Kong Sun Holdings Ltd EBITDA surged on 464% in 2015 and EBITDA Margin increased on 2.2 pp from 3.2% to 5.4%
13/12/2016 • About Kong Sun Holdings Ltd (
$295) • By InTwits
Kong Sun Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kong Sun Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is 0.1%
- EBITDA Margin is expanding: 5.4% in 2015 vs. 3.2% in 2014 vs. -23.0% in 2011
- Kong Sun Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 79.3%. At the same time it's a lot of higher than industry average of 36.9%.
- CAPEX is quite volatile: 532 in 2015, 199 in 2014, 2.0 in 2013, 20.7 in 2012, 2.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.1%
- It operates with high leverage: Net Debt/EBITDA is 34.0x while industry average is 8.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kong Sun Holdings Ltd ($295) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 59 | 7 | 7 | 524 | 1,736 | 231.2% |
| Gross Profit | 3 | 1 | 1 | 49 | 191 | 288.9% |
| SG&A | 21 | 17 | 11 | 40 | 191 | 372.7% |
| EBITDA | -14 | -19 | -6 | 17 | 94 | 463.8% |
| Net Income | -36 | -9 | -6 | 12 | -99 | -948.5% |
Balance Sheet
|
|---|
| Cash | 49 | 85 | 87 | 1,008 | 1,338 | 32.7% |
| Short Term Debt | 5 | 7 | 8 | 199 | 1,029 | 416.9% |
| Long Term Debt | 1 | 0 | 1 | 424 | 3,519 | 729.3% |
Cash flow
|
|---|
| Capex | 2 | 21 | 2 | 199 | 532 | 167.4% |
Ratios
|
|---|
| Revenue growth | -18.7% | -88.3% | 5.1% | 7,067.0% | 231.2% | |
| EBITDA growth | -4.7% | 38.4% | -70.1% | -396.4% | 463.8% | |
| Gross Margin | 5.7% | 16.7% | 20.5% | 9.4% | 11.0% | 1.6% |
| EBITDA Margin | -23.0% | -271.6% | -77.2% | 3.2% | 5.4% | 2.2% |
| Net Income Margin | -60.8% | -127.3% | -84.4% | 2.2% | -5.7% | -7.9% |
| SG&A, % of revenue | 36.0% | 239.0% | 154.7% | 7.7% | 11.0% | 3.3% |
| CAPEX, % of revenue | 3.5% | 297.6% | 27.1% | 37.9% | 30.6% | -7.3% |
| ROIC | -8.2% | -11.3% | -4.1% | 0.8% | 0.1% | -0.7% |
| ROE | -17.8% | -4.6% | -2.8% | 1.0% | -3.6% | -4.6% |
| Net Debt/EBITDA | | | | -23.0x | 34.0x | 57.0x |
Revenue and profitability
Kong Sun Holdings Ltd's Revenue jumped on 231% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.2 pp from 3.2% to 5.4% in 2015.
Gross Margin increased slightly on 1.6 pp from 9.4% to 11.0% in 2015. SG&A as a % of Revenue increased on 3.3 pp from 7.7% to 11.0% in 2015.
Net Income marign decreased on 7.9 pp from 2.2% to -5.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 30.6%. CAPEX/Revenue dropped on 267 pp from 298% in 2012 to 30.6% in 2015. Average CAPEX/Revenue for the last three years was 31.9%.To fuel this fast growth the company made large investments to CAPEX (564% of EBITDA).
