Shin Kong Financial Hldg Co revenue growth decelerated to 6.2% in 2015 vs. 21.5% a year earliner
26 Feb 2016 • About Shin Kong Financial Hldg Co (
$SKFS) • By InTwits
Shin Kong Financial Hldg Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shin Kong Financial Hldg Co doesn't have a profitable business model yet: 2015 ROIC is 0.5%
- Shin Kong Financial Hldg Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is at 0.5%
- It operates with high leverage: Net Debt/EBITDA is 6.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shin Kong Financial Hldg Co ($SKFS) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 240,055 | 245,295 | 247,309 | 300,426 | 319,062 | 6.2% |
| Net Income | 5,493 | 10,082 | 9,986 | 6,811 | 5,780 | -15.1% |
Balance Sheet
|
|---|
| Cash | 149,616 | 152,781 | 154,540 | 175,241 | 183,383 | 4.6% |
| Short Term Debt | 412,184 | 479,783 | 507,190 | 562,599 | 577,702 | 2.7% |
| Long Term Debt | 37,391 | 36,630 | 41,181 | 37,937 | 33,741 | -11.1% |
Cash flow
|
|---|
| Capex | 527 | 1,036 | 785 | 1,141 | 2,548 | 123.4% |
Ratios
|
|---|
| Revenue growth | -5.8% | 2.2% | 0.8% | 21.5% | 6.2% | |
| Net Income Margin | 2.3% | 4.1% | 4.0% | 2.3% | 1.8% | -0.5% |
| CAPEX, % of revenue | 0.2% | 0.4% | 0.3% | 0.4% | 0.8% | 0.4% |
| ROIC | 0.6% | 0.8% | 0.8% | 0.7% | 0.5% | -0.1% |
| ROE | 7.0% | 13.3% | 10.9% | 6.4% | 5.3% | -1.2% |
Revenue and profitability
The company's Revenue increased on 6.2% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.80% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.50%.
Return on investment
The company operates at low ROIC (0.54%) and ROE (5.27%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.2 pp from 6.4% to 5.3% in 2015.
Leverage (Debt)
Debt increased slightly on 1.8% in 2015 while cash increased on 4.6% in 2015.
Appendix 1: Peers in Life Insurance
Below we provide Shin Kong Financial Hldg Co benchmarking against other companies in Life Insurance 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aviva ($AV.A) | -38.8% | 40.7% | -20.4% | 25.6% | |
| Cathay Financial Hldg Co ($CFHS) | 41.4% | -25.4% | 58.9% | 14.8% | |
| Prudential ($PRU) | -23.4% | 49.1% | -3.8% | 14.8% | |
| Standard Life ($SL.) | | 111.1% | -12.3% | -1.4% | -46.4% |
| Sagicor Financial Corp ($SFI) | -25.1% | 12.7% | -2.3% | -2.8% | |
| |
|---|
| Median (6 companies) | -24.2% | 26.7% | -3.0% | 6.7% | -21.2% |
|---|
| Shin Kong Financial Hldg Co ($SKFS) | | 2.2% | 0.8% | 21.5% | 6.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sagicor Financial Corp ($SFI) | 1.3% | 1.9% | 1.8% | 2.1% | |
| Torchmark Corp ($TMK) | 0.2% | 0.1% | 0.3% | 0.5% | 1.0% |
| Prudential ($PRU) | 0.3% | 0.3% | 0.4% | 0.3% | |
| Aviva ($AV.A) | 0.3% | 0.5% | 0.1% | 0.3% | |
| Cathay Financial Hldg Co ($CFHS) | 0.2% | 1.1% | 0.3% | 0.2% | |
| |
|---|
| Median (6 companies) | 0.2% | 0.4% | 0.3% | 0.3% | 0.5% |
|---|
| Shin Kong Financial Hldg Co ($SKFS) | 0.2% | 0.4% | 0.3% | 0.4% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Torchmark Corp ($TMK) | 5.5% | 5.4% | 4.9% | 4.6% | 4.3% |
| Cathay Financial Hldg Co ($CFHS) | 0.5% | 0.6% | 0.9% | 1.3% | |
| Aviva ($AV.A) | 0.5% | 0.4% | 0.7% | 1.0% | |
| Prudential ($PRU) | 0.8% | 1.1% | 0.6% | 0.8% | |
| Standard Life ($SL.) | 0.5% | 0.7% | 0.5% | 0.5% | 0.4% |
| |
|---|
| Median (6 companies) | 0.5% | 0.7% | 0.7% | 1.0% | 2.3% |
|---|
| Shin Kong Financial Hldg Co ($SKFS) | 0.6% | 0.8% | 0.8% | 0.7% | 0.5% |
