Lee Kee Holdings Ltd reports 334% EBITDA decline in 2016 and 14.9% Revenue decline
27/06/2016 • About Lee Kee Holdings Ltd (
$637) • By InTwits
Lee Kee Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lee Kee Holdings Ltd is a company in decline: FY2016 revenue growth was -14.9%, 5 years revenue CAGR was -9.6%
- The company operates at negative EBITDA Margin: -5.0%
- Lee Kee Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -0.2% for the sames years0
- The company has unprofitable business model: ROIC is at -8.8%
- It operates with high leverage: Net Debt/EBITDA is 5.8x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lee Kee Holdings Ltd ($637) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,471 | 2,424 | 2,494 | 2,494 | 2,123 | -14.9% |
| Gross Profit | 52 | 81 | 131 | 131 | -0 | -100.1% |
| SG&A | 91 | 93 | 105 | 105 | 107 | 1.3% |
| EBITDA | -9 | -1 | 45 | 45 | -106 | -334.3% |
| Net Income | -30 | -2 | | 27 | -117 | -526.9% |
Balance Sheet
|
|---|
| Cash | 422 | 273 | 131 | 131 | 164 | 25.1% |
| Short Term Debt | 2 | 168 | 405 | 405 | 93 | -77.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
Ratios
|
|---|
| Revenue growth | -29.8% | -1.9% | 2.9% | 0.0% | -14.9% | |
| EBITDA growth | -75.4% | -91.9% | -6,373.7% | 0.0% | -334.3% | |
| Gross Margin | 2.1% | 3.4% | 5.2% | 5.2% | -0.0% | -5.2% |
| EBITDA Margin | -0.4% | -0.0% | 1.8% | 1.8% | -5.0% | -6.8% |
| Net Income Margin | -1.2% | -0.1% | 0.0% | 1.1% | -5.5% | -6.6% |
| SG&A, % of revenue | 3.7% | 3.8% | 4.2% | 4.2% | 5.0% | 0.8% |
| ROIC | -1.6% | -0.9% | 2.6% | 2.4% | -8.8% | -11.1% |
| ROE | -2.6% | -0.2% | | 2.4% | -10.9% | -13.3% |
| Net Debt/EBITDA | | | 6.1x | 6.1x | | -6.1x |
Revenue and profitability
Lee Kee Holdings Ltd's Revenue dropped on 14.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 6.8 pp from 1.8% to -5.0% in FY2016.
Gross Margin decreased on 5.2 pp from 5.2% to -0.0076% in FY2016. SG&A as a % of Revenue increased slightly on 0.80 pp from 4.2% to 5.0% in FY2016.
Net Income marign decreased on 6.6 pp from 1.1% to -5.5% in FY2016.
Return on investment
The company operates at negative ROIC (-8.75%) and ROE (-10.86%). ROIC dropped on 11.1 pp from 2.4% to -8.8% in FY2016. ROE dropped on 13.3 pp from 2.4% to -10.9% in FY2016.
Leverage (Debt)
Debt level is 5.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 6.1x from 6.1x to in FY2016. Debt dropped on 77.1% while cash jumped on 25.1%.
Appendix 1: Peers in Distribution/Wholesale
Below we provide Lee Kee Holdings Ltd benchmarking against other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| |
|---|
| Median (35 companies) | 2.5% | 2.1% | 0.8% | -2.0% | -8.3% |
|---|
| Lee Kee Holdings Ltd ($637) | | -1.9% | 2.9% | 0.0% | -14.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| |
|---|
| Median (33 companies) | 17.5% | 18.2% | 19.3% | 21.1% | 24.4% |
|---|
| Lee Kee Holdings Ltd ($637) | 2.1% | 3.4% | 5.2% | 5.2% | -0.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (36 companies) | 2.6% | 2.5% | 4.6% | 4.9% | 6.2% |
|---|
| Lee Kee Holdings Ltd ($637) | -0.4% | -0.0% | 1.8% | 1.8% | -5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (36 companies) | 1.4% | 1.7% | 1.7% | 1.2% | 5.6% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | |
| |
|---|
| Median (37 companies) | 2.7% | 1.7% | 3.2% | 2.8% | 4.6% |
|---|
| Lee Kee Holdings Ltd ($637) | -1.6% | -0.9% | 2.6% | 2.4% | -8.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (26 companies) | -0.2x | -0.6x | -0.1x | -0.3x | -2.7x |
|---|
| Lee Kee Holdings Ltd ($637) | | | 6.1x | 6.1x | |
