Eye on Jilin Province Huinan Changlong Bio-pharmacy Co Ltd as a growth stock
06/04/2015 • About Jilin Province Huinan Changlong Bio-pharmacy Co Ltd (
$8049) • By InTwits
Jilin Province Huinan Changlong Bio-pharmacy Co 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
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd showed growth in the last financial year. Jilin Province Huinan Changlong Bio-pharmacy Co Ltd's revenue surged on 31.5% in FY2014. At the same time the company well managed its profitability and showed even faster growth in EBITDA of 85.4% for the same period.
In the last 3 years Jilin Province Huinan Changlong Bio-pharmacy Co Ltd showed fast revenue growth of 29.9% from 2011 to 2014 annualy. EBITDA surged on 40.2% from 2011 to 2014 annualy.
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 201 | 274 | 353 | 458 | 602 |
|---|
| Revenue growth, % | | 36.7% | 28.8% | 29.6% | 31.5% |
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| Gross margin, % | 78.7% | 83.9% | 82.0% | 81.5% | 80.9% |
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| SG&A, % | | 63.6% | 65.2% | 63.9% | 57.3% |
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| EBITDA | 59 | 73 | 76 | 109 | 202 |
|---|
| EBITDA growth, % | | 24.2% | 3.6% | 43.6% | 85.4% |
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| EBITDA margin, % | 29.4% | 26.7% | 21.5% | 23.8% | 33.6% |
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| Net Income | 36 | 51 | 59 | 79 | 133 |
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| Net Income margin, % | 17.9% | 18.6% | 16.6% | 17.3% | 22.1% |
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| |
| CAPEX | 4 | 38 | 88 | 81 | 13 |
|---|
| CAPEX/Revenue, % | 2.08% | 13.8% | 24.9% | 17.8% | 2.09% |
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| Debt | 7 | 7 | 11 | 9 | 9 |
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| Cash | 98 | 70 | 89 | 70 | 130 |
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| Net Debt/EBITDA | -1.5x | -0.9x | -1.0x | -0.6x | -0.6x |
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| |
| ROIC, % | 15.5% | 18.5% | 16.7% | 20.8% | 33.0% |
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| ROE, % | 13.1% | 16.1% | 15.9% | 18.3% | 24.6% |
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Profitability and return on investment
EBITDA growth was supported by margin expansion. Jilin Province Huinan Changlong Bio-pharmacy Co Ltd showed fast EBITDA margin growth of 9.80 pp from 23.8% to 33.6% in 2014. If we look for the longer period EBITDA margin surged on 6.90 pp from 26.7% in 2011 to 33.6% in 2014.
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd shows attractive ROIC at 33.0% for the last 12 months which assumes stable development model. During the last three years it surged - it was 18.5% in FY2011. It's average ROIC for the last three years was 23.5%.
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd showed fast Net Income margin growth of 4.80 pp from 17.3% to 22.1% in 2014. In the last 3 years the company's Net Income margin surged on 3.50 pp from 18.6% in 2011 to 22.1% in 2014.
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd operates at ROE of 24.6%. For the last three years the average ROE was 19.6%.
Capital expenditures (CAPEX)
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd's CAPEX/Revenue was 2.09% in FY2014. Jilin Province Huinan Changlong Bio-pharmacy Co Ltd's CAPEX/Revenue dropped on 11.7 pp from 13.8% in 2011 to 2.09% in 2014. For the last three years the average CAPEX/Revenue was 14.9%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -0.6x Net Debt/EBITDA. In the last 3 years leverage surged on 0.26x from -0.86x in 2011 to -0.60x in 2014.
Peers in Pharmaceuticals
Below you can find Jilin Province Huinan Changlong Bio-pharmacy Co 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 (36 companies) | | 15.1% | 13.3% | 13.7% | 16.3% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | | 36.7% | 28.8% | 29.6% | 31.5% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Consun Pharmaceutical Group Ltd ($1681) | 79.0% | 75.5% | 75.7% | 79.1% | 78.3% |
| 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% |
| Lee's Pharmaceutical Holdings Ltd ($950) | 69.8% | 73.0% | 71.3% | 72.2% | 70.2% |
| Real Nutriceutical Group Ltd ($2010) | 72.6% | 71.5% | 69.1% | 68.0% | 70.1% |
| |
|---|
| Median (34 companies) | 35.5% | 37.2% | 37.9% | 37.2% | 46.8% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 78.7% | 83.9% | 82.0% | 81.5% | 80.9% |
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% |
| Pak Fah Yeow International Ltd ($239) | 34.6% | 28.7% | 33.9% | 28.4% | 52.4% |
| Real Nutriceutical Group Ltd ($2010) | 42.3% | 45.6% | 42.8% | 43.4% | 46.0% |
| China Shineway Pharmaceutical Group Ltd ($2877) | 48.9% | 47.8% | 37.8% | 40.1% | 40.5% |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 21.7% | 6.2% | 21.5% | 35.9% | 38.9% |
| |
|---|
| Median (35 companies) | 18.2% | 17.4% | 17.8% | 18.2% | 20.0% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 29.4% | 26.7% | 21.5% | 23.8% | 33.6% |
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% |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 9.6% | 19.5% | 16.8% | 52.4% | 39.6% |
| Hao Wen Holdings Ltd ($8019) | 5.9% | 6.4% | 30.0% | 2.3% | 38.2% |
| |
|---|
| Median (35 companies) | 5.9% | 8.6% | 8.0% | 6.9% | 7.4% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 2.1% | 13.8% | 24.9% | 17.8% | 2.1% |
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% |
| Lee's Pharmaceutical Holdings Ltd ($950) | 31.8% | 31.3% | 26.1% | 22.0% | 22.4% |
| 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% |
| |
|---|
| Median (36 companies) | 11.5% | 8.7% | 11.6% | 8.5% | 9.7% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 15.5% | 18.5% | 16.7% | 20.8% | 33.0% |
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 |
| Lansen Pharmaceutical Holdings Ltd ($503) | -0.3x | 0.9x | 1.7x | 2.8x | 3.4x |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 0.4x | 2.5x | 5.4x | 4.0x | 3.4x |
| Shandong Xinhua Pharmaceutical Co Ltd ($719) | 0.4x | 1.4x | 3.5x | 3.4x | 2.8x |
| Shanghai Fosun Pharmaceutical Group Co Ltd ($2196) | 5.7x | 2.4x | 0.8x | 1.4x | 2.2x |
| |
|---|
| Median (29 companies) | -0.8x | -0.2x | 0.0x | -0.1x | -0.5x |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | -1.5x | -0.9x | -1.0x | -0.6x | -0.6x |
