Jintian Pharmaceutical Group Ltd demonstrates fast growth in fundamentals
25/03/2015 • About Jintian Pharmaceutical Group Ltd (
$2211) • By InTwits
Jintian Pharmaceutical Group Ltd is an attractive growth stock in Retail industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Jintian Pharmaceutical Group Ltd showed growth in the last financial year. The company's revenue surged on 31.1% in FY2014. In addition to revenue Jintian Pharmaceutical Group Ltd also keeps delivering EBITDA growth. It was 30.3% in FY2014
In the longer period Jintian Pharmaceutical Group Ltd showed fast revenue growth of 43.5% from 2011 to 2014 annualy. EBITDA surged on 42.0% from 2011 to 2014 annualy.
Jintian Pharmaceutical Group Ltd ($2211) financials for the last 5 years
| mln. | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 859 | 1,474 | 2,326 | 3,323 | 4,356 |
|---|
| Revenue growth, % | | 71.7% | 57.8% | 42.9% | 31.1% |
|---|
| Gross margin, % | 27.9% | 25.7% | 23.5% | 28.2% | 29.1% |
|---|
| SG&A, % | 9.00% | 8.78% | 9.33% | 11.7% | 12.8% |
|---|
| EBITDA | 163 | 249 | 316 | 547 | 713 |
|---|
| EBITDA growth, % | | 53.2% | 26.7% | 73.3% | 30.3% |
|---|
| EBITDA margin, % | 18.9% | 16.9% | 13.6% | 16.5% | 16.4% |
|---|
| Net Income | 123 | 180 | 214 | 355 | 473 |
|---|
| Net Income margin, % | 14.3% | 12.2% | 9.19% | 10.7% | 10.9% |
|---|
| |
| CAPEX | 1 | 12 | 15 | 43 | 64 |
|---|
| CAPEX/Revenue, % | 0.120% | 0.797% | 0.625% | 1.28% | 1.48% |
|---|
| Debt | 0 | 0 | 42 | 9 | 378 |
|---|
| Cash | 107 | 713 | 456 | 1,564 | 1,349 |
|---|
| Net Debt/EBITDA | -0.7x | -2.9x | -1.3x | -2.8x | -1.4x |
|---|
| |
| ROIC, % | | 78.8% | 52.8% | 32.1% | 24.0% |
|---|
| ROE, % | | 65.5% | 46.9% | 24.5% | 19.1% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 16.5% in FY2013 to 16.4% in FY2014. If we look for the longer period EBITDA margin decreased slightly on 0.500 pp from 16.9% in 2011 to 16.4% in 2014.
Jintian Pharmaceutical Group Ltd shows attractive ROIC at 24.0% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 78.8%. It's average level of ROIC for the last three years was 36.3%.
Net Income margin increased slightly on 0.200 pp from 10.7% to 10.9% in 2014. In the longer period the company's Net Income margin dropped on 1.30 pp from 12.2% in 2011 to 10.9% in 2014.
Jintian Pharmaceutical Group Ltd operates at ROE of 19.1%. It's average ROE for the last three years was 30.2%.
Capital expenditures (CAPEX)
Jintian Pharmaceutical Group Ltd's CAPEX/Revenue was 1.48% in FY2014. Jintian Pharmaceutical Group Ltd's CAPEX/Revenue surged on 0.681 pp from 0.797% in 2011 to 1.48% in 2014. It's average CAPEX/Revenue for the last three years was 1.13%.
Leverage (Debt)
Jintian Pharmaceutical Group Ltd has negative net debt at -1.4x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 1.50x from -2.86x in 2011 to -1.36x in 2014.
