Wai Kee Holdings Ltd Net Income surged on 59.0% in 2016 and Revenue increased on 6.1%
13/03/2017 • About Wai Kee Holdings Ltd (
$610) • By InTwits
Wai Kee Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 5.4% in FY2016 vs. 4.4% in FY2015 vs. -0.6% in FY2012
- EBITDA Margin is quite volatile: 5.4% in FY2016, 4.4% in FY2015, 3.4% in FY2014, 1.9% in FY2013, -0.6% in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wai Kee Holdings Ltd ($610) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,418 | 2,546 | 3,833 | 5,019 | 5,327 | 6.1% |
| Gross Profit | 194 | 240 | 377 | 441 | 573 | 29.7% |
| SG&A | 238 | 266 | 334 | 353 | 424 | 20.3% |
| EBITDA | -15 | 49 | 129 | 219 | 287 | 31.4% |
| Net Income | 327 | 440 | 543 | 421 | 669 | 59.0% |
Balance Sheet
|
|---|
| Cash | 175 | 341 | 453 | 882 | 986 | 11.9% |
| Short Term Debt | 219 | 224 | 283 | 325 | 301 | -7.5% |
| Long Term Debt | 0 | 15 | 12 | 169 | 690 | 308.9% |
Cash flow
|
|---|
| Capex | 36 | 53 | 100 | 232 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 93.7% | 5.3% | 50.5% | 31.0% | 6.1% | |
| EBITDA growth | -124.3% | -429.7% | 164.6% | 68.9% | 31.4% | |
| Gross Margin | 8.0% | 9.4% | 9.8% | 8.8% | 10.8% | 2.0% |
| EBITDA Margin | -0.6% | 1.9% | 3.4% | 4.4% | 5.4% | 1.0% |
| Net Income Margin | 13.5% | 17.3% | 14.2% | 8.4% | 12.6% | 4.2% |
| SG&A, % of revenue | 9.8% | 10.5% | 8.7% | 7.0% | 8.0% | 0.9% |
| CAPEX, % of revenue | 1.5% | 2.1% | 2.6% | 4.6% | | -4.6% |
| ROIC | -1.0% | 0.1% | 1.4% | 2.7% | 3.1% | 0.4% |
| ROE | 7.1% | 8.8% | 10.0% | 7.4% | 11.5% | 4.1% |
| Net Debt/EBITDA | | -2.1x | -1.2x | -1.8x | 0.0x | 1.8x |
Revenue and profitability
The company's Revenue increased on 6.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.93 pp from 36.4% to 37.3% in FY2016.
Gross Margin increased slightly on 2.0 pp from 8.8% to 10.8% in FY2016. SG&A as a % of Revenue increased slightly on 0.94 pp from 7.0% to 8.0% in FY2016.
Net Income marign increased on 4.2 pp from 8.4% to 12.6% in FY2016.
Return on investment
The company operates at low ROIC (3.07%) and ROE (11.49%). ROIC showed almost no change in FY2016. ROE increased on 4.1 pp from 7.4% to 11.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 3.5x. Net Debt / EBITDA jumped on 1.8x from -1.8x to 0.015x in FY2016. Debt surged on 101% while cash surged on 11.9%.
Appendix 1: Peers in Engineering&Construction
Below you can find Wai Kee Holdings Ltd benchmarking vs. other companies in Engineering&Construction 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 |
|---|
| 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) | 17.5% | 24.8% | 20.8% | 10.3% | 2.7% |
|---|
| Wai Kee Holdings Ltd ($610) | | 5.3% | 50.5% | 31.0% | 6.1% |
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) | 17.5% | 16.9% | 16.1% | 16.3% | 12.0% |
|---|
| Wai Kee Holdings Ltd ($610) | 8.0% | 9.4% | 9.8% | 8.8% | 10.8% |
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) | 10.0% | 11.2% | 9.7% | 9.0% | 1.9% |
|---|
| Wai Kee Holdings Ltd ($610) | -0.6% | 1.9% | 3.4% | 4.4% | 5.4% |
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% | 1.7% | 2.0% | 1.7% |
|---|
| Wai Kee Holdings Ltd ($610) | 1.5% | 2.1% | 2.6% | 4.6% | |
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) | 6.5% | 6.1% | 5.4% | 5.6% | 1.2% |
|---|
| Wai Kee Holdings Ltd ($610) | -1.0% | 0.1% | 1.4% | 2.7% | 3.1% |
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) | 0.8x | 0.3x | 0.4x | 1.3x | -0.3x |
|---|
| Wai Kee Holdings Ltd ($610) | | -2.1x | -1.2x | -1.8x | 0.0x |
