Karrie International Hldgs EBITDA surged on 71.6% and Revenue jumped on 11.8%
27/06/2016 • About Karrie International Hldgs (
$1050) • By InTwits
Karrie International Hldgs reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.0% in FY2016, 5.9% in FY2015, 6.6% in FY2014, 5.0% in FY2013, 2.7% in FY2012
- Karrie International Hldgs 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 38.3%.
- CAPEX is quite volatile: 3.8 in FY2016, 33.2 in FY2015, 80.7 in FY2014, 76.5 in FY2013, 38.8 in FY2012
- The company has business model with average profitability: ROIC is at 12.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Karrie International Hldgs ($1050) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,290 | 2,291 | 2,033 | 2,591 | 2,898 | 11.8% |
| Gross Profit | 189 | 242 | 291 | 284 | 352 | 23.7% |
| SG&A | 140 | 151 | 171 | 165 | 188 | 13.6% |
| EBITDA | 61 | 114 | 134 | 153 | 262 | 71.6% |
| Net Income | 25 | 39 | 34 | 76 | 117 | 53.4% |
Balance Sheet
|
|---|
| Cash | 411 | 244 | 196 | 224 | 277 | 23.2% |
| Short Term Debt | 423 | 271 | 149 | 359 | 338 | -5.7% |
| Long Term Debt | 0 | 0 | 15 | 7 | 60 | 780.2% |
Cash flow
|
|---|
| Capex | 112 | 107 | 106 | 192 | 121 | -36.9% |
Ratios
|
|---|
| Revenue growth | -11.6% | 0.1% | -11.3% | 27.4% | 11.8% | |
| EBITDA growth | -13.8% | 87.2% | 17.4% | 14.2% | 71.6% | |
| Gross Margin | 8.2% | 10.6% | 14.3% | 11.0% | 12.1% | 1.2% |
| EBITDA Margin | 2.7% | 5.0% | 6.6% | 5.9% | 9.0% | 3.2% |
| Net Income Margin | 1.1% | 1.7% | 1.7% | 2.9% | 4.0% | 1.1% |
| SG&A, % of revenue | 6.1% | 6.6% | 8.4% | 6.4% | 6.5% | 0.1% |
| CAPEX, % of revenue | 4.9% | 4.7% | 5.2% | 7.4% | 4.2% | -3.2% |
| ROIC | 1.1% | 4.4% | 7.0% | 5.5% | 12.0% | 6.5% |
| ROE | 2.9% | 4.3% | 3.7% | 7.9% | 11.7% | 3.8% |
| Net Debt/EBITDA | 0.2x | 0.2x | -0.2x | 0.9x | 0.5x | -0.5x |
Revenue and profitability
The company's Revenue jumped on 11.8%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.2 pp from 5.9% to 9.0% in FY2016.
Gross Margin increased slightly on 1.2 pp from 11.0% to 12.1% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 1.1 pp from 2.9% to 4.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Karrie International Hldgs had CAPEX/Revenue of 4.2%. Karrie International Hldgs's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 5.6%.
