Kingbo Strike Ltd EBITDA dropped on 88.2% while Revenue surged on 81.8%
20/12/2016 • About Kingbo Strike Ltd (
$1421) • By InTwits
Kingbo Strike Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kingbo Strike Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.3%
- EBITDA Margin is declining: 1.4% in FY2016 vs. 21.9% in FY2015 vs. 26.4% in FY2012
- EBITDA Margin is quite volatile: 1.4% in FY2016, 21.9% in FY2015, 27.7% in FY2014, 37.4% in FY2013, 26.4% in FY2012
- Kingbo Strike Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 0.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kingbo Strike Ltd ($1421) key annual financial indicators
| mln. SGD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15.609 | 18.661 | 22.628 | 11.826 | 21.501 | 81.8% |
| Gross Profit | 5.052 | 8.284 | 9.113 | 3.634 | 3.022 | -16.8% |
| SG&A | | | | 1.417 | 1.986 | 40.1% |
| EBITDA | 4.123 | 6.982 | 6.277 | 2.591 | 0.305 | -88.2% |
| Net Income | 3.670 | 6.542 | 5.747 | 3.887 | 3.982 | 2.4% |
Balance Sheet
|
|---|
| Cash | 13.354 | 7.249 | 18.252 | 17.629 | 12.672 | -28.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 6.820 | |
Cash flow
|
|---|
| Capex | 0.017 | 0.022 | 0.011 | 0.400 | 0.221 | -44.7% |
Ratios
|
|---|
| Revenue growth | -52.0% | 19.5% | 21.3% | -47.7% | 81.8% | |
| EBITDA growth | -37.2% | 69.4% | -10.1% | -58.7% | -88.2% | |
| Gross Margin | 32.4% | 44.4% | 40.3% | 30.7% | 14.1% | -16.7% |
| EBITDA Margin | 26.4% | 37.4% | 27.7% | 21.9% | 1.4% | -20.5% |
| Net Income Margin | 23.5% | 35.1% | 25.4% | 32.9% | 18.5% | -14.3% |
| SG&A, % of revenue | | | | 12.0% | 9.2% | -2.7% |
| CAPEX, % of revenue | 0.1% | 0.1% | 0.0% | 3.4% | 1.0% | -2.4% |
| ROIC | 56.9% | 125.4% | 48.9% | 11.4% | 0.3% | -11.0% |
| ROE | 58.4% | 142.4% | 50.0% | 18.4% | 7.0% | -11.4% |
| Net Debt/EBITDA | -3.2x | -1.0x | -2.9x | -6.8x | -19.2x | -12.4x |
Revenue and profitability
Kingbo Strike Ltd's Revenue surged on 81.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 665 pp from -217% to -882% in FY2016.
Gross Margin dropped on 16.7 pp from 30.7% to 14.1% in FY2016. SG&A as a % of Revenue decreased on 2.7 pp from 12.0% to 9.2% in FY2016.
Net Income marign dropped on 14.3 pp from 32.9% to 18.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Kingbo Strike Ltd's CAPEX/Revenue was 1.0% in FY2016. The company showed small growth in CAPEX/Revenue of 0.91 pp from 0.12% in FY2013 to 1.0% in FY2016. For the last three years the average CAPEX/Revenue was 1.5%.The company invested a big chunk of EBITDA (72.5%) to CAPEX to secure its growth.
Return on investment
The company operates at low ROIC (0.34%) and ROE (7.02%). ROIC dropped on 11.0 pp from 11.4% to 0.34% in FY2016. ROE dropped on 11.4 pp from 18.4% to 7.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -19.2x and Debt / EBITDA is 22.4x. Net Debt / EBITDA dropped on 12.4x from -6.8x to -19.2x in FY2016. Debt jumped while cash dropped on 28.1%.
