Kwoon Chung Bus Holdings Ltd CAPEX jumped on 51.9% and Revenue increased slightly on 1.1%
30/06/2016 • About Kwoon Chung Bus Holdings Ltd (
$306) • By InTwits
Kwoon Chung Bus Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kwoon Chung Bus Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.4%. At the same time it's in pair with industry average of 13.6%.
- CAPEX is quite volatile: 464 in FY2016, 306 in FY2015, 140 in FY2014, 257 in FY2013, 309 in FY2012
- The company has highly profitable business model: ROIC is at 12.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kwoon Chung Bus Holdings Ltd ($306) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,923 | 2,075 | 2,189 | 2,362 | 2,389 | 1.1% |
| Gross Profit | 363 | 424 | 497 | 634 | 657 | 3.7% |
| SG&A | | | 293 | 305 | 312 | 2.2% |
| EBITDA | 255 | 334 | 453 | 616 | 613 | -0.5% |
| Net Income | 103 | 117 | 165 | 383 | 282 | -26.2% |
Balance Sheet
|
|---|
| Cash | 299 | 296 | 387 | 565 | 542 | -4.2% |
| Short Term Debt | 826 | 783 | 727 | 1,217 | 590 | -51.5% |
| Long Term Debt | 0 | 0 | 1 | 0 | 630 | 134,833.6% |
Cash flow
|
|---|
| Capex | 309 | 257 | 140 | 306 | 464 | 51.9% |
Ratios
|
|---|
| Revenue growth | -8.6% | 7.9% | 5.5% | 7.9% | 1.1% | |
| EBITDA growth | -21.6% | 31.1% | 35.5% | 36.1% | -0.5% | |
| Gross Margin | 18.9% | 20.4% | 22.7% | 26.8% | 27.5% | 0.7% |
| EBITDA Margin | 13.3% | 16.1% | 20.7% | 26.1% | 25.7% | -0.4% |
| Net Income Margin | 5.3% | 5.6% | 7.5% | 16.2% | 11.8% | -4.4% |
| SG&A, % of revenue | | | 13.4% | 12.9% | 13.1% | 0.1% |
| CAPEX, % of revenue | 16.1% | 12.4% | 6.4% | 12.9% | 19.4% | 6.5% |
| ROIC | 3.6% | 5.7% | 9.2% | 14.6% | 12.4% | -2.3% |
| ROE | 8.9% | 9.1% | 11.6% | 25.8% | 18.6% | -7.2% |
| Net Debt/EBITDA | 2.1x | 1.5x | 0.8x | 1.1x | 1.1x | 0.0x |
Revenue and profitability
The company's Revenue increased slightly on 1.1%. 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 0.69 pp from 26.8% to 27.5% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 4.4 pp from 16.2% to 11.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Kwoon Chung Bus Holdings Ltd's CAPEX/Revenue was 19.4% in FY2016. Kwoon Chung Bus Holdings Ltd showed CAPEX/Revenue growth of 7.1 pp from 12.4% in FY2013 to 19.4% in FY2016. It's average CAPEX/Revenue for the last three years was 12.9%.The company maintained rich investment policy and has spent a big chunk of EBITDA (75.8%) to CAPEX.
Return on investment
The company operates at good ROIC (12.35%) and ROE (18.58%). ROIC decreased on 2.3 pp from 14.6% to 12.4% in FY2016. ROE decreased on 7.2 pp from 25.8% to 18.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 2.0x. Net Debt / EBITDA increased on 0.048x from 1.1x to 1.1x in FY2016. Debt showed almost no change in FY2016 while cash decreased on 4.2%.
