Sunwah Kingsway Capital Holdings Ltd reports 1,659% CAPEX growth in 2016 while 52.3% Revenue decline
19/09/2016 • About Sunwah Kingsway Capital Holdings Ltd (
$188) • By InTwits
Sunwah Kingsway Capital Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sunwah Kingsway Capital Holdings Ltd is a company in decline: FY2016 revenue growth was -52.3%, 5 years revenue CAGR was -19.4%
- The company operates at negative EBITDA Margin: -85.5%
- Sunwah Kingsway Capital Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -14.2%0
- Sunwah Kingsway Capital Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 133.9%. At the same time it's a lot of higher than industry average of 6.7%.
- CAPEX is quite volatile: 6.3 in FY2016, 0.36 in FY2015, 0.068 in FY2014, 5.5 in FY2013, 229 in FY2012
- The company has unprofitable business model: ROIC is at -6.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sunwah Kingsway Capital Holdings Ltd ($188) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 34.9 | 113.5 | 170.1 | 130.9 | 62.4 | -52.3% |
| EBITDA | -106.9 | 13.1 | 49.7 | 24.6 | -53.4 | -316.6% |
| Net Income | -119.2 | -2.3 | 31.9 | 9.1 | -69.9 | -869.4% |
Balance Sheet
|
|---|
| Cash | 130.1 | 70.9 | 239.1 | 369.5 | 150.4 | -59.3% |
| Short Term Debt | 0.0 | 71.6 | 82.4 | 95.0 | 17.1 | -82.0% |
| Long Term Debt | 103.0 | 82.4 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 228.5 | 5.5 | 0.1 | 0.4 | 6.3 | 1,658.7% |
Ratios
|
|---|
| Revenue growth | -81.0% | 225.1% | 49.8% | -23.0% | -52.3% | |
| EBITDA growth | -312.8% | -112.3% | 279.3% | -50.4% | -316.6% | |
| EBITDA Margin | -306.3% | 11.5% | 29.2% | 18.8% | -85.5% | -104.4% |
| Net Income Margin | -341.3% | -2.1% | 18.7% | 6.9% | -112.0% | -118.9% |
| CAPEX, % of revenue | 654.5% | 4.8% | 0.0% | 0.3% | 10.1% | 9.8% |
| ROIC | -16.6% | -0.0% | 4.5% | 1.1% | -6.4% | -7.5% |
| ROE | -19.5% | -0.4% | 4.9% | 1.1% | -7.3% | -8.4% |
| Net Debt/EBITDA | | 6.3x | -3.2x | -11.1x | | 11.1x |
Revenue and profitability
Sunwah Kingsway Capital Holdings Ltd's Revenue dropped on 52.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 48.1% to 49.0% in FY2016.
Net Income marign dropped on 119 pp from 6.9% to -112% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Sunwah Kingsway Capital Holdings Ltd's CAPEX/Revenue was 10.1% in FY2016. Sunwah Kingsway Capital Holdings Ltd showed CAPEX/Revenue growth of 5.3 pp from 4.8% in FY2013 to 10.1% in FY2016. For the last three years the average CAPEX/Revenue was 3.5%.
Return on investment
The company operates at negative ROIC (-6.39%) and ROE (-7.27%). ROIC decreased on 7.5 pp from 1.1% to -6.4% in FY2016. ROE decreased on 8.4 pp from 1.1% to -7.3% in FY2016.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 11.1x from -11.1x to in FY2016. Debt dropped on 82% while cash dropped on 59.3%.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Sunwah Kingsway Capital Holdings Ltd benchmarking against other companies in Diversified Finan Serv 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 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | | -23.1% | -87.3% | 1,860.5% | 25.3% |
| Crown International Corp Ltd ($727) | | -75.0% | 117.4% | 802.5% | -25.1% |
| Global Strategic Group Ltd ($8007) | -3.9% | 2.1% | 806.3% | 681.2% | |
| Upbest Group Ltd ($335) | | -61.8% | 24.1% | 208.1% | -63.4% |
| GF Securities Co Ltd ($1776) | 16.3% | 31.8% | 75.0% | 163.9% | |
| |
|---|
| Median (64 companies) | 7.7% | 14.9% | 26.5% | 25.3% | 19.1% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | | 225.1% | 49.8% | -23.0% | -52.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Roma Group Ltd ($8072) | | | 99.4% | 98.7% | |
| First China Financial Network Holdings Ltd ($8123) | 93.4% | | 94.5% | 97.4% | |
| China Smarter Energy Group Holdings Ltd ($1004) | 6.2% | 4.0% | 46.9% | 96.9% | 98.4% |
| Chinese Strategic Holdings Ltd ($8089) | 99.1% | 97.9% | 97.0% | 96.6% | |
| Allied Group Ltd ($373) | 95.1% | 94.4% | 93.6% | 92.2% | |
| |
|---|
| Median (12 companies) | 64.2% | 75.1% | 88.2% | 90.3% | 69.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -282.7% | -373.2% | -1,524.9% | 212.2% | 55.6% |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 91.3% | 86.4% | 92.9% | 107.0% | |
| Get Nice Holdings Ltd ($64) | 2.6% | 153.4% | 92.7% | 83.9% | 84.5% |
| Hong Kong Exchanges and Clearing Ltd ($388) | 81.6% | 73.4% | 75.7% | 82.1% | |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% |
| |
|---|
| Median (66 companies) | 23.0% | 37.2% | 47.9% | 32.4% | 52.0% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | -306.3% | 11.5% | 29.2% | 18.8% | -85.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 351.0% | 0.1% | 33.3% | 64.6% | |
| Willie International Holdings Ltd ($273) | | 0.3% | 0.8% | 58.0% | |
| China Assurance Finance Group Ltd ($8090) | 94.7% | 68.9% | 53.3% | 51.0% | |
| AID Partners Capital Holdings Ltd ($8088) | 4.1% | 2.9% | 28.4% | 26.6% | |
| Hongkong Chinese Ltd ($655) | | | 0.1% | 25.6% | 0.1% |
| |
|---|
| Median (65 companies) | 1.9% | 1.8% | 1.1% | 1.5% | 1.5% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | 654.5% | 4.8% | 0.0% | 0.3% | 10.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 29.1% | 20.1% | 21.5% | 29.1% | |
| China Smarter Energy Group Holdings Ltd ($1004) | -19.4% | -23.0% | -14.0% | 22.5% | 2.1% |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 32.7% | 20.7% | 14.0% | 15.3% | 12.5% |
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | |
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% |
| |
|---|
| Median (69 companies) | 4.4% | 4.2% | 4.9% | 3.6% | 3.8% |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | -16.6% | -0.0% | 4.5% | 1.1% | -6.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hoifu Energy Group Ltd ($7) | | | | 62.5x | |
| South China Financial Holdings Ltd ($619) | | | | 56.9x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 2.1x | 10.3x | 9.3x | 39.3x | 4.3x |
| Far East Horizon Ltd ($3360) | 16.9x | 21.7x | 20.0x | 20.8x | |
| Quam Ltd ($952) | 58.9x | 15.9x | 4.1x | 14.8x | -18.0x |
| |
|---|
| Median (49 companies) | -0.6x | 0.1x | 0.1x | 0.0x | 0.5x |
|---|
| Sunwah Kingsway Capital Holdings Ltd ($188) | | 6.3x | -3.2x | -11.1x | |