Appendix 1: Peers in Engineering&Construction
Below we provide Kingbo Strike Ltd benchmarking against other companies in Engineering&Construction 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 |
|---|
| CNQC International Holdings Ltd ($1240) | 21.6% | 91.0% | 103.7% | 807.4% | |
| China National Culture Group Ltd ($745) | | -76.8% | -55.8% | 592.3% | 86.7% |
| Vision Fame International Holding Ltd ($1315) | | 45.9% | -10.5% | 105.6% | 40.9% |
| Sino Credit Holdings Ltd ($628) | | | | 97.4% | -40.3% |
| Grand Ming Group Holdings Ltd ($1271) | | -26.9% | -37.4% | 74.8% | 14.3% |
| |
|---|
| Median (44 companies) | 19.1% | 24.8% | 20.9% | 10.8% | 1.5% |
|---|
| Kingbo Strike Ltd ($1421) | | 19.5% | 21.3% | -47.7% | 81.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 66.4% | 62.1% | 62.4% | 61.1% | |
| Huayu Expressway Group Ltd ($1823) | 43.6% | 65.6% | 64.0% | 58.9% | |
| Broad Greenstate International Co Ltd ($1253) | 20.1% | 28.7% | 35.8% | 36.7% | |
| Sam Woo Construction Group Ltd ($3822) | 33.2% | 27.3% | 33.6% | 36.0% | 19.8% |
| China National Culture Group Ltd ($745) | 0.9% | 12.1% | 10.3% | 32.3% | 19.2% |
| |
|---|
| Median (39 companies) | 16.4% | 16.0% | 15.4% | 15.6% | 10.3% |
|---|
| Kingbo Strike Ltd ($1421) | 32.4% | 44.4% | 40.3% | 30.7% | 14.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huayu Expressway Group Ltd ($1823) | 46.2% | 73.8% | 77.1% | 76.2% | |
| HNA Infrastructure Company Ltd ($357) | 62.8% | 63.7% | 62.8% | 61.7% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 31.2% | 20.6% | 36.2% | 60.9% | |
| Beijing Capital International Airport Co Ltd ($694) | 53.4% | 52.9% | 50.3% | 51.6% | |
| China National Culture Group Ltd ($745) | -30.4% | -72.7% | -279.2% | 45.3% | -14.6% |
| |
|---|
| Median (44 companies) | 9.9% | 10.4% | 9.2% | 8.3% | 3.1% |
|---|
| Kingbo Strike Ltd ($1421) | 26.4% | 37.4% | 27.7% | 21.9% | 1.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HNA Infrastructure Company Ltd ($357) | 36.8% | 5.7% | 85.4% | 155.4% | |
| Grand Ming Group Holdings Ltd ($1271) | 0.0% | 16.1% | 8.7% | 33.8% | 14.0% |
| Beijing Capital International Airport Co Ltd ($694) | 3.5% | 6.6% | 7.2% | 28.2% | |
| NEW Concepts Holdings Ltd ($2221) | 1.7% | 1.2% | 3.1% | 20.5% | 0.3% |
| Louis XIII Holdings Ltd ($577) | 1.2% | 29.5% | 9.3% | 16.1% | 47.3% |
| |
|---|
| Median (44 companies) | 2.3% | 3.3% | 1.8% | 2.0% | 2.4% |
|---|
| Kingbo Strike Ltd ($1421) | 0.1% | 0.1% | 0.0% | 3.4% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| In Construction Holdings Ltd ($1500) | | 52.8% | 37.0% | 49.4% | 40.4% |
| Chun Sing Engineering Holdings Ltd ($2277) | | 98.3% | 54.9% | 43.7% | 21.6% |
| NEW Concepts Holdings Ltd ($2221) | | 51.0% | 78.8% | 39.0% | 23.3% |
| Sam Woo Construction Group Ltd ($3822) | | 28.2% | 28.7% | 33.5% | 18.3% |
| Ngai Shun Holdings Ltd ($1246) | 68.8% | 77.2% | 45.2% | 31.0% | -2.9% |
| |
|---|
| Median (46 companies) | 5.8% | 5.9% | 4.4% | 5.5% | 1.9% |
|---|
| Kingbo Strike Ltd ($1421) | 56.9% | 125.4% | 48.9% | 11.4% | 0.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Deson Development International Holdings ($262) | 3.8x | 4.9x | 13.7x | 47.0x | |
| Hsin Chong Construction Group Ltd ($404) | 1.8x | 8.0x | 10.2x | 41.7x | |
| China Resources and Transportation Group Ltd ($269) | | | 66.7x | 29.7x | |
| CNC Holdings Ltd ($8356) | | 22.0x | 21.9x | 24.3x | 2.7x |
| Louis XIII Holdings Ltd ($577) | 0.8x | -12.5x | -23.2x | 19.1x | |
| |
|---|
| Median (38 companies) | 0.9x | 0.3x | 0.4x | 1.3x | 0.4x |
|---|
| Kingbo Strike Ltd ($1421) | -3.2x | -1.0x | -2.9x | -6.8x | -19.2x |
