Shin Kong Financial Hldg Co revenue growth accelerated from 6.2% in 2015 to 10.4% in 2016
01 Mar 2017 • About Shin Kong Financial Hldg Co (
$SKFS) • By InTwits
Shin Kong Financial Hldg Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shin Kong Financial Hldg Co doesn't have a profitable business model yet: 2016 ROIC is 0.4%
- Shin Kong Financial Hldg Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shin Kong Financial Hldg Co ($SKFS) key annual financial indicators
| mln. TWD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 245,295 | 247,309 | 300,426 | 319,062 | 352,343 | 10.4% |
| Net Income | 10,082 | 9,986 | 6,811 | 5,780 | 4,810 | -16.8% |
Balance Sheet
|
|---|
| Cash | 152,781 | 154,540 | 175,241 | 183,383 | 129,456 | -29.4% |
| Short Term Debt | 479,783 | 507,190 | 562,599 | 577,702 | 575,706 | -0.3% |
| Long Term Debt | 36,630 | 41,181 | 37,937 | 33,741 | 45,803 | 35.7% |
Cash flow
|
|---|
| Capex | 1,036 | 785 | 1,141 | 2,548 | 1,386 | -45.6% |
Ratios
|
|---|
| Revenue growth | 2.2% | 0.8% | 21.5% | 6.2% | 10.4% | |
| Net Income Margin | 4.1% | 4.0% | 2.3% | 1.8% | 1.4% | -0.4% |
| CAPEX, % of revenue | 0.4% | 0.3% | 0.4% | 0.8% | 0.4% | -0.4% |
| ROIC | 0.8% | 0.8% | 0.7% | 0.5% | 0.4% | -0.2% |
| ROE | 13.3% | 10.9% | 6.4% | 5.3% | 4.2% | -1.1% |
Revenue and profitability
The company's Revenue jumped on 10.4% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 0.39%. CAPEX/Revenue showed almost no change from 2013 to 2016. It's average CAPEX/Revenue for the last three years was 0.52%.
Return on investment
The company operates at low ROIC (0.38%) and ROE (4.19%). ROIC showed almost no change in 2016. ROE decreased slightly on 1.1 pp from 5.3% to 4.2% in 2016.
Leverage (Debt)
Debt increased slightly on 1.6% in 2016 while cash dropped on 29.4% in 2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cathay Financial Hldg Co ($CFHS) | -25.4% | 58.9% | 14.8% | 9.3% | |
| Sagicor Financial Corp ($SFI) | 12.7% | -2.3% | -2.8% | 7.5% | |
| Torchmark Corp ($TMK) | | 5.1% | -4.0% | 4.0% | 4.5% |
| Prudential ($PRU) | 49.1% | -3.8% | 14.8% | -31.3% | |
| Partnership Assurance Group ($PA.) | 30.0% | -19.5% | 30.9% | -36.2% | |
| |
|---|
| Median (7 companies) | 30.0% | -3.8% | 14.8% | -31.3% | 57.6% |
|---|
| Shin Kong Financial Hldg Co ($SKFS) | | 0.8% | 21.5% | 6.2% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sagicor Financial Corp ($SFI) | 1.9% | 1.8% | 2.1% | 1.6% | |
| Torchmark Corp ($TMK) | 0.1% | 0.3% | 0.5% | 1.0% | 0.6% |
| Prudential ($PRU) | 0.3% | 0.4% | 0.3% | 0.6% | |
| Aviva ($AV.A) | 0.5% | 0.1% | 0.3% | 0.2% | |
| Cathay Financial Hldg Co ($CFHS) | 1.1% | 0.3% | 0.2% | 0.2% | |
| |
|---|
| Median (7 companies) | 0.4% | 0.3% | 0.3% | 0.2% | 0.3% |
|---|
| Shin Kong Financial Hldg Co ($SKFS) | 0.4% | 0.3% | 0.4% | 0.8% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Torchmark Corp ($TMK) | 5.4% | 4.9% | 4.6% | 4.3% | 4.2% |
| Cathay Financial Hldg Co ($CFHS) | 0.6% | 0.9% | 1.3% | 1.3% | |
| Prudential ($PRU) | 1.1% | 0.6% | 0.8% | 0.9% | |
| Aviva ($AV.A) | 0.4% | 0.7% | 1.0% | 0.6% | |
| Standard Life ($SL.) | 0.7% | 0.5% | 0.5% | 0.4% | 0.5% |
| |
|---|
| Median (7 companies) | 0.9% | 0.8% | 0.9% | 0.8% | 2.4% |
|---|
| Shin Kong Financial Hldg Co ($SKFS) | 0.8% | 0.8% | 0.7% | 0.5% | 0.4% |
