Eye on China Pioneer Pharma Holdings Ltd as a growth stock: its revenue grew 29.0% and EBITDA 35.7% annually over the last three years
31/03/2015 • About China Pioneer Pharma Holdings Ltd (
$1345) • By InTwits
China Pioneer Pharma Holdings Ltd is an attractive growth stock in Pharmaceuticals industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
China Pioneer Pharma Holdings Ltd showed fast growth in the last financial year. The company's revenue surged on 21.1% in FY2014. Together with revenue growth China Pioneer Pharma Holdings Ltd also managed to keep EBITDA growth. EBITDA grew 9.79% for the same period.
In the last 3 years China Pioneer Pharma Holdings Ltd showed fast revenue growth of 29.0% from 2011 to 2014 annualy. EBITDA surged on 35.7% from 2011 to 2014 annualy.
China Pioneer Pharma Holdings Ltd ($1345) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 571 | 718 | 959 | 1,272 | 1,540 |
|---|
| Revenue growth, % | | 25.8% | 33.6% | 32.7% | 21.1% |
|---|
| Gross margin, % | 29.1% | 27.3% | 32.0% | 30.4% | 31.9% |
|---|
| SG&A, % | 13.6% | 11.8% | 12.3% | 10.6% | 13.7% |
|---|
| EBITDA | 97 | 123 | 203 | 281 | 308 |
|---|
| EBITDA growth, % | | 26.9% | 64.5% | 38.5% | 9.8% |
|---|
| EBITDA margin, % | 17.0% | 17.2% | 21.1% | 22.1% | 20.0% |
|---|
| Net Income | 70 | 96 | 186 | 238 | 262 |
|---|
| Net Income margin, % | 12.3% | 13.3% | 19.4% | 18.7% | 17.0% |
|---|
| |
| CAPEX | 1 | 2 | 1 | 16 | 39 |
|---|
| CAPEX/Revenue, % | 0.235% | 0.268% | 0.0790% | 1.26% | 2.56% |
|---|
| Debt | 159 | 338 | 416 | 430 | 620 |
|---|
| Cash | 114 | 51 | 60 | 702 | 261 |
|---|
| Net Debt/EBITDA | 0.5x | 2.3x | 1.8x | -1.0x | 1.2x |
|---|
| |
| ROIC, % | | 27.4% | 34.4% | 25.1% | 17.2% |
|---|
| ROE, % | | 52.3% | 92.2% | 34.8% | 22.9% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. If we look for the longer period the company's EBITDA margin surged on 2.80 pp from 17.2% in 2011 to 20% in 2014.
We call China Pioneer Pharma Holdings Ltd an attractive growth stock as together with the growth it delivers high ROIC at 17.2%. Three years ago it was considerably higher at 27.4%. Average ROIC for the last three years was 25.5%.
China Pioneer Pharma Holdings Ltd showed decline of 1.70 pp from 18.7% to 17% in 2014. In the longer period the company's Net Income margin surged on 3.70 pp from 13.3% in 2011 to 17% in 2014.
China Pioneer Pharma Holdings Ltd operates at ROE of 22.9%. Average ROE for the last three years was 50.0%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.56% in FY2014. CAPEX/Revenue surged on 2.29 pp from 0.268% in 2011 to 2.56% in 2014. Average CAPEX/Revenue for the last three years was 1.30%.
Leverage (Debt)
Having such a fast growth profile China Pioneer Pharma Holdings Ltd keeps medium debt level at 1.2x Net Debt/EBITDA. In the longer period leverage dropped on 1.16x from 2.33x in 2011 to 1.16x in 2014.