Return on investment
The company operates at low but positive ROIC (0.13%) and negative ROE (-3.60%). ROIC decreased slightly on 0.68 pp from 0.81% to 0.13% in 2015. ROE decreased on 4.6 pp from 1.0% to -3.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 34.0x and Debt / EBITDA is 48.2x. Net Debt / EBITDA jumped on 57.0x from -23.0x to 34.0x in 2015. Debt surged on 630% in 2015 while cash jumped on 32.7% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Kong Sun Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Beijing Development HK Ltd ($154) | | 12.5% | | | 1,048.9% |
| CIAM Group Ltd ($378) | | -62.2% | 47.9% | -40.0% | 211.5% |
| Melco International Development Ltd ($200) | | 16.5% | 21.7% | 3.0% | 134.9% |
| New Century Group Hong Kong Ltd ($234) | | | 326.7% | -70.3% | 118.2% |
| Greater China Holdings Ltd ($431) | | -35.8% | -72.1% | 67.3% | 110.3% |
| |
|---|
| Median (45 companies) | 11.7% | 11.0% | 4.9% | 12.6% | 6.1% |
|---|
| Kong Sun Holdings Ltd ($295) | | -88.3% | 5.1% | 7,067.0% | 231.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | | 27.3% | 85.2% | 82.8% | 91.5% |
| Melco International Development Ltd ($200) | 72.0% | 63.1% | 52.9% | 54.5% | 79.4% |
| CIAM Group Ltd ($378) | | | | | 75.8% |
| Emperor International Holdings Ltd ($163) | | 71.3% | 64.9% | 79.2% | 75.3% |
| Heng Fai Enterprises Ltd ($185) | | 89.0% | 89.5% | 58.3% | 74.7% |
| |
|---|
| Median (39 companies) | 30.8% | 33.4% | 36.0% | 34.4% | 37.5% |
|---|
| Kong Sun Holdings Ltd ($295) | 5.7% | 16.7% | 20.5% | 9.4% | 11.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | | -5.5% | 78.8% | 58.3% | 85.0% |
| Emperor International Holdings Ltd ($163) | | 180.7% | 131.8% | 100.6% | 73.9% |
| Pioneer Global Group Ltd ($224) | | -0.5% | -9.9% | -11.6% | 64.3% |
| C C Land Holdings Ltd ($1224) | 22.0% | 27.0% | 23.6% | 24.6% | 55.7% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | 55.7% |
| |
|---|
| Median (45 companies) | 7.2% | 3.3% | 3.8% | 9.3% | 6.8% |
|---|
| Kong Sun Holdings Ltd ($295) | -23.0% | -271.6% | -77.2% | 3.2% | 5.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Fai Enterprises Ltd ($185) | | 4.8% | 77.1% | 310.0% | 458.1% |
| Chinney Investments Ltd ($216) | | 17.5% | 103.4% | 111.3% | 230.9% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Goldin Properties Holdings Ltd ($283) | | 2,178.4% | 1,190.0% | 50.1% | 202.4% |
| Carnival Group International Holdings Ltd ($996) | | | 137.9% | 61.0% | 133.3% |
| |
|---|
| Median (45 companies) | 5.2% | 2.5% | 3.6% | 5.4% | 6.0% |
|---|
| Kong Sun Holdings Ltd ($295) | 3.5% | 297.6% | 27.1% | 37.9% | 30.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fulum Group Holdings Ltd ($1443) | | | 116.3% | 55.5% | 29.8% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | 15.0% |
| Niraku GC Holdings Inc ($1245) | | | 19.0% | 18.8% | 13.1% |
| Top Spring International Holdings Ltd ($3688) | 27.9% | 15.6% | 6.9% | 7.3% | 8.0% |
| |
|---|
| Median (45 companies) | 1.0% | 0.1% | 0.6% | 1.2% | 0.3% |
|---|
| Kong Sun Holdings Ltd ($295) | -8.2% | -11.3% | -4.1% | 0.8% | 0.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | 92.3x |
| Multifield International Holdings Ltd ($898) | 12.0x | 3.2x | 7.3x | 3.0x | 55.9x |
| CIAM Group Ltd ($378) | -48.0x | | | | 32.6x |
| Chuang's Consortium International Ltd ($367) | | 0.7x | 5.0x | | 23.9x |
| |
|---|
| Median (26 companies) | 2.7x | 2.4x | 2.7x | 2.9x | 2.4x |
|---|
| Kong Sun Holdings Ltd ($295) | | | | -23.0x | 34.0x |
