Kingdom Holding Co Ltd reports 44.9% Net Income decline in 2016 and 16.5% Revenue decline
17/03/2017 • About Kingdom Holding Co Ltd (
$528) • By InTwits
Kingdom Holding Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is declining: in FY2016 vs. 23.0% in FY2015 vs. 26.3% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kingdom Holding Co Ltd ($528) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 719 | 762 | 914 | 1,025 | 856 | -16.5% |
| Gross Profit | 209 | 207 | 245 | 264 | | -100.0% |
| SG&A | 74 | 74 | 86 | 94 | | -100.0% |
| EBITDA | 189 | 193 | 227 | 236 | | -100.0% |
| Net Income | 94 | 100 | 110 | 120 | 66 | -44.9% |
Balance Sheet
|
|---|
| Cash | 164 | 202 | 217 | 237 | | -100.0% |
| Short Term Debt | 216 | 189 | 231 | 368 | | -100.0% |
| Long Term Debt | 0 | 50 | 50 | 0 | | |
Cash flow
|
|---|
| Capex | 61 | 143 | 100 | 58 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 1.1% | 6.0% | 20.0% | 12.2% | -16.5% | |
| EBITDA growth | -9.1% | 1.9% | 17.7% | 3.9% | | |
| Gross Margin | 29.1% | 27.2% | 26.8% | 25.8% | | -25.8% |
| EBITDA Margin | 26.3% | 25.3% | 24.8% | 23.0% | 0.0% | -23.0% |
| Net Income Margin | 13.1% | 13.2% | 12.1% | 11.7% | 7.7% | -4.0% |
| SG&A, % of revenue | 10.3% | 9.7% | 9.4% | 9.2% | | -9.2% |
| CAPEX, % of revenue | 8.4% | 18.8% | 10.9% | 5.6% | | -5.6% |
| ROIC | 13.8% | 12.7% | 13.8% | 12.7% | | -12.7% |
| ROE | 11.9% | 11.7% | 11.9% | 12.0% | | -12.0% |
| Net Debt/EBITDA | 0.3x | 0.2x | 0.3x | 0.6x | | -0.6x |
Revenue and profitability
Kingdom Holding Co Ltd's Revenue dropped on 16.5%.
Net Income marign decreased on 4.0 pp from 11.7% to 7.7% in FY2016.
Appendix 1: Peers in Textiles
Below we provide Kingdom Holding Co Ltd benchmarking against other companies in Textiles 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 |
|---|
| Ping Shan Tea Group Ltd ($364) | -25.9% | 63.7% | -45.7% | 71.6% | |
| China Weaving Materials Holdings Ltd ($3778) | -15.4% | -4.2% | -3.8% | 53.9% | |
| Easyknit Enterprises Holdings Ltd ($616) | 9.6% | 10.2% | 7.3% | 22.3% | |
| Kam Hing International Holdings Ltd ($2307) | 0.9% | -4.3% | 1.6% | 4.2% | |
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | | 58.8% | -8.6% | 1.8% | -13.6% |
| |
|---|
| Median (21 companies) | 0.5% | -4.3% | -8.6% | -6.1% | 0.2% |
|---|
| Kingdom Holding Co Ltd ($528) | | 6.0% | 20.0% | 12.2% | -16.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 9.4% | 11.8% | 18.0% | 81.8% | 65.1% |
| TAI Ping Carpet International Ltd ($146) | 41.0% | 45.4% | 46.7% | 46.6% | |
| Texwinca Holdings Ltd ($321) | 29.6% | 30.9% | 33.3% | 34.1% | 34.0% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 4.9% | 7.3% | 24.9% | 28.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 31.1% | 32.5% | 32.5% | 28.3% | |
| |
|---|
| Median (20 companies) | 17.1% | 16.6% | 14.4% | 16.3% | 24.7% |
|---|
| Kingdom Holding Co Ltd ($528) | 29.1% | 27.2% | 26.8% | 25.8% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Weiqiao Textile Co ($2698) | 17.5% | 20.2% | 21.4% | 30.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 28.1% | 28.7% | 30.2% | 23.4% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 2.5% | 5.1% | 17.5% | 18.9% | |
| Pacific Textiles Holdings Ltd ($1382) | 19.1% | 19.0% | 19.5% | 18.4% | 19.0% |
| Ping Shan Tea Group Ltd ($364) | 11.2% | | 39.3% | 18.1% | |
| |
|---|
| Median (20 companies) | 11.2% | 10.0% | 11.7% | 10.1% | 15.8% |
|---|
| Kingdom Holding Co Ltd ($528) | 26.3% | 25.3% | 24.8% | 23.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 1.0% | 1.9% | 3.9% | 105.3% | 8.3% |
| Hua Lien International Holding Co Ltd ($969) | 19.7% | 40.5% | 79.6% | 58.1% | |
| Kam Hing International Holdings Ltd ($2307) | 10.6% | 10.5% | 7.6% | 8.3% | |
| TAI Ping Carpet International Ltd ($146) | 8.2% | 10.1% | 6.9% | 7.4% | |
| Wang Tai Holdings Ltd ($1400) | 34.1% | 18.8% | 7.5% | 7.3% | |
| |
|---|
| Median (20 companies) | 2.6% | 1.8% | 3.9% | 4.1% | 5.1% |
|---|
| Kingdom Holding Co Ltd ($528) | 8.4% | 18.8% | 10.9% | 5.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 23.7% | 26.4% | 31.6% | 25.9% | 26.6% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 6.2% | 13.2% | 15.4% | 19.6% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 22.3% | 20.1% | 17.6% | 11.0% | |
| Texwinca Holdings Ltd ($321) | 8.3% | 5.3% | 5.5% | 8.1% | 14.9% |
| Easyknit Enterprises Holdings Ltd ($616) | 22.2% | 21.3% | 16.1% | 7.7% | |
| |
|---|
| Median (21 companies) | 5.2% | 5.3% | 4.0% | 4.2% | 4.2% |
|---|
| Kingdom Holding Co Ltd ($528) | 13.8% | 12.7% | 13.8% | 12.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 3.6x | 3.0x | 5.3x | 5.5x | |
| Silverman Holdings Ltd ($1616) | 1.5x | 2.5x | 2.0x | 3.2x | |
| Wang Tai Holdings Ltd ($1400) | 3.2x | 1.9x | 1.8x | 2.7x | |
| Kam Hing International Holdings Ltd ($2307) | 2.5x | 2.5x | 2.8x | 2.6x | |
| Victory City International Holdings Ltd ($539) | 1.5x | 2.0x | 3.2x | 2.5x | 3.3x |
| |
|---|
| Median (14 companies) | 1.5x | 1.9x | 1.0x | 0.1x | 1.4x |
|---|
| Kingdom Holding Co Ltd ($528) | 0.3x | 0.2x | 0.3x | 0.6x | |
