Kith Holdings Ltd CAPEX surged on 329% in 2015 and Revenue increased on 4.8%
31/03/2016 • About Kith Holdings Ltd (
$1201) • By InTwits
Kith Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kith Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 106 in 2015, 24.7 in 2014, 35.6 in 2013, 28.2 in 2012, 24.9 in 2011
- The company has highly profitable business model: ROIC is at 12.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kith Holdings Ltd ($1201) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,941 | 762 | 737 | 759 | 795 | 4.8% |
| Gross Profit | 246 | 235 | 235 | 238 | 243 | 1.9% |
| SG&A | | 130 | 158 | 157 | 152 | -3.1% |
| EBITDA | 168 | 165 | 143 | 152 | 163 | 6.9% |
| Net Income | 35 | 55 | -676 | 65 | 28 | -56.7% |
Balance Sheet
|
|---|
| Cash | 82 | 57 | 57 | 54 | 204 | 280.5% |
| Short Term Debt | 562 | 548 | 517 | 495 | 89 | -82.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 25 | 28 | 36 | 25 | 106 | 328.6% |
Ratios
|
|---|
| Revenue growth | -3.6% | -60.8% | -3.2% | 2.9% | 4.8% | |
| EBITDA growth | -4.9% | -2.1% | -13.2% | 6.7% | 6.9% | |
| Gross Margin | 12.7% | 30.8% | 31.9% | 31.4% | 30.5% | -0.9% |
| EBITDA Margin | 8.7% | 21.6% | 19.4% | 20.1% | 20.5% | 0.4% |
| Net Income Margin | 1.8% | 7.3% | -91.7% | 8.6% | 3.6% | -5.0% |
| SG&A, % of revenue | | 17.1% | 21.5% | 20.6% | 19.1% | -1.6% |
| CAPEX, % of revenue | 1.3% | 3.7% | 4.8% | 3.3% | 13.3% | 10.1% |
| ROIC | 7.7% | 6.9% | 5.6% | 7.8% | 12.2% | 4.4% |
| ROE | 6.2% | 9.2% | | | 20.8% | 20.8% |
| Net Debt/EBITDA | 2.9x | 3.0x | 3.2x | 2.9x | -0.7x | -3.6x |
Revenue and profitability
The company's Revenue increased on 4.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.1 pp from 51.1% to 56.2% in 2015.
Gross Margin decreased slightly on 0.87 pp from 31.4% to 30.5% in 2015. SG&A as a % of Revenue decreased slightly on 1.6 pp from 20.6% to 19.1% in 2015.
Net Income marign decreased on 5.0 pp from 8.6% to 3.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Kith Holdings Ltd had CAPEX/Revenue of 13.3%. Kith Holdings Ltd showed CAPEX/Revenue growth of 9.6 pp from 3.7% in 2012 to 13.3% in 2015. For the last three years the average CAPEX/Revenue was 7.1%.Kith Holdings Ltd invested a large share of EBITDA (65.0%) to CAPEX.
Return on investment
The company operates at high and attractive ROE (20.76%) while ROIC is a bit lower (12.20%). ROIC increased on 4.4 pp from 7.8% to 12.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 3.6x from 2.9x to -0.7x in 2015. Debt dropped on 82.0% in 2015 while cash surged on 281% in 2015.
