King Stone Energy Group Ltd Net Income surged on 217% in 2015 while EBITDA Margin dropped on 161 pp from -796% to -957%
31/03/2016 • About King Stone Energy Group Ltd (
$663) • By InTwits
King Stone Energy Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- King Stone Energy Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -75.1%
- The company operates at negative EBITDA Margin: -957.1%
- King Stone Energy Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -12.0%0
- King Stone Energy Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 110.3%. At the same time it's a lot of higher than industry average of 39.7%.
- CAPEX is quite volatile: 31.4 in 2015, 82.0 in 2014, 203 in 2013, 334 in 2012, 823 in 2011
- The company has unprofitable business model: ROIC is at -75.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
King Stone Energy Group Ltd ($663) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 995.1 | 571.1 | 150.3 | 39.8 | 45.4 | 13.9% |
| Gross Profit | 382.9 | -90.8 | -226.1 | -133.0 | -39.7 | -70.2% |
| SG&A | | 105.8 | 111.9 | 114.7 | 88.6 | -22.7% |
| EBITDA | 550.5 | 166.0 | -182.2 | -317.2 | -434.2 | 36.9% |
| Net Income | 55.3 | -1,655.3 | -1,373.7 | -1,723.5 | 2,020.1 | -217.2% |
Balance Sheet
|
|---|
| Cash | 51.9 | 15.9 | 292.6 | 156.1 | 202.9 | 30.0% |
| Short Term Debt | 599.1 | 1,013.5 | 1,156.1 | 1,581.1 | 0.0 | -100.0% |
| Long Term Debt | 900.2 | 625.1 | 542.9 | 33.0 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 823.2 | 334.3 | 203.3 | 82.0 | 31.4 | -61.7% |
Ratios
|
|---|
| Revenue growth | -1.3% | -42.6% | -73.7% | -73.5% | 13.9% | |
| EBITDA growth | -14.7% | -69.9% | -209.8% | 74.1% | 36.9% | |
| Gross Margin | 38.5% | -15.9% | -150.4% | -333.9% | -87.5% | 246.5% |
| EBITDA Margin | 55.3% | 29.1% | -121.2% | -796.1% | -957.1% | -161.0% |
| Net Income Margin | 5.6% | -289.8% | -913.9% | -4,326.3% | 4,453.5% | 8,779.8% |
| SG&A, % of revenue | | 18.5% | 74.5% | 287.8% | 195.3% | -92.5% |
| CAPEX, % of revenue | 82.7% | 58.5% | 135.3% | 205.7% | 69.3% | -136.5% |
| ROIC | 4.8% | -5.5% | -13.4% | -26.6% | -75.1% | -48.5% |
| ROE | 2.6% | -105.8% | -313.9% | | | 0.0% |
| Net Debt/EBITDA | 2.6x | 9.8x | | | | 0.0x |
Revenue and profitability
King Stone Energy Group Ltd's Revenue jumped on 13.9% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 161 pp from -796% to -957% in 2015.
Gross Margin surged on 246 pp from -334% to -87.5% in 2015. SG&A as a % of Revenue dropped on 92.5 pp from 288% to 195% in 2015.
Net Income marign jumped on 8,780 pp from -4,326% to 4,454% in 2015.
Capital expenditures (CAPEX) and working capital investments
King Stone Energy Group Ltd's CAPEX/Revenue was 69.3% in 2015. The company showed fast CAPEX/Revenue growth of 10.8 pp from 58.5% in 2012 to 69.3% in 2015. For the last three years the average CAPEX/Revenue was 137%.
Leverage (Debt)
The company paid down all the debt in 2015. Cash jumped on 30.0% in 2015.
