Road King Infrastructure Ltd EBITDA jumped on 74.1% in 2016 and EBITDA Margin increased on 4.9 pp from 16.6% to 21.5%
13/03/2017 • About Road King Infrastructure Ltd (
$1098) • By InTwits
Road King Infrastructure Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Road King Infrastructure Ltd is a growth stock: FY2016 revenue growth was 34.6%, 5 year revenue CAGR was 19.8% at FY2016 ROIC 11.3%
- The company has business model with average profitability: ROIC is at 11.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Road King Infrastructure Ltd ($1098) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,344 | 11,456 | 12,730 | 12,510 | 16,842 | 34.6% |
| Gross Profit | 2,718 | 2,933 | 3,334 | 2,883 | 4,222 | 46.4% |
| SG&A | 342 | 405 | 379 | 886 | 1,131 | 27.6% |
| EBITDA | 2,080 | 2,336 | 2,539 | 2,083 | 3,625 | 74.1% |
| Net Income | 818 | 1,002 | 1,005 | 820 | 1,250 | 52.4% |
Balance Sheet
|
|---|
| Cash | 5,168 | 6,677 | 3,724 | 3,072 | 8,049 | 162.0% |
| Short Term Debt | 3,700 | 6,185 | 5,524 | 6,763 | 6,052 | -10.5% |
| Long Term Debt | 8,088 | 7,928 | 9,768 | 7,406 | 11,807 | 59.4% |
Cash flow
|
|---|
| Capex | 265 | 74 | 28 | 8 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 36.8% | 22.6% | 11.1% | -1.7% | 34.6% | |
| EBITDA growth | 45.9% | 12.3% | 8.7% | -18.0% | 74.1% | |
| Gross Margin | 29.1% | 25.6% | 26.2% | 23.0% | 25.1% | 2.0% |
| EBITDA Margin | 22.3% | 20.4% | 19.9% | 16.6% | 21.5% | 4.9% |
| Net Income Margin | 8.8% | 8.7% | 7.9% | 6.6% | 7.4% | 0.9% |
| SG&A, % of revenue | 3.7% | 3.5% | 3.0% | 7.1% | 6.7% | -0.4% |
| CAPEX, % of revenue | 2.8% | 0.7% | 0.2% | 0.1% | | -0.1% |
| ROIC | 8.4% | 8.4% | 8.4% | 6.9% | 11.3% | 4.5% |
| ROE | 7.2% | 8.2% | 7.8% | 6.2% | 9.5% | 3.2% |
| Net Debt/EBITDA | 3.2x | 3.2x | 4.6x | 5.3x | 2.7x | -2.6x |
Revenue and profitability
Road King Infrastructure Ltd's Revenue surged on 34.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from 13.3% to 9.6% in FY2016.
Gross Margin increased on 2.0 pp from 23.0% to 25.1% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 0.87 pp from 6.6% to 7.4% in FY2016.
Return on investment
The company operates at low ROIC (11.34%) and ROE (9.45%). ROIC increased on 4.5 pp from 6.9% to 11.3% in FY2016. ROE increased on 3.2 pp from 6.2% to 9.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 4.9x. Net Debt / EBITDA dropped on 2.6x from 5.3x to 2.7x in FY2016. Debt jumped on 26.0% while cash surged on 162%.