Return on investment
The company operates at low ROIC (11.99%) and ROE (11.68%). ROIC increased on 6.5 pp from 5.5% to 12.0% in FY2016. ROE increased on 3.8 pp from 7.9% to 11.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 1.5x. Net Debt / EBITDA dropped on 0.5x from 0.9x to 0.5x in FY2016. Debt increased on 9.1% while cash jumped on 23.2%.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide Karrie International Hldgs benchmarking against other companies in Miscellaneous Manufactur 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | 59.5% | 45.9% | 45.0% | 26.9% | |
| TK Group Holdings Ltd ($2283) | 40.2% | 9.3% | 11.8% | 20.0% | |
| AMCO United Holding Ltd ($2970) | | 10.8% | 53.9% | 16.8% | 31.1% |
| Yusei Holdings Ltd ($96) | 18.4% | -9.3% | 6.7% | 15.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 1.5% | 22.2% | 43.2% | 11.7% | |
| |
|---|
| Median (25 companies) | -1.8% | -0.7% | 8.2% | -5.6% | 95.5% |
|---|
| Karrie International Hldgs ($1050) | | 0.1% | -11.3% | 27.4% | 11.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Man Sang International Ltd ($938) | 42.4% | 32.8% | 60.3% | 78.6% | 56.4% |
| Time Watch Investments Ltd ($2033) | 60.2% | 60.6% | 65.0% | 68.1% | |
| China Environmental Energy Investment Ltd ($986) | 14.0% | 1.2% | 9.0% | 49.2% | |
| Lee & Man Chemical Co Ltd ($746) | 34.3% | 35.7% | 41.9% | 39.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 33.2% | 35.1% | 37.4% | 38.7% | |
| |
|---|
| Median (24 companies) | 19.8% | 20.8% | 24.9% | 23.9% | 30.8% |
|---|
| Karrie International Hldgs ($1050) | 8.2% | 10.6% | 14.3% | 11.0% | 12.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 30.4% | 31.3% | 38.4% | 37.6% | |
| Man Sang International Ltd ($938) | 24.9% | 15.4% | 37.0% | 33.8% | 40.4% |
| IPE Group Ltd ($929) | 25.6% | 22.5% | 29.5% | 29.1% | |
| DeTeam Co Ltd ($65) | 8.0% | 3.9% | -1.3% | 24.3% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.4% | 19.8% | 20.6% | 24.2% | |
| |
|---|
| Median (25 companies) | 8.0% | 9.8% | 9.8% | 7.9% | 22.0% |
|---|
| Karrie International Hldgs ($1050) | 2.7% | 5.0% | 6.6% | 5.9% | 9.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Environmental Energy Investment Ltd ($986) | 6.1% | 0.4% | 17.9% | 47.6% | |
| DeTeam Co Ltd ($65) | 6.7% | 47.0% | 5.6% | 33.1% | |
| Lee & Man Chemical Co Ltd ($746) | 5.8% | 51.1% | 33.7% | 22.8% | |
| China International Marine Containers Group Co Ltd ($2039) | 3.9% | 12.1% | 18.5% | 21.2% | |
| IPE Group Ltd ($929) | 6.3% | 13.3% | 12.3% | 13.3% | |
| |
|---|
| Median (25 companies) | 4.6% | 4.2% | 3.8% | 4.3% | 0.2% |
|---|
| Karrie International Hldgs ($1050) | 4.9% | 4.7% | 5.2% | 7.4% | 4.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Time Watch Investments Ltd ($2033) | 34.5% | 27.1% | 27.8% | 27.9% | |
| TK Group Holdings Ltd ($2283) | 36.8% | 31.1% | 29.4% | 27.6% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 16.9% | 17.7% | 20.0% | 21.1% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 19.7% | 17.8% | 16.5% | 19.4% | |
| Yusei Holdings Ltd ($96) | 4.2% | 7.0% | 13.6% | 14.1% | |
| |
|---|
| Median (25 companies) | 4.3% | 3.6% | 3.9% | 1.5% | 7.4% |
|---|
| Karrie International Hldgs ($1050) | 1.1% | 4.4% | 7.0% | 5.5% | 12.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Continental Holdings Ltd ($513) | | 20.1x | 92.9x | 4,203.6x | |
| South China China Ltd ($413) | | 37.5x | 2,842.3x | 27.3x | |
| Launch Tech Co Ltd ($2488) | 7.6x | 2.4x | 3.9x | 14.5x | |
| China International Marine Containers Group Co Ltd ($2039) | 4.0x | 4.7x | 5.8x | 9.8x | |
| VS International Group Ltd ($1002) | 5.1x | 6.5x | 4.4x | 3.3x | |
| |
|---|
| Median (22 companies) | -0.2x | -0.2x | 0.1x | 0.1x | -3.5x |
|---|
| Karrie International Hldgs ($1050) | 0.2x | 0.2x | -0.2x | 0.9x | 0.5x |
