Kingboard Chemical Holdings Ltd reports 205% Net Income growth and 9.3% Revenue growth
24/03/2017 • About Kingboard Chemical Holdings Ltd (
$148) • By InTwits
Kingboard Chemical Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with average profitability: ROIC is at 11.5%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kingboard Chemical Holdings Ltd ($148) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 37,290 | 35,683 | 35,906 | 32,788 | 35,830 | 9.3% |
| Gross Profit | 5,094 | 4,643 | 4,597 | 4,795 | 7,217 | 50.5% |
| SG&A | 2,391 | 2,438 | 2,628 | 2,643 | 2,764 | 4.6% |
| EBITDA | 4,916 | 6,042 | 5,644 | 4,768 | 9,192 | 92.8% |
| Net Income | 2,097 | 2,961 | 2,537 | 1,650 | 5,027 | 204.6% |
Balance Sheet
|
|---|
| Cash | 3,915 | 6,363 | 4,559 | 4,854 | 6,473 | 33.4% |
| Short Term Debt | 5,734 | 7,172 | 9,804 | 6,241 | 8,020 | 28.5% |
| Long Term Debt | 12,025 | 16,507 | 12,251 | 14,469 | 9,015 | -37.7% |
Cash flow
|
|---|
| Capex | 1,403 | 1,645 | 1,844 | 721 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.0% | -4.3% | 0.6% | -8.7% | 9.3% | |
| EBITDA growth | -11.7% | 22.9% | -6.6% | -15.5% | 92.8% | |
| Gross Margin | 13.7% | 13.0% | 12.8% | 14.6% | 20.1% | 5.5% |
| EBITDA Margin | 13.2% | 16.9% | 15.7% | 14.5% | 25.7% | 11.1% |
| Net Income Margin | 5.6% | 8.3% | 7.1% | 5.0% | 14.0% | 9.0% |
| SG&A, % of revenue | 6.4% | 6.8% | 7.3% | 8.1% | 7.7% | -0.3% |
| CAPEX, % of revenue | 3.8% | 4.6% | 5.1% | 2.2% | | -2.2% |
| ROIC | 5.0% | 6.2% | 5.0% | 3.9% | 11.5% | 7.6% |
| ROE | 7.1% | 9.1% | 7.3% | 4.7% | 13.8% | 9.1% |
| Net Debt/EBITDA | 2.8x | 2.9x | 3.1x | 3.3x | 1.1x | -2.2x |
Revenue and profitability
Kingboard Chemical Holdings Ltd's Revenue increased on 9.3%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.1 pp from 14.5% to 25.7% in FY2016.
Gross Margin increased on 5.5 pp from 14.6% to 20.1% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 9.0 pp from 5.0% to 14.0% in FY2016.
Return on investment
The company operates at good ROE (13.80%) while ROIC is low (11.52%). ROIC increased on 7.6 pp from 3.9% to 11.5% in FY2016. ROE increased on 9.1 pp from 4.7% to 13.8% in FY2016.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA dropped on 2.2x from 3.3x to 1.1x in FY2016. Debt dropped on 17.8% while cash jumped on 33.4%.
