Inch Kenneth Kajang Rubber CAPEX jumped on 1,298% in 2016 and Revenue increased slightly on 1.6%
28 Feb 2017 • About Inch Kenneth Kajang Rubber (
$IKK) • By InTwits
Inch Kenneth Kajang Rubber reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Inch Kenneth Kajang Rubber doesn't have a profitable business model yet: FY2016 ROIC is -1.0%
- The company operates at negative EBITDA Margin: -55.7%
- Inch Kenneth Kajang Rubber motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -69.3% for the sames years0
- Inch Kenneth Kajang Rubber has high CAPEX intensity: 5 year average CAPEX/Revenue was 180.4%. At the same time it's a lot of higher than industry average of 32.4%.
- CAPEX is quite volatile: 78.9 in FY2016, 5.6 in FY2015, 3.0 in FY2014, 0.76 in FY2013, 12.2 in FY2012
- The company has unprofitable business model: ROIC is at -1.0%
- It operates with high leverage: Net Debt/EBITDA is 8.7x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Inch Kenneth Kajang Rubber ($IKK) key annual financial indicators
| mln. MYR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16.408 | 14.073 | 23.639 | 10.289 | 10.455 | 1.6% |
| Gross Profit | 7.628 | 3.447 | 5.119 | 5.321 | | -100.0% |
| SG&A | 13.601 | 16.666 | 17.070 | 17.131 | | -100.0% |
| EBITDA | -7.966 | -15.779 | -12.733 | -9.557 | -5.823 | -39.1% |
| Net Income | 4.430 | -28.497 | -7.127 | -1.941 | -3.056 | 57.4% |
Balance Sheet
|
|---|
| Cash | 34.152 | 28.593 | 43.738 | 26.755 | 27.770 | 3.8% |
| Short Term Debt | 0.024 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 12.167 | 0.764 | 3.037 | 5.646 | 78.923 | 1,297.9% |
Ratios
|
|---|
| Revenue growth | -18.7% | -14.2% | 68.0% | -56.5% | 1.6% | |
| EBITDA growth | 236.3% | 98.1% | -19.3% | -24.9% | -39.1% | |
| Gross Margin | 46.5% | 24.5% | 21.7% | 51.7% | | -51.7% |
| EBITDA Margin | -48.5% | -112.1% | -53.9% | -92.9% | -55.7% | 37.2% |
| Net Income Margin | 27.0% | -202.5% | -30.1% | -18.9% | -29.2% | -10.4% |
| SG&A, % of revenue | 82.9% | 118.4% | 72.2% | 166.5% | | -166.5% |
| CAPEX, % of revenue | 74.2% | 5.4% | 12.8% | 54.9% | 754.9% | 700.0% |
| ROIC | -1.3% | -2.5% | -2.0% | -1.6% | -1.0% | 0.6% |
| ROE | 0.6% | -3.9% | -1.0% | -0.3% | -0.5% | -0.2% |
Revenue and profitability
Inch Kenneth Kajang Rubber's Revenue increased slightly on 1.6% in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 37.2 pp from -92.9% to -55.7% in FY2016.
Net Income marign dropped on 10.4 pp from -18.9% to -29.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 755%. CAPEX/Revenue surged on 749 pp from 5.4% in FY2013 to 755% in FY2016. Average CAPEX/Revenue for the last three years was 274%.
Return on investment
The company operates at negative ROIC (-0.97%) and ROE (-0.48%). ROIC increased slightly on 0.63 pp from -1.6% to -0.97% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
The company has no debt. Cash increased on 3.8% in FY2016.