Appendix 1: Peers in Packaging&Containers
Below we provide Kith Holdings Ltd benchmarking against other companies in Packaging&Containers 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 |
|---|
| Overseas Chinese Town Asia Holdings Ltd ($3366) | | 34.9% | 17.5% | -6.5% | 69.5% |
| Hao Tian Development Group Ltd ($474) | | 14.8% | | | 51.0% |
| Jin Cai Holdings Co Ltd ($1250) | | 2.1% | -6.3% | -3.1% | 40.8% |
| Huaxi Holdings Co Ltd ($1689) | | 25.3% | 5.0% | -5.1% | 12.5% |
| Huajun Holdings Ltd ($377) | | 11.2% | 3.3% | 3.4% | 10.4% |
| |
|---|
| Median (19 companies) | | 4.9% | 5.3% | 0.7% | 2.9% |
|---|
| Kith Holdings Ltd ($1201) | | -60.8% | -3.2% | 2.9% | 4.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 39.6% | 36.6% | 39.1% | 37.7% | 44.7% |
| Huaxi Holdings Co Ltd ($1689) | 13.1% | 19.0% | 28.2% | 40.9% | 37.5% |
| China For You Group Co Ltd ($572) | 18.7% | 12.4% | | 34.6% | 31.9% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 30.2% | 34.3% | 36.5% | 32.8% | 31.4% |
| China Aluminum Cans Holdings Ltd ($6898) | 29.3% | 33.3% | 37.2% | 28.5% | 30.3% |
| |
|---|
| Median (18 companies) | 18.7% | 19.0% | 19.8% | 21.7% | 21.8% |
|---|
| Kith Holdings Ltd ($1201) | 12.7% | 30.8% | 31.9% | 31.4% | 30.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | 7.8% | 14.5% | 21.2% | 27.1% | 29.1% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 25.5% | 27.9% | 30.7% | 27.4% | 26.3% |
| Greatview Aseptic Packaging Co Ltd ($468) | 24.1% | 25.9% | 23.1% | 21.6% | 23.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 19.3% | 14.6% | 17.2% | 18.7% | 21.6% |
| Jin Cai Holdings Co Ltd ($1250) | 35.7% | 33.2% | 26.1% | 27.6% | 19.8% |
| |
|---|
| Median (19 companies) | 12.1% | 11.9% | 13.8% | 12.2% | 11.0% |
|---|
| Kith Holdings Ltd ($1201) | 8.7% | 21.6% | 19.4% | 20.1% | 20.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jin Cai Holdings Co Ltd ($1250) | 0.0% | 0.0% | 0.0% | 3.0% | 122.3% |
| Sheen Tai Holdings Grp Co Ltd ($1335) | 9.6% | 3.7% | 1.2% | 3.1% | 42.2% |
| Hao Tian Development Group Ltd ($474) | 88.2% | 81.6% | | 13.0% | 25.4% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 13.5% | 19.7% | 13.7% | 13.1% | 17.1% |
| CPMC Holdings Ltd ($906) | 13.7% | 16.7% | 19.7% | 8.6% | 9.2% |
| |
|---|
| Median (19 companies) | 5.6% | 6.9% | 4.6% | 4.1% | 5.5% |
|---|
| Kith Holdings Ltd ($1201) | 1.3% | 3.7% | 4.8% | 3.3% | 13.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huaxi Holdings Co Ltd ($1689) | | 21.4% | 28.5% | 26.2% | 23.6% |
| Greatview Aseptic Packaging Co Ltd ($468) | 19.6% | 20.2% | 18.9% | 15.7% | 17.7% |
| China Aluminum Cans Holdings Ltd ($6898) | 14.8% | 19.7% | 14.6% | 20.2% | 17.1% |
| Lee & Man Paper Manufacturing Ltd ($2314) | 11.3% | 7.2% | 8.7% | 8.0% | 9.2% |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 13.3% | 8.1% | 6.4% | 4.9% | 8.0% |
| |
|---|
| Median (19 companies) | 11.3% | 8.1% | 7.0% | 5.4% | 4.4% |
|---|
| Kith Holdings Ltd ($1201) | 7.7% | 6.9% | 5.6% | 7.8% | 12.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Haijing Holdings Ltd ($1106) | 4.7x | 6.4x | 6.1x | 6.2x | 10.1x |
| Huajun Holdings Ltd ($377) | -0.8x | 0.0x | 0.3x | 0.7x | 9.9x |
| Zhengye International Holdings Co Ltd ($3363) | 4.0x | 6.2x | 6.4x | 7.8x | 5.5x |
| Overseas Chinese Town Asia Holdings Ltd ($3366) | 0.7x | 9.4x | 6.7x | 7.4x | 4.4x |
| Jin Bao Bao Holdings Ltd ($1239) | -1.7x | -1.7x | -1.7x | -1.2x | 4.2x |
| |
|---|
| Median (16 companies) | 0.6x | 1.0x | 0.6x | 0.5x | 2.2x |
|---|
| Kith Holdings Ltd ($1201) | 2.9x | 3.0x | 3.2x | 2.9x | -0.7x |