Peers in Pharmaceuticals
Below you can find China Pioneer Pharma Holdings Ltd 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Hong Kong Life Sciences and Technology Group Ltd ($8085) | | 7.0% | -10.0% | -45.4% | 1,636.5% |
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | | -17.7% | 15.1% | -99.9% | 480.0% |
| United Gene High-Tech Group Ltd ($399) | | -81.4% | -71.8% | -60.5% | 196.0% |
| China Traditional Chinese Medicine Co Ltd ($570) | | 3.1% | 22.3% | 35.2% | 90.0% |
| Dragonite International Ltd ($329) | | -8.8% | -10.5% | 13.5% | 64.8% |
| |
|---|
| Median (23 companies) | | 14.9% | 13.1% | 15.3% | 14.8% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | | 25.8% | 33.6% | 32.7% | 21.1% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 71.9% | 72.6% | 65.2% | 77.9% | 72.1% |
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 55.9% | 61.6% | 67.4% | 65.0% | 68.4% |
| Tianda Pharmaceuticals Ltd ($455) | 76.4% | 79.6% | 74.5% | 68.8% | 64.1% |
| China Traditional Chinese Medicine Co Ltd ($570) | 55.8% | 54.0% | 54.7% | 59.2% | 62.0% |
| Livzon Pharmaceutical Group Inc ($1513) | 52.7% | 55.2% | 59.6% | 62.8% | 60.9% |
| |
|---|
| Median (22 companies) | 29.2% | 34.7% | 36.9% | 33.3% | 43.2% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 29.1% | 27.3% | 32.0% | 30.4% | 31.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Asia Resources Holdings Ltd ($899) | -8.9% | 3.5% | -80.8% | 25.1% | 113.7% |
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 18.2% | 18.8% | 20.3% | 23.8% | 38.5% |
| Tianda Pharmaceuticals Ltd ($455) | 57.7% | 66.9% | 77.7% | 42.0% | 33.2% |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 47.4% | 32.9% | 60.6% | 21.0% | 28.8% |
| Extrawell Pharmaceutical Holdings Ltd ($858) | 9.4% | 4.0% | 11.2% | 9.5% | 27.3% |
| |
|---|
| Median (22 companies) | 9.4% | 15.1% | 11.3% | 16.2% | 15.8% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 17.0% | 17.2% | 21.1% | 22.1% | 20.0% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 25.1% | 0.2% | | 11,100.0% | 103.4% |
| Extrawell Pharmaceutical Holdings Ltd ($858) | 0.7% | 5.7% | 1.7% | 20.6% | 92.4% |
| Asia Resources Holdings Ltd ($899) | 28.6% | 12.2% | 4.4% | 8.1% | 92.0% |
| Dragonite International Ltd ($329) | 15.5% | 2.0% | 27.8% | 19.3% | 19.1% |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 4.8% | 17.4% | 38.7% | 34.1% | 13.7% |
| |
|---|
| Median (22 companies) | 6.5% | 8.6% | 6.2% | 6.9% | 8.0% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 0.2% | 0.3% | 0.1% | 1.3% | 2.6% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 43.8% | 34.4% | 27.6% | 22.2% | 19.9% |
| CSPC Pharmaceutical Group Ltd ($1093) | 13.9% | 9.9% | 14.5% | 12.8% | 18.1% |
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 25.0% | 17.7% | 12.6% | 14.0% | 17.8% |
| Tong Ren Tang Technologies Co Ltd ($1666) | 15.2% | 17.2% | 21.4% | 18.4% | 16.2% |
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 4.8% | 4.0% | 12.3% | 12.8% | 14.3% |
| |
|---|
| Median (23 companies) | 10.4% | 8.4% | 9.7% | 7.2% | 8.4% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | | 27.4% | 34.4% | 25.1% | 17.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China NT Pharma Group Co Ltd ($1011) | 2.6x | 0.4x | | | 7.2x |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 0.4x | 2.5x | 5.4x | 4.0x | 3.4x |
| Shanghai Fosun Pharmaceutical Group Co Ltd ($2196) | 5.7x | 2.4x | 0.8x | 1.4x | 2.2x |
| Sinopharm Group Co Ltd ($1099) | -1.5x | 0.2x | 1.2x | 1.6x | 1.6x |
| China Traditional Chinese Medicine Co Ltd ($570) | -0.4x | 1.8x | 1.1x | 2.7x | 1.1x |
| |
|---|
| Median (17 companies) | -1.1x | -0.4x | 0.0x | 0.1x | -0.3x |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 0.5x | 2.3x | 1.8x | -1.0x | 1.2x |