Appendix 1: Peers in Chemicals
Below we provide Kingboard Chemical Holdings Ltd benchmarking against other companies in Chemicals 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 |
|---|
| Bestway International Holdings Ltd ($718) | | -62.1% | 330.3% | 238.4% | 14,591.4% |
| China First Chemical Holdings Ltd ($2121) | | -6.8% | -18.0% | 72.5% | 5.3% |
| Strong Petrochemical Holdings Ltd ($852) | | 87.9% | -60.8% | 42.3% | -26.0% |
| Ko Yo Chemical Group Ltd ($827) | -5.6% | -0.6% | 2.3% | 40.8% | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | | 63.5% | -7.7% | 36.6% | 33.8% |
| |
|---|
| Median (32 companies) | -0.6% | 9.4% | 2.3% | -2.4% | 5.1% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | | -4.3% | 0.6% | -8.7% | 9.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 70.5% | 69.1% | 70.8% | 69.9% | 68.9% |
| Zhejiang Changan Renheng Technology Co Ltd ($8139) | 50.4% | 50.1% | 46.9% | 49.9% | |
| China Flavors & Fragrances Co Ltd ($3318) | 46.8% | 48.6% | 47.8% | 48.9% | |
| Bestway International Holdings Ltd ($718) | 5.1% | 4.6% | 8.6% | 40.4% | 7.1% |
| Bracell Ltd ($1768) | 30.5% | 37.3% | 37.3% | 38.4% | |
| |
|---|
| Median (32 companies) | 22.0% | 18.8% | 19.2% | 20.5% | 17.8% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 13.7% | 13.0% | 12.8% | 14.6% | 20.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 63.8% | 59.1% | 60.0% | 58.3% | 51.2% |
| Bracell Ltd ($1768) | 22.3% | 30.8% | 38.2% | 35.9% | |
| Yingde Gases Group Co Ltd ($2168) | 29.4% | 29.8% | 32.3% | 33.4% | |
| Tiande Chemical Holdings Ltd ($609) | 25.5% | 27.3% | 25.1% | 27.8% | |
| Century Sunshine Group Holdings Ltd ($509) | 24.2% | 28.1% | 27.6% | 26.1% | |
| |
|---|
| Median (32 companies) | 15.8% | 12.7% | 11.1% | 11.8% | 11.0% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 13.2% | 16.9% | 15.7% | 14.5% | 25.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Landing International Development Ltd ($582) | 7.2% | 29.6% | 419.5% | 247.4% | |
| China Zenith Chemical Group Ltd ($362) | 147.3% | 55.7% | 67.4% | 152.2% | 191.4% |
| Smartac Group China Holdings Ltd ($395) | 14.0% | 4.7% | 49.3% | 52.4% | |
| China Flavors & Fragrances Co Ltd ($3318) | 15.8% | 20.1% | 42.4% | 35.8% | |
| Zhejiang Changan Renheng Technology Co Ltd ($8139) | 13.6% | 21.1% | 13.5% | 29.7% | |
| |
|---|
| Median (32 companies) | 9.6% | 9.2% | 5.9% | 8.2% | 2.4% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 3.8% | 4.6% | 5.1% | 2.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huabao International Holdings Ltd ($336) | 28.7% | 25.2% | 26.2% | 23.3% | 17.1% |
| Tiande Chemical Holdings Ltd ($609) | 26.2% | 29.4% | 20.7% | 20.6% | |
| Sinopec Shanghai Petrochemical Co Ltd ($338) | -6.9% | 8.1% | -2.4% | 16.5% | 26.3% |
| Century Sunshine Group Holdings Ltd ($509) | 11.3% | 15.9% | 16.4% | 13.3% | |
| Infinity Chemical Holdings Co Ltd ($640) | 11.1% | 10.2% | 8.8% | 12.7% | 7.4% |
| |
|---|
| Median (32 companies) | 7.3% | 8.5% | 5.9% | 5.2% | 5.8% |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 5.0% | 6.2% | 5.0% | 3.9% | 11.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ko Yo Chemical Group Ltd ($827) | 8.8x | 22.0x | | 141.5x | |
| China Sanjiang Fine Chemicals Co Ltd ($2198) | 2.2x | 4.6x | 18.1x | 13.5x | |
| Sinofert Holdings Ltd ($297) | 2.9x | 32.4x | 5.0x | 8.4x | |
| Ngai Hing Hong Co Ltd ($1047) | 11.7x | 5.3x | 5.4x | 5.3x | 7.1x |
| China XLX Fertiliser Ltd ($1866) | 2.6x | 5.1x | 5.8x | 5.1x | |
| |
|---|
| Median (27 companies) | 1.2x | 2.1x | 1.4x | 1.7x | 0.3x |
|---|
| Kingboard Chemical Holdings Ltd ($148) | 2.8x | 2.9x | 3.1x | 3.3x | 1.1x |
