Lifetech Scientific Corp demonstrates fast growth
06/04/2015 • About Lifetech Scientific Corp (
$1302) • By InTwits
Lifetech Scientific Corp is a growth stock in Healthcare-Products industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Lifetech Scientific Corp showed fast growth in the last financial year. Lifetech Scientific Corp's revenue surged on 22.4% in FY2014. The growth also happened in EBITDA of 16.9% for the same period.
In the last 3 years Lifetech Scientific Corp showed fast revenue growth of 26.3% from 2011 to 2014 annualy. EBITDA surged on 40.0% from 2011 to 2014 annualy.
Lifetech Scientific Corp ($1302) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 105 | 140 | 181 | 231 | 283 |
|---|
| Revenue growth, % | | 34.0% | 29.3% | 27.3% | 22.4% |
|---|
| Gross margin, % | 79.9% | 80.5% | 80.1% | 81.6% | 81.4% |
|---|
| SG&A, % | 35.2% | 46.9% | 43.6% | 49.9% | 51.2% |
|---|
| EBITDA | 37 | 24 | 57 | 57 | 66 |
|---|
| EBITDA growth, % | | -34.3% | 138.3% | -1.4% | 16.9% |
|---|
| EBITDA margin, % | 35.0% | 17.2% | 31.6% | 24.5% | 23.4% |
|---|
| Net Income | 4 | 12 | 32 | -66 | -81 |
|---|
| Net Income margin, % | 3.76% | 8.43% | 17.8% | -28.4% | -28.7% |
|---|
| |
| CAPEX | 6 | 15 | 0 | 38 | 0 |
|---|
| CAPEX/Revenue, % | 5.99% | 10.7% | 0% | 16.5% | 0% |
|---|
| Debt | 0 | 0 | 0 | 67 | 78 |
|---|
| Cash | 83 | 185 | 198 | 225 | 256 |
|---|
| Net Debt/EBITDA | -2.3x | -7.7x | -3.5x | -2.8x | -2.7x |
|---|
| |
| ROIC, % | 349.6% | 13.0% | 17.5% | 15.9% | 21.2% |
|---|
| ROE, % | | | 11.5% | -24.9% | -42.4% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 24.5% in FY2013 to 23.4% in FY2014. In the longer period Lifetech Scientific Corp's EBITDA margin surged on 6.20 pp from 17.2% in 2011 to 23.4% in 2014.
We call Lifetech Scientific Corp an attractive growth stock as together with the growth it delivers high ROIC at 21.2%. Three years ago it was lower at 13.0%. It's average ROIC for the last three years was 18.2%.
Lifetech Scientific Corp showed fast Net Income margin growth of 0.300 pp from -28.4% to -28.7% in 2014. In the last 3 years Lifetech Scientific Corp showed big decline in Net Income margin of 37.1 pp from 8.40% in 2011 to -28.7% in 2014.
Lifetech Scientific Corp operates at ROE of -42.4%. It's average ROE for the last three years was -18.6%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0% in FY2014. The company's CAPEX/Revenue dropped on 10.7 pp from 10.7% in 2011 to 0% in 2014.
Leverage (Debt)
The company has negative net debt at -2.7x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period Lifetech Scientific Corp's leverage surged on 4.99x from -7.68x in 2011 to -2.69x in 2014.
Peers in Healthcare-Products
Below we provide Lifetech Scientific Corp benchmarking against other companies in Healthcare-Products 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 |
|---|
| PW Medtech Group Ltd ($1358) | | 188.2% | 89.2% | 37.9% | 33.0% |
| China Medical System Holdings Ltd ($867) | | 52.0% | 30.8% | 26.5% | 31.0% |
| 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% |
| |
|---|
| Median (13 companies) | | 19.4% | 4.5% | 11.6% | 4.4% |
|---|
| Lifetech Scientific Corp ($1302) | | 34.0% | 29.3% | 27.3% | 22.4% |
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% |
| China Medical System Holdings Ltd ($867) | 59.1% | 56.6% | 58.8% | 54.5% | 56.2% |
| Biosino Bio-Technology & Science Inc ($8247) | 59.9% | 57.9% | 55.5% | 54.5% | 49.7% |
| |
|---|
| Median (13 companies) | 44.3% | 41.3% | 34.8% | 45.1% | 46.1% |
|---|
| Lifetech Scientific Corp ($1302) | 79.9% | 80.5% | 80.1% | 81.6% | 81.4% |
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% |
| China Medical System Holdings Ltd ($867) | 27.9% | 31.6% | 34.5% | 32.4% | 39.4% |
| 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% |
| |
|---|
| Median (13 companies) | 24.7% | 18.3% | 13.0% | 17.1% | 13.4% |
|---|
| Lifetech Scientific Corp ($1302) | 35.0% | 17.2% | 31.6% | 24.5% | 23.4% |
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% |
| Arts Optical International Hldgs ($1120) | 7.6% | 5.6% | 14.0% | 4.5% | 14.0% |
| 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% |
| |
|---|
| Median (13 companies) | 5.6% | 6.9% | 3.8% | 5.3% | 5.0% |
|---|
| Lifetech Scientific Corp ($1302) | 6.0% | 10.7% | 0.0% | 16.5% | 0.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| China Medical System Holdings Ltd ($867) | 25.9% | 19.7% | 19.4% | 20.2% | 27.4% |
| 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% |
| Arts Optical International Hldgs ($1120) | 11.3% | 8.8% | 3.9% | 2.6% | 8.4% |
| |
|---|
| Median (13 companies) | 13.1% | 11.2% | 3.9% | 6.6% | 5.2% |
|---|
| Lifetech Scientific Corp ($1302) | 349.6% | 13.0% | 17.5% | 15.9% | 21.2% |
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 |
| China Medical System Holdings Ltd ($867) | -3.4x | -0.8x | -0.4x | -0.2x | 0.2x |
| PW Medtech Group Ltd ($1358) | -2.9x | -0.8x | -1.2x | -7.5x | -0.3x |
| |
|---|
| Median (10 companies) | -0.6x | -0.9x | -1.1x | -1.2x | -0.9x |
|---|
| Lifetech Scientific Corp ($1302) | -2.3x | -7.7x | -3.5x | -2.8x | -2.7x |