Appendix 1: Peers in Real Estate
Below you can find Road King Infrastructure Ltd benchmarking vs. other companies in Real Estate 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 |
|---|
| Guangdong Land Holdings Ltd ($124) | | | | 24,971.2% | |
| GR Properties Ltd ($108) | 21.6% | -82.9% | 14.6% | 1,203.6% | |
| Wanda Hotel Development Co Ltd ($169) | | -51.4% | -86.2% | 1,071.2% | -82.8% |
| Henderson Investment Ltd ($97) | -78.9% | | | 737.1% | |
| ITC Properties Group Ltd ($199) | | -95.2% | 75.7% | 678.6% | 206.4% |
| |
|---|
| Median (179 companies) | 15.4% | 13.1% | 5.2% | 4.5% | 6.4% |
|---|
| Road King Infrastructure Ltd ($1098) | | 22.6% | 11.1% | -1.7% | 34.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renhe Commercial Holdings Co Ltd ($1387) | 79.0% | 95.2% | 97.9% | 99.9% | |
| Tern Properties Co Ltd ($277) | 96.7% | 98.4% | 98.4% | 98.7% | 98.8% |
| YT Realty Group Ltd ($75) | 94.4% | 96.6% | 96.7% | 97.6% | |
| Wah Ha Realty Co Ltd ($278) | 96.3% | 96.0% | 93.2% | 95.9% | 92.9% |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| |
|---|
| Median (160 companies) | 42.1% | 41.9% | 39.3% | 38.4% | 45.1% |
|---|
| Road King Infrastructure Ltd ($1098) | 29.1% | 25.6% | 26.2% | 23.0% | 25.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinese Estates Holdings Ltd ($127) | 356.2% | 91.6% | 195.5% | 397.4% | 56.8% |
| Zall Development Group Ltd ($2098) | 105.3% | 133.1% | 143.2% | 213.9% | |
| SOHO China Ltd ($410) | 113.6% | 80.8% | 104.0% | 201.9% | |
| Beijing Properties Holdings Ltd ($925) | -606.3% | 2,162.6% | 224.3% | 186.5% | |
| Swire Properties Ltd ($1972) | 154.5% | 114.6% | 73.2% | 100.3% | |
| |
|---|
| Median (179 companies) | 29.3% | 28.5% | 27.8% | 23.5% | 31.2% |
|---|
| Road King Infrastructure Ltd ($1098) | 22.3% | 20.4% | 19.9% | 16.6% | 21.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 18.0% | 27,965.5% | 4,834.8% | |
| China Oceanwide Holdings Ltd ($715) | 0.8% | 0.3% | 2.0% | 880.6% | |
| Madex International Holdings Ltd ($231) | 174.5% | 519.7% | 205.3% | 350.6% | |
| Pacific Century Premium Developments Ltd ($432) | 2.9% | 323.1% | 351.2% | 340.6% | 570.7% |
| Hon Kwok Land Investment Co Ltd ($160) | 20.6% | 157.3% | 144.5% | 296.3% | 28.1% |
| |
|---|
| Median (179 companies) | 5.9% | 6.2% | 4.8% | 3.3% | 3.3% |
|---|
| Road King Infrastructure Ltd ($1098) | 2.8% | 0.7% | 0.2% | 0.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | |
| China Overseas Land & Investment Ltd ($688) | | 15.1% | 18.5% | 15.4% | 13.0% |
| Colour Life Services Group Co Ltd ($1778) | 44.2% | 47.9% | 29.3% | 14.5% | |
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 26.8% | 19.6% | 12.3% | 14.4% | |
| |
|---|
| Median (181 companies) | 4.0% | 4.0% | 4.1% | 2.4% | 2.7% |
|---|
| Road King Infrastructure Ltd ($1098) | 8.4% | 8.4% | 8.4% | 6.9% | 11.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shui On Land Ltd ($272) | 22.1x | 13.2x | 17.1x | 54.2x | |
| Beijing Capital Land Ltd ($2868) | 7.1x | 4.6x | 11.7x | 49.1x | 37.0x |
| Talent Property Group Ltd ($760) | | | | 43.0x | |
| Mingfa Group International Co Ltd ($846) | 2.5x | 3.0x | 6.3x | 42.9x | |
| Sunshine 100 China Holdings Ltd ($2608) | 9.9x | 12.4x | 12.9x | 42.3x | |
| |
|---|
| Median (136 companies) | 2.3x | 2.7x | 3.0x | 3.2x | 3.1x |
|---|
| Road King Infrastructure Ltd ($1098) | 3.2x | 3.2x | 4.6x | 5.3x | 2.7x |
