Bloomage BioTechnology Corp Ltd is an attractive growth stock
26/03/2015 • About Bloomage BioTechnology Corp Ltd (
$963) • By InTwits
Bloomage BioTechnology Corp Ltd is an attractive growth stock in Biotechnology industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Bloomage BioTechnology Corp Ltd showed fast growth in the last financial year. The company's revenue surged on 28.3% in FY2014. EBITDA also increased considerably: 48.1% for the same period.
In the longer period the company showed fast revenue growth of 32.7% from 2011 to 2014 annualy. EBITDA surged on 23.4% from 2011 to 2014 annualy.
Bloomage BioTechnology Corp Ltd ($963) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 154 | 206 | 275 | 375 | 481 |
|---|
| Revenue growth, % | | 34.1% | 33.4% | 36.4% | 28.3% |
|---|
| Gross margin, % | 78.5% | 73.2% | 69.3% | 79.9% | 78.0% |
|---|
| SG&A, % | 25.8% | 23.5% | 28.1% | 46.6% | 37.1% |
|---|
| EBITDA | 94 | 116 | 129 | 147 | 218 |
|---|
| EBITDA growth, % | | 22.9% | 11.0% | 14.3% | 48.1% |
|---|
| EBITDA margin, % | 61.3% | 56.2% | 46.8% | 39.2% | 45.2% |
|---|
| Net Income | 60 | 73 | 89 | 94 | 162 |
|---|
| Net Income margin, % | 39.3% | 35.2% | 32.5% | 25.2% | 33.7% |
|---|
| |
| CAPEX | 22 | 14 | 98 | 114 | 118 |
|---|
| CAPEX/Revenue, % | 14.6% | 6.98% | 35.8% | 30.4% | 24.6% |
|---|
| Debt | 53 | 54 | 55 | 91 | 69 |
|---|
| Cash | 131 | 189 | 121 | 133 | 172 |
|---|
| Net Debt/EBITDA | -0.8x | -1.2x | -0.5x | -0.3x | -0.5x |
|---|
| |
| ROIC, % | 33.8% | 33.7% | 30.1% | 24.1% | 27.2% |
|---|
| ROE, % | 30.7% | 28.3% | 26.8% | 20.1% | 24.6% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin surged on 6 pp from 39.2% to 45.2% in 2014. If we look for the longer period EBITDA margin dropped on 11 pp from 56.2% in 2011 to 45.2% in 2014.
We call Bloomage BioTechnology Corp Ltd an attractive growth stock as together with the growth it delivers high ROIC at 27.2%. Three years ago it was higher at 33.7%. Average ROIC for the last three years was 27.1%.
Bloomage BioTechnology Corp Ltd showed fast Net Income margin growth of 8.50 pp from 25.2% to 33.7% in 2014. In the last 3 years the company showed small Net Income margin decline of 1.50 pp from 35.2% in 2011 to 33.7% in 2014.
Bloomage BioTechnology Corp Ltd operates at ROE of 24.6%. It's average ROE for the last three years was 23.8%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.In FY2014 Bloomage BioTechnology Corp Ltd had CAPEX/Revenue of 24.6%. Bloomage BioTechnology Corp Ltd's CAPEX/Revenue surged on 17.6 pp from 6.98% in 2011 to 24.6% in 2014. It's average level of CAPEX/Revenue for the last three years was 30.3%.
Leverage (Debt)
Bloomage BioTechnology Corp Ltd has negative net debt at -0.5x Net Debt/EBITDA - at the same time with high growth. In the longer period Bloomage BioTechnology Corp Ltd showed fast leverage growth of 0.69x from -1.16x in 2011 to -0.47x in 2014.
