2x | 3.7x | 44.9x | 20.1x | -24.8x |
Revenue and profitability
Kasen International Holdings Ltd's Revenue showed almost no change in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 1.7% to 2.9% in 2015.
Gross Margin increased on 2.7 pp from 11.7% to 14.4% in 2015. SG&A as a % of Revenue increased on 2.1 pp from 11.6% to 13.7% in 2015.
Net Income marign increased on 4.9 pp from 1.0% to 5.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Kasen International Holdings Ltd had CAPEX/Revenue of 3.9%. The company showed small CAPEX/Revenue decline of 1.1 pp from 5.0% in 2012 to 3.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.7%.Kasen International Holdings Ltd maintained rich investment policy and has spent a lot to CAPEX (135% of EBITDA).
Return on investment
The company operates at low ROIC (0.23%) and ROE (6.21%). ROIC showed almost no change in 2015. ROE increased on 5.2 pp from 1.0% to 6.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 20.1x and Debt / EBITDA is 22.4x. Net Debt / EBITDA dropped on 24.8x from 44.9x to 20.1x in 2015. Debt dropped on 26.0% in 2015 while cash dropped on 33.5% in 2015.
Appendix 1: Peers in Home Furnishings
Below you can find Kasen International Holdings Ltd benchmarking vs. other companies in Home Furnishings 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 |
|---|
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| Sunrise China Technology Group Ltd ($8226) | | -93.0% | 21.9% | -20.4% | 77.5% |
| Yuxing InfoTech Investment Holdings Ltd ($8005) | | 29.6% | -21.2% | -16.5% | 21.3% |
| Aupu Group Holding Co Ltd ($477) | | 5.7% | 9.0% | 26.4% | 18.5% |
| |
|---|
| Median (25 companies) | -15.9% | -0.2% | 5.4% | 3.0% | -0.8% |
|---|
| Kasen International Holdings Ltd ($496) | | 38.1% | 11.1% | -6.1% | 0.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | 48.7% |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | 27.3% |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| Hing Lee HK Holdings Ltd ($396) | 23.1% | 16.3% | 18.7% | 22.7% | 22.9% |
| |
|---|
| Median (25 companies) | 16.5% | 17.3% | 16.8% | 16.7% | 15.9% |
|---|
| Kasen International Holdings Ltd ($496) | 15.4% | 20.6% | 19.7% | 11.7% | 14.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | 27.0% |
| Skyworth Digital Holdings Ltd ($751) | 7.0% | 6.0% | 6.1% | 5.7% | 11.3% |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | 8.6% |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | 8.2% |
| Raymond Industrial Ltd ($229) | 4.5% | 7.6% | 7.7% | 7.8% | 6.3% |
| |
|---|
| Median (25 companies) | 6.0% | 4.9% | 4.5% | 4.6% | 4.0% |
|---|
| Kasen International Holdings Ltd ($496) | 5.6% | 14.0% | 12.1% | 1.7% | 2.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| JF Household Furnishings Ltd ($776) | 4.7% | 0.7% | 4.5% | 2.8% | 54.5% |
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | 14.1% |
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | 10.5% |
| South East Group Ltd ($726) | 0.0% | 0.0% | 0.0% | 0.0% | 7.9% |
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | 5.7% |
| |
|---|
| Median (25 companies) | 1.8% | 1.5% | 1.9% | 2.7% | 2.2% |
|---|
| Kasen International Holdings Ltd ($496) | 2.6% | 5.0% | 2.6% | 4.7% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | 32.2% |
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | 23.2% |
| Skyworth Digital Holdings Ltd ($751) | 11.7% | 11.6% | 13.4% | 10.9% | 23.0% |
| BEP International Holdings Ltd ($2326) | 218.9% | 90.3% | 4.7% | -4.5% | 17.6% |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
| |
|---|
| Median (25 companies) | 7.0% | 3.7% | 4.4% | 4.0% | 4.1% |
|---|
| Kasen International Holdings Ltd ($496) | 1.8% | 8.3% | 6.5% | -0.2% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | 6.4x |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.0x | -0.3x | -2.3x | 0.7x | 0.5x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| Aupu Group Holding Co Ltd ($477) | 0.5x | -0.2x | 0.7x | 0.6x | -0.2x |
| |
|---|
| Median (16 companies) | 0.0x | -0.3x | -1.1x | -1.9x | -1.3x |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | 20.1x |
