Kingbo Strike Ltd revenue surged on 270% while EBITDA Margin dropped on 14.1 pp from -8.3% to -22.4%
23/09/2020 • About Kingbo Strike Ltd (
$1421) • By InTwits
Kingbo Strike Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kingbo Strike Ltd is a fast growth stock: FY2020 revenue growth was 270%, 5 year revenue CAGR was 91.2% at FY2020 ROIC -29.4%
- The company operates at negative EBITDA Margin: -22.4%
- Kingbo Strike Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.3%. Average EBITDA Margin for the same period was -19.5%
- Kingbo Strike Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- In the last 5 years the company invested considerably less than D&A: 1 SGDm vs. 2 SGDm. In FY2020 this situation was still the same: CAPEX was 0 while D&A was 1
- The company has unprofitable business model: ROIC is -29.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 270%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 14.1 pp from -8.3% to -22.4% in FY2020.
Gross Margin decreased on 2.1 pp from 10.4% to 8.3% in FY2020. SG&A as a % of Revenue increased on 2.9 pp from 5.5% to 8.4% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2019 at 5.5%.
Net Income margin dropped on 13.9 pp from -10.9% to -24.8% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Kingbo Strike Ltd had CAPEX/Revenue of 0.020%. CAPEX/Revenue decreased slightly on 0.77 pp from 0.79% in FY2017 to 0.020% in FY2020. For the last three years the average CAPEX/Revenue was 0.18%. CAPEX as a % of Revenue followed a declining trend at -0.24 pp per annum in FY2016-FY2020.
Inventories as a % of Revenue showed almost no change at 0.018% in FY2020.
Return on investment
The company operates at negative ROIC (-29.4%) and ROE (-42.5%). ROIC dropped on 20.8 pp from -8.5% to -29.4% in FY2020. ROE dropped on 29.1 pp from -13.4% to -42.5% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is -56.8x and Debt / EBITDA is . Debt surged while cash jumped on 410%.
Kingbo Strike Ltd has no short term refinancing risk: cash is higher than short term debt (6,002.1%).
Average interest expence paid by the company was 2.1% in FY2020.
Management team
At the end of financial year the company had 3.1% shares owned by insiders. Insider ownership didn't change in 2020.
The company has 14 employees. The number of employees dropped on 48.1%. Average revenue per employee in FY2020 was 21,609,429 SGD and it surged on 614%.
Financial and operational results
FY ended 30/06/2020
Kingbo Strike Ltd ($1421) key annual financial indicators| mln. SGD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 21.5 | 57.6 | 68.3 | 81.7 | 302.5 | 270.3% |
| Gross Profit | 3.0 | 19.3 | 5.4 | 8.5 | 25.1 | 194.9% |
| SG&A | 2.0 | 5.0 | 4.5 | 4.5 | 25.4 | 460.6% |
| EBITDA | 0.3 | -28.9 | -0.5 | -6.7 | -67.6 | |
| EBIT | | -29.1 | -0.8 | -7.0 | -68.8 | |
| Interest expence | | 2.2 | 0.0 | | 0.1 | |
| Tax | | 4.1 | 1.0 | 1.7 | 4.0 | 143.7% |
| Net Income | 4.0 | -39.0 | -1.8 | -8.9 | -74.9 | |
| Stock Based Compensation | | 1.4 | | | | |
Balance Sheet
|
|---|
| Cash | 12.7 | 17.2 | 14.7 | 17.0 | 86.7 | 410.4% |