Peers in Biotechnology
Below we provide Bloomage BioTechnology Corp Ltd benchmarking against other companies in Biotechnology 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Essex Bio-technology Ltd ($1061) | | 45.4% | 25.6% | 29.9% | 49.3% |
| Uni-Bio Science Group Ltd ($690) | | -48.2% | -25.7% | 46.1% | 23.1% |
| Amgen Inc ($4332) | | 3.5% | 10.8% | 8.2% | 7.4% |
| CK Life Sciences International Holdings Inc ($775) | | 30.3% | 29.4% | 9.4% | -0.3% |
| China Regenerative Medicine International Ltd ($8158) | | 8,636.7% | -95.1% | 975.8% | -63.0% |
| |
|---|
| Median (5 companies) | | 30.3% | 10.8% | 29.9% | 7.4% |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | | 34.1% | 33.4% | 36.4% | 28.3% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Uni-Bio Science Group Ltd ($690) | 52.1% | 62.1% | 67.2% | 79.5% | 80.0% |
| Essex Bio-technology Ltd ($1061) | 91.8% | 90.5% | 91.2% | 89.6% | 79.3% |
| Amgen Inc ($4332) | 85.3% | 84.4% | 81.5% | 82.1% | 78.0% |
| CK Life Sciences International Holdings Inc ($775) | 30.5% | 33.6% | 34.2% | 35.0% | 35.1% |
| China Regenerative Medicine International Ltd ($8158) | 20.0% | 64.4% | 33.6% | -17.3% | 31.0% |
| |
|---|
| Median (5 companies) | 52.1% | 64.4% | 67.2% | 79.5% | 78.0% |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 78.5% | 73.2% | 69.3% | 79.9% | 78.0% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Amgen Inc ($4332) | 43.6% | 34.5% | 38.6% | 38.3% | 41.3% |
| Essex Bio-technology Ltd ($1061) | 24.1% | 18.0% | 19.0% | 21.9% | 21.3% |
| CK Life Sciences International Holdings Inc ($775) | 11.9% | 9.3% | 9.9% | 10.0% | 10.7% |
| Uni-Bio Science Group Ltd ($690) | -20.7% | -8.0% | -25.3% | -0.3% | -45.9% |
| China Regenerative Medicine International Ltd ($8158) | -107,460.0% | -1,318.5% | -40,521.9% | -3,443.4% | -19,703.9% |
| |
|---|
| Median (5 companies) | 11.9% | 9.3% | 9.9% | 10.0% | 10.7% |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 61.3% | 56.2% | 46.8% | 39.2% | 45.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Regenerative Medicine International Ltd ($8158) | 101,613.3% | 1,076.2% | 40,271.9% | 810.7% | 3,305.9% |
| Uni-Bio Science Group Ltd ($690) | 0.7% | 5.1% | 23.9% | 28.9% | 35.5% |
| CK Life Sciences International Holdings Inc ($775) | 2.2% | 5.4% | 3.8% | 5.8% | 9.9% |
| Amgen Inc ($4332) | 3.9% | 3.6% | 4.0% | 3.7% | 3.6% |
| Essex Bio-technology Ltd ($1061) | 4.7% | 9.9% | 36.6% | 10.4% | 1.5% |
| |
|---|
| Median (5 companies) | 3.9% | 5.4% | 23.9% | 10.4% | 9.9% |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 14.6% | 7.0% | 35.8% | 30.4% | 24.6% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Essex Bio-technology Ltd ($1061) | 27.0% | 24.7% | 22.6% | 25.2% | 28.5% |
| Amgen Inc ($4332) | 15.7% | 11.1% | 13.0% | 11.7% | 11.2% |
| CK Life Sciences International Holdings Inc ($775) | 3.4% | 3.0% | 4.2% | 4.1% | 4.3% |
| Uni-Bio Science Group Ltd ($690) | -9.7% | -7.4% | -9.0% | -7.3% | -15.6% |
| China Regenerative Medicine International Ltd ($8158) | -10.7% | -10.9% | -16.0% | -11.9% | -16.4% |
| |
|---|
| Median (5 companies) | 3.4% | 3.0% | 4.2% | 4.1% | 4.3% |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 33.8% | 33.7% | 30.1% | 24.1% | 27.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| CK Life Sciences International Holdings Inc ($775) | 1.5x | 5.4x | 4.3x | 6.1x | 6.4x |
| Amgen Inc ($4332) | 1.5x | 2.7x | 3.5x | 4.0x | 3.3x |
| Essex Bio-technology Ltd ($1061) | -2.2x | -1.0x | 0.3x | -0.0x | -0.1x |
| |
|---|
| Median (3 companies) | 1.5x | 2.7x | 3.5x | 4.0x | 3.3x |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | -0.8x | -1.2x | -0.5x | -0.3x | -0.5x |
