The numbers tell that China Medical System Holdings Ltd's growth is outstanding
03/04/2015 • About China Medical System Holdings Ltd (
$867) • By InTwits
China Medical System Holdings Ltd is an attractive growth stock in Healthcare-Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
China Medical System Holdings Ltd showed growth in the last financial year. China Medical System Holdings Ltd's revenue surged on 31.0% in FY2014. At the same time the company well managed its profitability and showed even faster growth in EBITDA of 59.2% for the same period.
If we look for the longer period the company showed fast revenue growth of 29.4% from 2011 to 2014 annualy. EBITDA surged on 39.2% from 2011 to 2014 annualy.
China Medical System Holdings Ltd ($867) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 895 | 1,360 | 1,779 | 2,249 | 2,945 |
|---|
| Revenue growth, % | | 52.0% | 30.8% | 26.5% | 31.0% |
|---|
| Gross margin, % | 59.1% | 56.6% | 58.8% | 54.5% | 56.2% |
|---|
| SG&A, % | 30.6% | 27.7% | 27.1% | 27.3% | 26.6% |
|---|
| EBITDA | 250 | 430 | 614 | 729 | 1,160 |
|---|
| EBITDA growth, % | | 72.1% | 42.8% | 18.6% | 59.2% |
|---|
| EBITDA margin, % | 27.9% | 31.6% | 34.5% | 32.4% | 39.4% |
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| Net Income | 207 | 403 | 537 | 636 | 1,046 |
|---|
| Net Income margin, % | 23.1% | 29.6% | 30.2% | 28.3% | 35.5% |
|---|
| |
| CAPEX | 25 | 89 | 36 | 148 | 65 |
|---|
| CAPEX/Revenue, % | 2.84% | 6.56% | 2.04% | 6.57% | 2.22% |
|---|
| Debt | 28 | 252 | 404 | 314 | 484 |
|---|
| Cash | 883 | 617 | 668 | 488 | 244 |
|---|
| Net Debt/EBITDA | -3.4x | -0.8x | -0.4x | -0.2x | 0.2x |
|---|
| |
| ROIC, % | 25.9% | 19.7% | 19.4% | 20.2% | 27.4% |
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| ROE, % | 24.1% | 21.2% | 20.3% | 21.0% | 28.8% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. The company's EBITDA margin surged on 7 pp from 32.4% to 39.4% in 2014. In the last 3 years EBITDA margin surged on 7.80 pp from 31.6% in 2011 to 39.4% in 2014.
China Medical System Holdings Ltd shows attractive ROIC at 27.4% for the last 12 months which assumes stable development model. Three years ago it was lower at 19.7%. For the last three years the average ROIC was 22.3%.
Net Income margin surged on 7.20 pp from 28.3% to 35.5% in 2014. If we look for the longer period the company showed fast Net Income margin growth of 5.90 pp from 29.6% in 2011 to 35.5% in 2014.
China Medical System Holdings Ltd operates at ROE of 28.8%. It's average level of ROE for the last three years was 23.4%.
Capital expenditures (CAPEX)
China Medical System Holdings Ltd's CAPEX/Revenue was 2.22% in FY2014. The company's CAPEX/Revenue dropped on 4.34 pp from 6.56% in 2011 to 2.22% in 2014. Average CAPEX/Revenue for the last three years was 3.61%.
Leverage (Debt)
The company has low debt level at 0.2x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 1.06x from -0.85x in 2011 to 0.21x in 2014.
Management team
China Medical System Holdings Ltd is run by Lam Kong as a CEO and by Chen Yanling as a CFO.
