Kin Yat Holdings Ltd EBITDA dropped on 21.9% and EBITDA Margin decreased on 2.3 pp from 8.6% to 6.3%
28/06/2016 • About Kin Yat Holdings Ltd (
$638) • By InTwits
Kin Yat Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kin Yat Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 49.6 in FY2016, 104 in FY2015, 138 in FY2014, 81.7 in FY2013, 160 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kin Yat Holdings Ltd ($638) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,620 | 1,763 | 1,852 | 2,169 | 2,318 | 6.8% |
| Gross Profit | 160 | 226 | 234 | 268 | 288 | 7.5% |
| SG&A | 205 | 208 | 214 | 194 | 196 | 1.0% |
| EBITDA | 78 | 147 | 163 | 186 | 146 | -21.9% |
| Net Income | -28 | 39 | 20 | -122 | -70 | |
Balance Sheet
|
|---|
| Cash | 180 | 221 | 176 | 152 | 208 | 37.0% |
| Short Term Debt | 153 | 159 | 188 | 146 | 189 | 29.0% |
| Long Term Debt | 154 | 110 | 60 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 160 | 82 | 138 | 104 | 50 | -52.6% |
Ratios
|
|---|
| Revenue growth | -5.9% | 8.8% | 5.0% | 17.1% | 6.8% | |
| EBITDA growth | -63.4% | 90.3% | 10.4% | 14.4% | -21.9% | |
| Gross Margin | 9.9% | 12.8% | 12.6% | 12.4% | 12.4% | 0.1% |
| EBITDA Margin | 4.8% | 8.4% | 8.8% | 8.6% | 6.3% | -2.3% |
| Net Income Margin | -1.7% | 2.2% | 1.1% | -5.6% | -3.0% | 2.6% |
| SG&A, % of revenue | 12.6% | 11.8% | 11.5% | 8.9% | 8.5% | -0.5% |
| CAPEX, % of revenue | 9.8% | 4.6% | 7.5% | 4.8% | 2.1% | -2.7% |
| ROIC | -0.7% | 4.5% | 4.9% | 6.2% | 3.4% | -2.7% |
| ROE | -2.8% | 3.7% | 1.8% | -11.3% | -7.2% | 4.0% |
| Net Debt/EBITDA | 1.6x | 0.3x | 0.4x | -0.0x | -0.1x | -0.1x |
Revenue and profitability
The company's Revenue increased on 6.8%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 8.6% to 6.3% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 2.6 pp from -5.6% to -3.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.1%. The company showed decline in CAPEX/Revenue of 2.5 pp from 4.6% in FY2013 to 2.1% in FY2016. It's average level of CAPEX/Revenue for the last three years was 4.8%.
Return on investment
The company operates at low but positive ROIC (3.42%) and negative ROE (-7.24%). ROIC decreased on 2.7 pp from 6.2% to 3.4% in FY2016. ROE increased on 4.0 pp from -11.3% to -7.2% in FY2016.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from -0.030x to -0.1x in FY2016. Debt jumped on 29.0% while cash surged on 37.0%.
