Consun Pharmaceutical Group Ltd is an attractive stock for a growth investor
01/04/2015 • About Consun Pharmaceutical Group Ltd (
$1681) • By InTwits
Have you thought about Consun Pharmaceutical Group Ltd as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Consun Pharmaceutical Group Ltd showed fast growth in the last financial year. The company's revenue surged on 27.8% in FY2014. Together with revenue growth Consun Pharmaceutical Group Ltd also managed to keep EBITDA growth. EBITDA grew 14.7% for the same period.
In the longer period Consun Pharmaceutical Group Ltd showed fast revenue growth of 23.4% from 2011 to 2014 annualy. EBITDA surged on 17.7% from 2011 to 2014 annualy.
Consun Pharmaceutical Group Ltd ($1681) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 304 | 389 | 458 | 572 | 731 |
|---|
| Revenue growth, % | | 28.2% | 17.6% | 24.9% | 27.8% |
|---|
| Gross margin, % | 79.0% | 75.5% | 75.7% | 79.1% | 78.3% |
|---|
| SG&A, % | 53.9% | 38.8% | 37.7% | 41.1% | 43.5% |
|---|
| EBITDA | 113 | 154 | 188 | 219 | 251 |
|---|
| EBITDA growth, % | | 36.2% | 22.2% | 16.3% | 14.7% |
|---|
| EBITDA margin, % | 37.3% | 39.6% | 41.2% | 38.3% | 34.4% |
|---|
| Net Income | 79 | 107 | 136 | 153 | 211 |
|---|
| Net Income margin, % | 26.1% | 27.6% | 29.8% | 26.7% | 28.9% |
|---|
| |
| CAPEX | 18 | 32 | 37 | 64 | 21 |
|---|
| CAPEX/Revenue, % | 5.82% | 8.12% | 8.16% | 11.2% | 2.87% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 32 | 65 | 82 | 902 | 844 |
|---|
| Net Debt/EBITDA | -0.3x | -0.4x | -0.4x | -4.1x | -3.4x |
|---|
| |
| ROIC, % | | 50.1% | 51.1% | 24.2% | 16.8% |
|---|
| ROE, % | | 43.5% | 45.3% | 19.0% | 15.7% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 38.3% in FY2013 to 34.4% in FY2014. In the longer period the company's EBITDA margin dropped on 5.20 pp from 39.6% in 2011 to 34.4% in 2014.
Consun Pharmaceutical Group Ltd shows attractive ROIC at 16.8% for the last 12 months which assumes stable development model. Three years ago it was considerably higher at 50.1%. For the last three years the average ROIC was 30.7%.
The company's Net Income margin increased on 2.20 pp from 26.7% to 28.9% in 2014. If we look for the longer period the company's Net Income margin increased slightly on 1.30 pp from 27.6% in 2011 to 28.9% in 2014.
Consun Pharmaceutical Group Ltd operates at ROE of 15.7%. Average ROE for the last three years was 26.7%.
Capital expenditures (CAPEX)
Consun Pharmaceutical Group Ltd's CAPEX/Revenue was 2.87% in FY2014. The company showed big decline in CAPEX/Revenue of 5.25 pp from 8.12% in 2011 to 2.87% in 2014. For the last three years the average CAPEX/Revenue was 7.41%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -3.4x Net Debt/EBITDA. In the last 3 years Consun Pharmaceutical Group Ltd showed fast leverage growth of 2.94x from -0.42x in 2011 to -3.36x in 2014.
Peers in Pharmaceuticals
Below you can find Consun Pharmaceutical Group 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 (25 companies) | | 15.4% | 13.4% | 17.3% | 17.4% |
|---|
| Consun Pharmaceutical Group Ltd ($1681) | | 28.2% | 17.6% | 24.9% | 27.8% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sino Biopharmaceutical Ltd ($1177) | 80.8% | 78.5% | 78.5% | 77.5% | 76.4% |
| 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% |
| |
|---|
| Median (24 companies) | 29.2% | 34.7% | 36.9% | 33.3% | 43.2% |
|---|
| Consun Pharmaceutical Group Ltd ($1681) | 79.0% | 75.5% | 75.7% | 79.1% | 78.3% |
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 (24 companies) | 9.9% | 15.5% | 13.0% | 17.3% | 17.3% |
|---|
| Consun Pharmaceutical Group Ltd ($1681) | 37.3% | 39.6% | 41.2% | 38.3% | 34.4% |
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 (24 companies) | 6.5% | 5.7% | 5.9% | 6.7% | 7.6% |
|---|
| Consun Pharmaceutical Group Ltd ($1681) | 5.8% | 8.1% | 8.2% | 11.2% | 2.9% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sino Biopharmaceutical Ltd ($1177) | 27.8% | 19.9% | 26.2% | 26.8% | 26.5% |
| 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% |
| China Pioneer Pharma Holdings Ltd ($1345) | | 27.4% | 34.4% | 25.1% | 17.2% |
| |
|---|
| Median (25 companies) | 10.9% | 8.7% | 10.8% | 7.8% | 9.1% |
|---|
| Consun Pharmaceutical Group Ltd ($1681) | | 50.1% | 51.1% | 24.2% | 16.8% |
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 Pioneer Pharma Holdings Ltd ($1345) | 0.5x | 2.3x | 1.8x | -1.0x | 1.2x |
| |
|---|
| Median (19 companies) | -1.1x | -0.4x | 0.0x | 0.0x | -0.3x |
|---|
| Consun Pharmaceutical Group Ltd ($1681) | -0.3x | -0.4x | -0.4x | -4.1x | -3.4x |