Peers in Healthcare-Products
Below you can find China Medical System Holdings Ltd benchmarking vs. other companies in Healthcare-Products 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 |
|---|
| PW Medtech Group Ltd ($1358) | | 188.2% | 89.2% | 37.9% | 33.0% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | | 29.2% | 16.0% | 25.1% | 14.4% |
| Biosino Bio-Technology & Science Inc ($8247) | | 9.4% | 14.1% | 11.6% | 13.2% |
| Hengan International Group Co Ltd ($1044) | | 21.0% | 6.4% | 11.4% | 12.8% |
| Elegance Optical International Holdings Ltd ($907) | | 17.8% | -14.7% | -16.2% | 4.4% |
| |
|---|
| Median (11 companies) | | 19.4% | 4.5% | 11.6% | 2.9% |
|---|
| China Medical System Holdings Ltd ($867) | | 52.0% | 30.8% | 26.5% | 31.0% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| PW Medtech Group Ltd ($1358) | 72.7% | 62.3% | 66.0% | 67.9% | 72.8% |
| Golden Meditech Holdings Ltd ($801) | 60.5% | 57.5% | 69.1% | 69.8% | 70.2% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.2% | 55.3% | 57.3% | 59.1% | 58.8% |
| Biosino Bio-Technology & Science Inc ($8247) | 59.9% | 57.9% | 55.5% | 54.5% | 49.7% |
| China Fortune Investments Holdings Ltd ($8116) | 69.5% | | 34.6% | 44.8% | 46.8% |
| |
|---|
| Median (11 companies) | 44.3% | 41.3% | 34.8% | 45.1% | 46.1% |
|---|
| China Medical System Holdings Ltd ($867) | 59.1% | 56.6% | 58.8% | 54.5% | 56.2% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| PW Medtech Group Ltd ($1358) | 35.9% | 42.3% | 44.2% | 30.6% | 41.6% |
| Golden Meditech Holdings Ltd ($801) | 43.9% | 42.5% | 41.4% | 37.9% | 29.8% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 32.1% | 31.3% | 28.5% | 28.0% | 29.0% |
| Hengan International Group Co Ltd ($1044) | 24.7% | 20.8% | 27.4% | 25.3% | 25.3% |
| Biosino Bio-Technology & Science Inc ($8247) | 28.8% | 25.0% | 18.3% | 17.1% | 13.4% |
| |
|---|
| Median (11 companies) | 24.7% | 18.3% | 13.0% | 17.1% | 8.8% |
|---|
| China Medical System Holdings Ltd ($867) | 27.9% | 31.6% | 34.5% | 32.4% | 39.4% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| PW Medtech Group Ltd ($1358) | 39.4% | 21.1% | 14.8% | 22.3% | 30.2% |
| Golden Meditech Holdings Ltd ($801) | 14.6% | 9.5% | 12.7% | 51.2% | 27.3% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.2% | 41.7% | 26.0% | 20.2% | 11.7% |
| Hengan International Group Co Ltd ($1044) | 8.3% | 14.2% | 13.3% | 6.6% | 7.0% |
| Biosino Bio-Technology & Science Inc ($8247) | 5.6% | 22.0% | 12.6% | 4.9% | 6.9% |
| |
|---|
| Median (11 companies) | 5.6% | 8.3% | 3.8% | 5.3% | 5.0% |
|---|
| China Medical System Holdings Ltd ($867) | 2.8% | 6.6% | 2.0% | 6.6% | 2.2% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Hengan International Group Co Ltd ($1044) | 20.4% | 16.9% | 19.5% | 14.9% | 14.0% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 19.6% | 14.6% | 10.5% | 11.7% | 12.8% |
| PW Medtech Group Ltd ($1358) | | 30.9% | 30.7% | 9.2% | 10.0% |
| Sun Hing Vision Group Holdings Ltd ($125) | 11.5% | 13.2% | 10.2% | 6.6% | 5.4% |
| Biosino Bio-Technology & Science Inc ($8247) | 11.3% | 8.6% | 6.8% | 7.1% | 5.2% |
| |
|---|
| Median (11 companies) | 13.1% | 11.2% | 3.9% | 6.6% | 4.8% |
|---|
| China Medical System Holdings Ltd ($867) | 25.9% | 19.7% | 19.4% | 20.2% | 27.4% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Fortune Investments Holdings Ltd ($8116) | 0.2x | 18.2x | | 2.9x | 93.0x |
| Techcomp Holdings Ltd ($1298) | 0.4x | 1.7x | 4.3x | 3.6x | 2.7x |
| Hengan International Group Co Ltd ($1044) | 0.0x | 0.9x | 1.4x | 1.7x | 1.8x |
| PW Medtech Group Ltd ($1358) | -2.9x | -0.8x | -1.2x | -7.5x | -0.3x |
| Biosino Bio-Technology & Science Inc ($8247) | -2.9x | -1.3x | -1.1x | -1.7x | -1.5x |
| |
|---|
| Median (8 companies) | -0.6x | -1.1x | -1.2x | -1.5x | -0.9x |
|---|
| China Medical System Holdings Ltd ($867) | -3.4x | -0.8x | -0.4x | -0.2x | 0.2x |