Appendix 1: Peers in Construction & Materials
Below you can find Inch Kenneth Kajang Rubber benchmarking vs. other companies in Construction & Materials 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 |
|---|
| Kingspan Group ($KGP) | | 9.1% | 6.4% | 46.7% | 12.0% |
| Accsys Technologies ($AXS) | | 25.5% | 78.0% | 37.5% | 14.5% |
| Billington Hldgs ($BILN) | -34.0% | 8.4% | 14.5% | 25.8% | |
| Crh ($CRH) | | -0.3% | 4.9% | 25.0% | 14.7% |
| Clarke(T.) ($CTO) | 5.5% | 12.0% | -4.2% | 16.6% | |
| |
|---|
| Median (25 companies) | 0.0% | 5.6% | 8.8% | 1.7% | 7.8% |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | | -14.2% | 68.0% | -56.5% | 1.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Swp Group ($SWP) | 43.0% | 48.1% | 39.2% | 49.7% | |
| Heath(Samuel)& Sons ($HSM) | 49.5% | 47.3% | 48.6% | 47.6% | 48.1% |
| James Halstead ($JHD) | 41.2% | 41.6% | 41.0% | 41.7% | 42.4% |
| Michelmersh Brick Hldgs ($MBH) | 35.3% | 28.4% | 31.1% | 38.2% | |
| Billington Hldgs ($BILN) | 41.1% | 41.7% | 38.8% | 36.3% | |
| |
|---|
| Median (23 companies) | 23.6% | 24.9% | 27.0% | 29.1% | 32.6% |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 46.5% | 24.5% | 21.7% | 51.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucky Cement Ltd ($LKCS) | 31.5% | 26.8% | 24.4% | 26.5% | 30.4% |
| Steppe Cement ($STCM) | 20.8% | 23.2% | 14.3% | 24.7% | |
| James Halstead ($JHD) | 20.2% | 19.8% | 20.1% | 20.9% | 21.6% |
| Michelmersh Brick Hldgs ($MBH) | 10.6% | 7.9% | 14.1% | 20.3% | |
| LSR Group OJSC ($LSRG) | 20.2% | 19.5% | 22.9% | 19.3% | |
| |
|---|
| Median (25 companies) | 8.7% | 7.4% | 9.7% | 9.7% | 11.7% |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | -48.5% | -112.1% | -53.9% | -92.9% | -55.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucky Cement Ltd ($LKCS) | 3.2% | 5.2% | 6.9% | 12.0% | 8.9% |
| Billington Hldgs ($BILN) | 1.0% | 1.1% | 2.9% | 10.8% | |
| Low & Bonar ($BD46) | 3.5% | 2.8% | 4.6% | 9.1% | 4.7% |
| Superglass Hldgs ($SPGH) | 12.9% | 14.2% | 3.4% | 7.9% | |
| Swp Group ($SWP) | 0.9% | 2.5% | 8.5% | 7.4% | |
| |
|---|
| Median (25 companies) | 2.1% | 2.4% | 2.4% | 2.2% | 3.1% |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 74.2% | 5.4% | 12.8% | 54.9% | 754.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| James Halstead ($JHD) | 49.3% | 46.2% | 46.7% | 45.3% | 47.1% |
| Alumasc Group ($ALU) | 6.5% | 17.5% | 22.6% | 36.0% | 47.8% |
| Heath(Samuel)& Sons ($HSM) | 9.7% | 8.7% | 19.7% | 32.0% | 89.2% |
| Aukett Swanke Group ($AUK) | 2.7% | 11.4% | 27.3% | 31.6% | 9.6% |
| Lucky Cement Ltd ($LKCS) | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% |
| |
|---|
| Median (25 companies) | 4.8% | 7.5% | 7.4% | 8.0% | 11.4% |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | -1.3% | -2.5% | -2.0% | -1.6% | -1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mountfield Group ($MOGP) | 26.3x | 4.8x | 52.0x | 18.8x | |
| Asia Cement Corp ($ASCD) | 7.8x | 6.9x | 6.8x | 8.6x | |
| Crh ($CRH) | 2.0x | 3.6x | 1.6x | 3.1x | 1.7x |
| Low & Bonar ($BD46) | 2.7x | 2.1x | 2.1x | 2.4x | 2.1x |
| Saint-Gobain(Compagnie De) ($COD) | 2.1x | 2.0x | 2.1x | 1.4x | 1.5x |
| |
|---|
| Median (22 companies) | 1.6x | 0.7x | 0.5x | -0.1x | -0.8x |
|---|