| Inventory | | 0.0 | 0.0 | 0.0 | 0.1 | 270.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 1.4 | |
| Long Term Debt | 6.8 | 0.0 | 0.0 | 0.0 | 1.0 | |
Cash flow
|
|---|
| Capex | 0.2 | 0.5 | 0.1 | 0.3 | 0.1 | -83.1% |
Ratios
|
|---|
| Revenue growth | 81.8% | 168.1% | 18.5% | 19.6% | 270.3% | |
| EBITDA growth | -88.2% | -9,567.2% | -98.1% | 1,132.6% | 903.0% | |
|
|---|
| Gross Margin | 14.1% | 33.4% | 8.0% | 10.4% | 8.3% | -2.1% |
| EBITDA Margin | 1.4% | -50.1% | -0.8% | -8.3% | -22.4% | -14.1% |
| EBIT Margin | | -50.4% | -1.1% | -8.6% | -22.7% | -14.2% |
| SG&A, % of revenue | 9.2% | 8.7% | 6.6% | 5.5% | 8.4% | 2.9% |
| SBC, % of revenue | | 2.4% | | | |
| Net Income Margin | 18.5% | -67.6% | -2.7% | -10.9% | -24.8% | -13.9% |
| CAPEX, % of revenue | 1.0% | 0.8% | 0.1% | 0.4% | 0.0% | -0.4% |
|
|---|
| ROIC | 0.3% | -34.4% | -1.0% | -8.5% | -29.4% | -20.8% |
| ROE | 7.0% | -52.9% | -2.9% | -13.4% | -42.5% | -29.1% |
| Net Debt/EBITDA | -19.2x | | | | |
| Interest expence / Average debt | | 5,037.6% | | | 2.1% | |
People
|
|---|
| Insider ownership | | 3.1% | 3.1% | 3.1% | 3.1% | 0.0% |
| Employees | | 173 | 106 | 27 | 14 | -48.1% |
| Revenue/Employee, th. SGD | | 333 | 645 | 3,026 | 21,609 | 614.2% |
Peers in Engineering&Construction
Below you can find Kingbo Strike 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | -19.2% | -62.0% | -21.4% | 177.0% | - |
| Vision Fame International Holding Ltd ($1315) | 40.9% | -39.8% | -19.8% | 2.3% | - |
| |
|---|
| Median (2 companies) | 6.1% | -50.9% | -20.6% | 89.7% | - |
|---|
| Kingbo Strike Ltd ($1421) | - | 168.1% | 18.5% | 19.6% | 270.3% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | 25.9% | 28.4% | 9.7% | 17.1% | - |
| Vision Fame International Holding Ltd ($1315) | 3.0% | 4.2% | 5.7% | 4.7% | - |
| |
|---|
| Median (2 companies) | 12.9% | 16.3% | 7.7% | 10.9% | - |
|---|
| Kingbo Strike Ltd ($1421) | 14.1% | 33.4% | 8.0% | 10.4% | 8.3% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | 15.7% | -27.3% | -50.2% | 0.3% | - |
| Vision Fame International Holding Ltd ($1315) | 0.7% | -0.1% | -0.6% | -10.7% | - |
| |
|---|
| Median (2 companies) | 5.4% | -13.7% | -25.4% | -5.2% | - |
|---|
| Kingbo Strike Ltd ($1421) | 1.4% | -50.1% | -0.8% | -8.3% | -22.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Vision Fame International Holding Ltd ($1315) | 0.1% | 2.7% | 5.1% | 4.1% | - |
| KSL Holdings Ltd ($8170) | 0.4% | 3.8% | 0.1% | 1.1% | - |
| |
|---|
| Median (2 companies) | 2.4% | 3.2% | 2.6% | 2.6% | - |
|---|
| Kingbo Strike Ltd ($1421) | 1.0% | 0.8% | 0.1% | 0.4% | 0.0% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | 16.9% | -13.9% | -22.8% | -1.7% | - |
| Vision Fame International Holding Ltd ($1315) | 2.5% | -1.4% | -3.1% | -25.6% | - |
| |
|---|
| Median (2 companies) | 2.8% | -7.6% | -12.9% | -13.6% | - |
|---|
| Kingbo Strike Ltd ($1421) | 0.3% | -34.4% | -1.0% | -8.5% | -29.4% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KSL Holdings Ltd ($8170) | -5.3x | - | - | -193.3x | - |
| |
|---|
| Median (1 company) | 0.9x | - | - | -193.3x | - |
|---|
