Kingmaker Footwear Holdings Ltd reports 31.2% EBITDA growth in 2016 while 1.5% Revenue decline
30/06/2016 • About Kingmaker Footwear Holdings Ltd (
$1170) • By InTwits
Kingmaker Footwear Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kingmaker Footwear Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 5.0%.
- CAPEX is quite volatile: 119 in FY2016, 155 in FY2015, 62.8 in FY2014, 37.7 in FY2013, 111 in FY2012
- The company has business model with average profitability: ROIC is at 11.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kingmaker Footwear Holdings Ltd ($1170) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,655 | 1,809 | 1,923 | 2,378 | 2,343 | -1.5% |
| Gross Profit | 237 | 299 | 290 | 345 | 384 | 11.2% |
| SG&A | | 222 | 239 | 256 | 239 | -6.6% |
| EBITDA | 93 | 127 | 105 | 162 | 212 | 31.2% |
| Net Income | 54 | 94 | 68 | 92 | 120 | 30.0% |
Balance Sheet
|
|---|
| Cash | 168 | 548 | 246 | 406 | 666 | 63.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 111 | 38 | 63 | 155 | 119 | -23.1% |
Ratios
|
|---|
| Revenue growth | 10.0% | 9.3% | 6.3% | 23.7% | -1.5% | |
| EBITDA growth | -43.9% | 36.9% | -17.3% | 54.2% | 31.2% | |
| Gross Margin | 14.3% | 16.5% | 15.1% | 14.5% | 16.4% | 1.9% |
| EBITDA Margin | 5.6% | 7.0% | 5.5% | 6.8% | 9.0% | 2.3% |
| Net Income Margin | 3.3% | 5.2% | 3.5% | 3.9% | 5.1% | 1.2% |
| SG&A, % of revenue | | 12.3% | 12.4% | 10.8% | 10.2% | -0.6% |
| CAPEX, % of revenue | 6.7% | 2.1% | 3.3% | 6.5% | 5.1% | -1.4% |
| ROIC | 4.1% | 6.7% | 4.4% | 7.9% | 11.0% | 3.1% |
| ROE | 5.6% | 9.3% | 6.5% | 8.6% | 10.8% | 2.1% |
| Net Debt/EBITDA | -1.8x | -4.3x | -2.3x | -2.5x | -3.1x | -0.6x |
Revenue and profitability
The company's Revenue decreased slightly on 1.5%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.3 pp from 6.8% to 9.0% in FY2016.
Gross Margin increased slightly on 1.9 pp from 14.5% to 16.4% in FY2016. SG&A as a % of Revenue decreased slightly on 0.57 pp from 10.8% to 10.2% in FY2016.
Net Income marign increased slightly on 1.2 pp from 3.9% to 5.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.1% in FY2016. The company showed CAPEX/Revenue growth of 3.0 pp from 2.1% in FY2013 to 5.1% in FY2016. It's average CAPEX/Revenue for the last three years was 5.0%.The company invested a big chunk of EBITDA (56.2%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (11.02%) and ROE (10.78%). ROIC increased on 3.1 pp from 7.9% to 11.0% in FY2016. ROE increased on 2.1 pp from 8.6% to 10.8% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 63.9%.
Appendix 1: Peers in Apparel
Below you can find Kingmaker Footwear Holdings Ltd benchmarking vs. other companies in Apparel industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | -94.0% | 46.8% | 20.4% | 33.1% | |
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
| Koradior Holdings Ltd ($3709) | 48.3% | 44.7% | 47.7% | 23.9% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 36.3% | 29.2% | 37.4% | 23.6% | |
| Cabbeen Fashion Ltd ($2030) | 5.6% | 0.4% | 16.4% | 23.5% | |
| |
|---|
| Median (51 companies) | 5.3% | 5.4% | 5.4% | -2.1% | -17.8% |
|---|
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | |
| |
|---|
| Median (50 companies) | 25.0% | 24.3% | 26.0% | 25.0% | 12.7% |
|---|
| Kingmaker Footwear Holdings Ltd ($1170) | 14.3% | 16.5% | 15.1% | 14.5% | 16.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | |
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | |
| |
|---|
| Median (51 companies) | 11.1% | 10.9% | 7.5% | 6.4% | -7.4% |
|---|
| Kingmaker Footwear Holdings Ltd ($1170) | 5.6% | 7.0% | 5.5% | 6.8% | 9.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| |
|---|
| Median (50 companies) | 2.2% | 3.0% | 2.3% | 2.1% | 1.7% |
|---|
| Kingmaker Footwear Holdings Ltd ($1170) | 6.7% | 2.1% | 3.3% | 6.5% | 5.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (51 companies) | 12.4% | 7.3% | 5.3% | 4.5% | -11.0% |
|---|
| Kingmaker Footwear Holdings Ltd ($1170) | 4.1% | 6.7% | 4.4% | 7.9% | 11.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | |
| |
|---|
| Median (37 companies) | -0.2x | -0.6x | -0.2x | -0.8x | -0.3x |
|---|
| Kingmaker Footwear Holdings Ltd ($1170) | -1.8x | -4.3x | -2.3x | -2.5x | -3.1x |