Appendix 1: Peers in Transportation
Below you can find Kwoon Chung Bus Holdings Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | 2,388.3% | 326.5% |
| China Best Group Holding Ltd ($370) | 202.4% | -53.6% | 459.4% | 25.9% | |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 10.9% | 27.9% | 15.0% | 13.3% | |
| Guangshen Railway Co Ltd ($525) | 2.7% | 4.7% | -6.9% | 6.9% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 9.4% | 6.9% | 12.9% | 5.1% | |
| |
|---|
| Median (31 companies) | 7.2% | 4.0% | 5.2% | -6.7% | 4.2% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | | 7.9% | 5.5% | 7.9% | 1.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.3% | 44.8% | 46.6% | 48.7% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.1% | 42.4% | 43.3% | 40.5% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 23.1% | 25.1% | 24.1% | 23.1% | |
| Tianjin Port Development Holdings Ltd ($3382) | 22.5% | 18.4% | 13.6% | 22.7% | |
| China Shipping Development Co Ltd ($1138) | -1.8% | -1.6% | 11.3% | 19.2% | |
| |
|---|
| Median (27 companies) | 13.0% | 10.9% | 10.3% | 11.6% | 1.4% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 18.9% | 20.4% | 22.7% | 26.8% | 27.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MTR Corp Ltd ($66) | 42.7% | 37.6% | 45.2% | 41.6% | |
| Qinhuangdao Port Co Ltd ($3369) | 46.0% | 44.6% | 46.5% | 41.1% | |
| CIG Yangtze Ports PLC ($8233) | 30.2% | 27.6% | 38.5% | 39.5% | |
| China Shipping Development Co Ltd ($1138) | 12.5% | 3.0% | 24.7% | 26.7% | |
| Transport International Holdings Ltd ($62) | 12.1% | 14.4% | 15.7% | 19.6% | |
| |
|---|
| Median (31 companies) | 8.8% | 6.4% | 7.2% | 6.9% | -0.7% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 13.3% | 16.1% | 20.7% | 26.1% | 25.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 4.0% | 6.1% | 40.7% | 164.7% | 8.7% |
| Frontier Services Group Ltd ($500) | 6.3% | 3.6% | 63.3% | 75.9% | |
| MTR Corp Ltd ($66) | 31.1% | 34.5% | 30.8% | 52.0% | |
| CIG Yangtze Ports PLC ($8233) | 17.8% | 24.8% | 2.1% | 50.7% | |
| Transport International Holdings Ltd ($62) | 7.9% | 16.2% | 16.0% | 26.2% | |
| |
|---|
| Median (31 companies) | 7.7% | 8.5% | 7.4% | 9.0% | 6.2% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 16.1% | 12.4% | 6.4% | 12.9% | 19.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 21.1% | 20.9% | 19.1% | 19.3% | |
| SITC International Holdings Co Ltd ($1308) | 8.2% | 9.1% | 9.1% | 11.2% | |
| CIG Yangtze Ports PLC ($8233) | 4.9% | 5.7% | 11.0% | 11.1% | |
| On Time Logistics Holdings Ltd ($6123) | 15.6% | 15.5% | 16.7% | 11.1% | |
| Kerry Logistics Network Ltd ($636) | 12.0% | 13.4% | 10.5% | 10.9% | |
| |
|---|
| Median (31 companies) | 3.3% | 2.8% | 3.2% | 3.3% | -2.1% |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 3.6% | 5.7% | 9.2% | 14.6% | 12.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jinhui Holdings Co Ltd ($137) | 5.0x | 4.2x | 17.5x | 19.6x | |
| China Shipping Development Co Ltd ($1138) | 20.2x | 92.8x | 12.8x | 11.4x | |
| China COSCO Holdings Co Ltd ($1919) | | 18.8x | 9.0x | 8.1x | |
| Pacific Basin Shipping Ltd ($2343) | 2.1x | 4.6x | | 4.7x | |
| AMS Public Transport Holdings Ltd ($77) | 1.2x | 11.6x | 7.7x | 4.5x | 1.6x |
| |
|---|
| Median (20 companies) | 0.9x | 1.5x | 0.9x | 1.0x | 1.6x |
|---|
| Kwoon Chung Bus Holdings Ltd ($306) | 2.1x | 1.5x | 0.8x | 1.1x | 1.1x |
