Trending stocks
$700  
$992  
$941  
$13  
$763  

Looking for growth? Don't miss Livzon Pharmaceutical Group Inc with its track record of fast growth

31/03/2017 • About Livzon Pharmaceutical Group Inc ($1513) • By InTwits

Pay attention to Livzon Pharmaceutical Group Inc as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Livzon Pharmaceutical Group Inc showed fast growth in the last financial year. Livzon Pharmaceutical Group Inc's revenue surged on 15.2% in FY2016. In addition to revenue Livzon Pharmaceutical Group Inc also keeps delivering EBITDA growth. It was 21.3% in FY2016

In the last 3 years Livzon Pharmaceutical Group Inc showed fast revenue growth of 18.2% from 2013 to 2016 annualy. EBITDA surged on 18.9% from 2013 to 2016 annualy.

Livzon Pharmaceutical Group Inc ($1513) financials for the last 5 years

mln. CNY 2012 2013 2014 2015 2016
Revenue3,8894,5605,4756,5407,531
Revenue growth, %17.3%20.1%19.4%15.2%
Gross margin, %59.6%62.8%60.9%60.6%63.5%
SG&A, %46.1%45.3%44.6%44.1%45.7%
EBITDA6497408441,0241,243
EBITDA growth, %13.9%14.1%21.3%21.3%
EBITDA margin, %16.7%16.2%15.4%15.7%16.5%
Net Income442488516623784
Net Income margin, % 11.4%10.7%9.42%9.52%10.4%
 
CAPEX762920666477368
CAPEX/Revenue, %19.6%20.2%12.2%7.30%4.89%
Debt1,2211,4171,495950675
Cash1,1797517097672,062
Net Debt/EBITDA0.1x0.9x0.9x0.2x-1.1x
 
ROIC, %12.0%11.9%11.1%12.4%12.7%
ROE, %15.1%15.3%14.7%15.5%14.5%

Profitability and return on investment


EBITDA growth was partly attributed to margin expansion. EBITDA margin increased on 0.800 pp from 15.7% to 16.5% in 2016. If we look for the longer period EBITDA margin increased slightly on 0.300 pp from 16.2% in 2013 to 16.5% in 2016.

Livzon Pharmaceutical Group Inc shows attractive ROIC at 12.7% for the last 12 months which assumes stable development model. Three years ago it was a bit lower at 11.9%. Average ROIC for the last three years was 12.1%.

Net Income margin increased on 0.900 pp from 9.50% to 10.4% in 2016. If we look for the longer period Net Income margin decreased slightly on 0.300 pp from 10.7% in 2013 to 10.4% in 2016.

Livzon Pharmaceutical Group Inc operates at ROE of 14.5%. It's average ROE for the last three years was 14.9%.

Capital expenditures (CAPEX)


In FY2016 Livzon Pharmaceutical Group Inc had CAPEX/Revenue of 4.89%. CAPEX/Revenue dropped on 15.3 pp from 20.2% in 2013 to 4.89% in 2016. Average CAPEX/Revenue for the last three years was 8.11%.

Leverage (Debt)


Having such a fast growth profile the company keeps negative net debt at -1.1x Net Debt/EBITDA. In the last 3 years leverage dropped on 2.02x from 0.90x in 2013 to -1.12x in 2016.

Peers in Pharmaceuticals


Below you can find Livzon Pharmaceutical Group Inc benchmarking vs. other companies in Pharmaceuticals 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, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
China Health Group Inc ($8225)-48.0%-60.1%244.1%-1.2%
Wai Yuen Tong Medicine Holdings Ltd ($897)45.9%-10.5%105.6%40.9%
Oriental Unicorn Agricultural Group Ltd ($8120)-78.1%16.8%100.8%6.9%
China Traditional Chinese Medicine Co Ltd ($570)35.2%90.0%40.0%76.1%
RM Group Holdings Ltd ($8185)4.6%-16.0%34.2%-16.6%
 
Median (42 companies)13.3%13.5%14.8%3.3%8.7%
Livzon Pharmaceutical Group Inc ($1513)17.3%20.1%19.4%15.2%


Top companies by Gross margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Luye Pharma Group Ltd ($2186)83.5%83.6%81.0%81.4%
Consun Pharmaceutical Group Ltd ($1681)75.7%79.1%78.3%80.7%
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049)82.0%81.5%80.9%79.9%
RM Group Holdings Ltd ($8185)79.6%78.8%76.6%77.7%77.4%
Sino Biopharmaceutical Ltd ($1177)78.5%77.5%76.4%77.7%79.2%
 
Median (41 companies)39.2%37.8%49.1%49.9%49.9%
Livzon Pharmaceutical Group Inc ($1513)59.6%62.8%60.9%60.6%63.5%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Northeast Tiger Pharmaceutical Corp Ltd ($8197)193.8%205,840.0%-15,344.8%49,650.0%26.0%
Sihuan Pharmaceutical Holdings Group Ltd ($460)38.8%65.4%70.9%93.3%
Hua Han Bio-Pharmaceutical Holdings Ltd ($587)60.6%21.0%28.8%61.1%
U-Home Group Holdings Ltd ($2327)9.8%-16.6%-46.7%51.7%
Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138)41.3%45.4%47.5%49.1%50.9%
 
Median (42 companies)20.3%20.2%21.4%20.0%10.6%
Livzon Pharmaceutical Group Inc ($1513)16.7%16.2%15.4%15.7%16.5%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Hao Wen Holdings Ltd ($8019)30.0%2.3%38.2%44.8%
Hua Han Bio-Pharmaceutical Holdings Ltd ($587)0.9%1.4%7.6%40.5%
Lee's Pharmaceutical Holdings Ltd ($950)18.6%20.9%7.1%26.1%
Tianda Pharmaceuticals Ltd ($455)6.0%3.9%10.5%24.4%22.9%
Lijun International Pharmaceutical Holding Co Ltd ($2005)16.8%52.4%39.6%18.7%
 
Median (41 companies)8.0%7.5%7.2%4.4%2.8%
Livzon Pharmaceutical Group Inc ($1513)19.6%20.2%12.2%7.3%4.9%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Sino Biopharmaceutical Ltd ($1177)26.2%26.8%26.5%26.2%24.3%
Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138)25.3%27.5%23.8%25.9%25.1%
Sihuan Pharmaceutical Holdings Group Ltd ($460)13.7%18.3%22.0%25.4%
Dawnrays Pharmaceutical Holdings Ltd ($2348)12.6%14.0%17.8%23.5%
Lee's Pharmaceutical Holdings Ltd ($950)26.1%22.0%22.4%22.7%
 
Median (43 companies)12.4%9.3%11.1%10.0%6.4%
Livzon Pharmaceutical Group Inc ($1513)12.0%11.9%11.1%12.4%12.7%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Northeast Tiger Pharmaceutical Corp Ltd ($8197)2.3x3.7x22.2x-5.1x
U-Home Group Holdings Ltd ($2327)10.1x9.9x
Lansen Pharmaceutical Holdings Ltd ($503)1.7x2.8x3.4x4.7x
China Grand Pharmaceutical and Healthcare Holdings Ltd ($512)5.4x4.0x3.4x4.3x
United Laboratories International Holdings Ltd/The ($3933)6.5x4.6x4.2x4.0x
 
Median (35 companies)-0.4x-0.4x-0.6x-0.4x-1.3x
Livzon Pharmaceutical Group Inc ($1513)0.1x0.9x0.9x0.2x-1.1x