Peers in Retail
Below you can find Jintian Pharmaceutical Group Ltd benchmarking vs. other companies in Retail 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Ming Fung Jewellery Group Ltd ($860) | | 21.9% | 3.3% | -14.9% | 54.3% |
| Luk Fook Holdings International Ltd ($590) | | 50.2% | 47.2% | 12.6% | 43.3% |
| NewOcean Energy Holdings Ltd ($342) | | 19.3% | 23.1% | 15.9% | 36.0% |
| Tsui Wah Holdings Ltd ($1314) | | 35.9% | 27.5% | 42.2% | 35.9% |
| Chow Tai Fook Jewellery Group Ltd ($1929) | | 52.8% | 61.4% | 1.5% | 34.8% |
| |
|---|
| Median (62 companies) | | 19.8% | 11.0% | 5.9% | 3.1% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | | 71.7% | 57.8% | 42.9% | 31.1% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Culture Landmark Investment Ltd ($674) | 77.0% | 77.5% | 91.1% | 99.4% | 99.5% |
| Modern Beauty Salon Holdings Ltd ($919) | 96.4% | 97.3% | 97.4% | 95.9% | 96.8% |
| Vongroup Ltd ($318) | | | | | 95.1% |
| Nanjing Sinolife United Co Ltd ($3332) | 79.7% | 80.6% | 86.5% | 89.3% | 90.9% |
| Moiselle International Holdings Ltd ($130) | 80.5% | 81.4% | 81.2% | 83.8% | 80.6% |
| |
|---|
| Median (57 companies) | 46.1% | 43.8% | 43.0% | 46.6% | 46.4% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 27.9% | 25.7% | 23.5% | 28.2% | 29.1% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Maoye International Holdings Ltd ($848) | 50.9% | 45.5% | 47.4% | 46.3% | 73.2% |
| Nanjing Sinolife United Co Ltd ($3332) | 34.8% | 47.8% | 51.6% | 56.9% | 54.4% |
| Lifestyle International Holdings Ltd ($1212) | 42.9% | 49.6% | 47.5% | 47.0% | 44.7% |
| Springland International Holdings Ltd ($1700) | 26.7% | 27.8% | 29.4% | 30.3% | 28.9% |
| Coach Inc ($6388) | 35.4% | 34.4% | 34.5% | 33.2% | 27.2% |
| |
|---|
| Median (62 companies) | 12.8% | 13.9% | 12.0% | 8.5% | 10.2% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 18.9% | 16.9% | 13.6% | 16.5% | 16.4% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Future Bright Holdings Ltd ($703) | 13.6% | 6.2% | 2.6% | 3.7% | 36.8% |
| Maoye International Holdings Ltd ($848) | 46.1% | 30.9% | 32.8% | 24.1% | 31.5% |
| Tsui Wah Holdings Ltd ($1314) | 3.4% | 5.2% | 8.3% | 9.3% | 30.5% |
| Springland International Holdings Ltd ($1700) | 13.1% | 20.7% | 31.9% | 17.4% | 26.5% |
| Culture Landmark Investment Ltd ($674) | 13.2% | 4.6% | 11.6% | 19.4% | 15.7% |
| |
|---|
| Median (62 companies) | 2.7% | 3.6% | 3.6% | 3.3% | 3.0% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 0.1% | 0.8% | 0.6% | 1.3% | 1.5% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | -24.3% | 48.1% | 50.7% | -4.6% | 81.3% |
| Starbucks Corp ($4337) | 35.2% | 36.4% | 36.4% | -6.0% | 52.8% |
| Sa Sa International Holdings Ltd ($178) | 39.2% | 45.7% | 53.5% | 52.7% | 49.0% |
| Coach Inc ($6388) | 73.9% | 82.0% | 82.3% | 68.7% | 45.0% |
| Nanjing Sinolife United Co Ltd ($3332) | | 57.4% | 67.3% | 68.1% | 32.2% |
| |
|---|
| Median (62 companies) | 15.0% | 17.7% | 13.3% | 8.0% | 8.9% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | | 78.8% | 52.8% | 32.1% | 24.0% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.7x | -0.8x | 0.6x | 4.0x | 9.3x |
| NewOcean Energy Holdings Ltd ($342) | 15.6x | 35.2x | 6.2x | 6.1x | 5.3x |
| Tse Sui Luen Jewellery International Ltd ($417) | -0.1x | 0.4x | 1.2x | 2.2x | 3.7x |
| Parkson Retail Group Ltd ($3368) | 1.2x | 0.4x | 0.8x | 2.3x | 3.6x |
| Maoye International Holdings Ltd ($848) | 2.0x | 1.7x | 2.9x | 3.3x | 3.4x |
| |
|---|
| Median (46 companies) | -0.8x | -1.0x | -0.7x | -1.1x | -0.9x |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | -0.7x | -2.9x | -1.3x | -2.8x | -1.4x |