Appendix 1: Peers in Coal
Below we provide King Stone Energy Group Ltd benchmarking against other companies in Coal 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 |
|---|
| Sino Resources Group Ltd ($223) | | -18.5% | -44.8% | 14.7% | 354.5% |
| Asia Coal Ltd ($835) | | 32.1% | -15.3% | 43.2% | 133.6% |
| Dowell Property Holdings Ltd ($668) | | -19.2% | -55.7% | -35.8% | 83.2% |
| Capital Finance Holdings Ltd ($8239) | | 83.6% | -5.2% | -5.5% | 70.6% |
| Up Energy Development Group Ltd ($307) | | | | | 60.5% |
| |
|---|
| Median (18 companies) | 8.5% | 1.4% | -6.8% | -8.2% | -19.5% |
|---|
| King Stone Energy Group Ltd ($663) | | -42.6% | -73.7% | -73.5% | 13.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Coal Ltd ($835) | 32.4% | 56.7% | 62.6% | 76.7% | 5.8% |
| Shougang Fushan Resources Group Ltd ($639) | 70.4% | 63.5% | 50.9% | 40.1% | 24.5% |
| Agritrade Resources Ltd ($1131) | 7.6% | 22.9% | 29.4% | 31.8% | 30.0% |
| Kinetic Mines and Energy Ltd ($1277) | | 20.6% | 28.8% | 30.3% | 10.9% |
| China Shenhua Energy Co Ltd ($1088) | 39.9% | 31.4% | 28.7% | 29.6% | 35.5% |
| |
|---|
| Median (22 companies) | 30.0% | 20.3% | 17.6% | 10.5% | 6.9% |
|---|
| King Stone Energy Group Ltd ($663) | 38.5% | -15.9% | -150.4% | -333.9% | -87.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 41.2% | 35.6% | 31.6% | 34.2% | 33.9% |
| Agritrade Resources Ltd ($1131) | 1.4% | 41.6% | 37.3% | 33.4% | 31.1% |
| Kinetic Mines and Energy Ltd ($1277) | | -277.0% | -51.9% | 29.3% | 15.8% |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 40.9% | 33.1% | 30.7% | 22.8% | 15.0% |
| Feishang Anthracite Resources Ltd ($1738) | -9.2% | -13.1% | -32.9% | 19.0% | 15.9% |
| |
|---|
| Median (23 companies) | 11.1% | -1.1% | 0.2% | -6.5% | -3.0% |
|---|
| King Stone Energy Group Ltd ($663) | 55.3% | 29.1% | -121.2% | -796.1% | -957.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Up Energy Development Group Ltd ($307) | | | | 279.5% | 75.2% |
| Siberian Mining Group Co Ltd ($1142) | 129.1% | 4.6% | 78.8% | 217.3% | 279.7% |
| Asia Coal Ltd ($835) | 121.4% | 12.5% | 25.8% | 111.0% | 0.3% |
| Hidili Industry International Development Ltd ($1393) | 74.1% | 82.3% | 144.6% | 92.3% | |
| Feishang Anthracite Resources Ltd ($1738) | 310.5% | 244.9% | 159.7% | 80.9% | 90.2% |
| |
|---|
| Median (23 companies) | 21.9% | 13.7% | 23.0% | 17.8% | 21.3% |
|---|
| King Stone Energy Group Ltd ($663) | 82.7% | 58.5% | 135.3% | 205.7% | 69.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Shenhua Energy Co Ltd ($1088) | 21.0% | 19.5% | 17.4% | 14.6% | 7.7% |
| Loudong General Nice Resources China Holdings Ltd ($988) | 11.5% | 4.1% | 8.2% | 9.6% | |
| Kinetic Mines and Energy Ltd ($1277) | -2.6% | -6.6% | -5.7% | 8.5% | 3.2% |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 37.6% | 28.5% | 15.2% | 8.5% | 2.0% |
| Agritrade Resources Ltd ($1131) | -2.3% | 2.7% | 5.8% | 6.4% | 6.9% |
| |
|---|
| Median (23 companies) | 0.6% | -1.3% | -0.4% | -1.8% | -0.9% |
|---|
| King Stone Energy Group Ltd ($663) | 4.8% | -5.5% | -13.4% | -26.6% | -75.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | | 24.3x | 32.6x |
| China Coal Energy Co Ltd ($1898) | 0.5x | 1.9x | 4.9x | 9.7x | 14.4x |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 0.4x | 0.4x | 1.7x | 3.5x | 9.8x |
| Yanzhou Coal Mining Co Ltd ($1171) | 1.1x | 2.9x | 6.2x | 4.9x | 9.0x |
| Kinetic Mines and Energy Ltd ($1277) | | | | 4.5x | 5.9x |
| |
|---|
| Median (9 companies) | 1.0x | 1.9x | 4.4x | 4.5x | 5.9x |
|---|