Appendix 1: Peers in Toys/Games/Hobbies
Below we provide Kin Yat Holdings Ltd benchmarking against other companies in Toys/Games/Hobbies 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 |
|---|
| Leyou Technologies Holdings Ltd ($1089) | 18.8% | 32.3% | 17.7% | 31.0% | |
| Dream International Ltd ($1126) | 24.9% | -0.1% | 21.0% | 10.8% | |
| Matrix Holdings Ltd ($1005) | -0.2% | 17.5% | 12.2% | 10.1% | |
| Kader Holdings Co Ltd ($180) | -3.7% | -25.8% | -11.1% | 8.3% | |
| Quali-Smart Holdings Ltd ($1348) | 20.1% | -9.4% | -2.6% | 7.2% | |
| |
|---|
| Median (9 companies) | 18.8% | 17.5% | 17.7% | 7.2% | |
|---|
| Kin Yat Holdings Ltd ($638) | | 8.8% | 5.0% | 17.1% | 6.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Playmates Holdings Ltd ($635) | 65.7% | 66.1% | 64.7% | 65.6% | |
| Playmates Toys Ltd ($869) | 60.3% | 62.8% | 61.9% | 61.6% | |
| Green International Holdings Ltd ($2700) | 17.8% | 1.8% | 8.1% | 59.2% | |
| Matrix Holdings Ltd ($1005) | 34.3% | 37.1% | 38.4% | 36.9% | |
| Kiu Hung International Holdings Ltd ($381) | 30.9% | 29.0% | 32.1% | 35.7% | |
| |
|---|
| Median (8 companies) | 28.2% | 29.1% | 27.3% | 36.3% | |
|---|
| Kin Yat Holdings Ltd ($638) | 9.9% | 12.8% | 12.6% | 12.4% | 12.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Playmates Holdings Ltd ($635) | 22.0% | 36.7% | 33.5% | 32.8% | |
| Playmates Toys Ltd ($869) | 15.1% | 33.0% | 30.2% | 25.8% | |
| Kader Holdings Co Ltd ($180) | -4.2% | -3.0% | 5.8% | 23.0% | |
| Matrix Holdings Ltd ($1005) | 10.2% | 13.2% | 15.0% | 17.4% | |
| Dream International Ltd ($1126) | 13.2% | 14.8% | 9.8% | 12.9% | |
| |
|---|
| Median (9 companies) | 9.8% | 5.6% | 5.8% | 12.9% | |
|---|
| Kin Yat Holdings Ltd ($638) | 4.8% | 8.4% | 8.8% | 8.6% | 6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Green International Holdings Ltd ($2700) | 0.2% | 3.2% | 6.5% | 29.2% | |
| Playmates Holdings Ltd ($635) | 11.5% | 4.5% | 2.0% | 15.4% | |
| Dream International Ltd ($1126) | 2.9% | 3.8% | 11.2% | 7.3% | |
| Leyou Technologies Holdings Ltd ($1089) | 15.8% | 3.8% | 2.6% | 4.5% | |
| Quali-Smart Holdings Ltd ($1348) | 1.5% | 2.2% | 12.7% | 3.0% | |
| |
|---|
| Median (9 companies) | 3.5% | 3.2% | 2.8% | 3.0% | |
|---|
| Kin Yat Holdings Ltd ($638) | 9.8% | 4.6% | 7.5% | 4.8% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Playmates Toys Ltd ($869) | 30.7% | 121.1% | 73.0% | 36.6% | |
| Matrix Holdings Ltd ($1005) | 5.9% | 13.1% | 18.6% | 21.2% | |
| Dream International Ltd ($1126) | 19.3% | 19.4% | 13.3% | 19.4% | |
| Kader Holdings Co Ltd ($180) | -5.7% | -3.9% | 0.6% | 7.9% | |
| Playmates Holdings Ltd ($635) | 2.4% | 12.6% | 12.0% | 7.9% | |
| |
|---|
| Median (9 companies) | 5.9% | 12.6% | 9.1% | 7.9% | |
|---|
| Kin Yat Holdings Ltd ($638) | -0.7% | 4.5% | 4.9% | 6.2% | 3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 0.6x | -0.7x | 0.9x | 4.5x | |
| Kader Holdings Co Ltd ($180) | | | 9.6x | 1.5x | |
| Leyou Technologies Holdings Ltd ($1089) | 1.1x | 4.4x | 3.8x | 1.2x | |
| Matrix Holdings Ltd ($1005) | 0.6x | 0.0x | -0.2x | -0.6x | |
| Dream International Ltd ($1126) | -1.5x | -1.5x | -1.3x | -1.1x | |
| |
|---|
| Median (7 companies) | 0.6x | -0.5x | -0.2x | -0.6x | |
|---|
| Kin Yat Holdings Ltd ($638) | 1.6x | 0.3x | 0.4x | -0.0x | -0.1x |
