Extrawell Pharmaceutical Holdings Ltd reports 3,993% Net Income growth while 89.7 pp EBITDA Margin decline from 27.3% to -62.4%
29/06/2015 • About Extrawell Pharmaceutical Holdings Ltd (
$858) • By InTwits
Extrawell Pharmaceutical Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Extrawell Pharmaceutical Holdings Ltd is a company in decline: FY2015 revenue growth was -14.5%, 5 years revenue CAGR was -8.1%
- Extrawell Pharmaceutical Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.8%. At the same time it's a lot of higher than industry average of 11.2%.
- CAPEX is quite volatile: 4.6 in FY2015, 139 in FY2014, 31.2 in FY2013, 2.7 in FY2012, 11.2 in FY2011
- The company has unprofitable business model: ROIC is at -10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Extrawell Pharmaceutical Holdings Ltd ($858) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 198.8 | 157.4 | 151.1 | 150.7 | 128.8 | -14.5% |
| Gross Profit | 52.0 | 47.5 | 46.7 | 74.0 | 51.1 | -31.0% |
| SG&A | 44.6 | 36.7 | 36.5 | 74.2 | 65.5 | -11.7% |
| EBITDA | 7.9 | 17.6 | 14.3 | 41.2 | -80.4 | -295.2% |
| Net Income | 11.6 | 20.4 | 10.9 | 13.8 | 565.5 | 3,992.8% |
Balance Sheet
|
|---|
| Cash | 124.6 | 140.1 | 136.5 | 103.7 | 152.2 | 46.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 21.0 | 25.0 | 18.7% |
Cash flow
|
|---|
| Capex | 11.2 | 2.7 | 31.2 | 139.3 | 4.6 | -96.7% |
Ratios
|
|---|
| Revenue growth | 1.3% | -20.8% | -4.0% | -0.3% | -14.5% | |
| EBITDA growth | -57.0% | 122.4% | -18.6% | 188.0% | -295.2% | |
| Gross Margin | 26.2% | 30.2% | 30.9% | 49.1% | 39.6% | -9.5% |
| EBITDA Margin | 4.0% | 11.2% | 9.5% | 27.3% | -62.4% | -89.7% |
| Net Income Margin | 5.8% | 13.0% | 7.2% | 9.2% | 438.9% | 429.7% |
| SG&A, % of revenue | 22.5% | 23.3% | 24.2% | 49.3% | 50.9% | 1.6% |
| CAPEX, % of revenue | 5.7% | 1.7% | 20.6% | 92.4% | 3.6% | -88.9% |
| ROIC | 0.7% | 2.3% | 1.7% | 6.1% | -10.2% | -16.3% |
| ROE | 3.3% | 5.6% | 2.9% | 3.4% | 79.9% | 76.5% |
| Net Debt/EBITDA | -15.8x | -8.0x | -9.5x | -2.0x | | 2.0x |
Revenue and profitability
The company's Revenue dropped on 14.5% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 89.7 pp from 27.3% to -62.4% in FY2015.
Gross Margin decreased on 9.5 pp from 49.1% to 39.6% in FY2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 49.3% to 50.9% in FY2015.
Net Income marign surged on 430 pp from 9.2% to 439% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Extrawell Pharmaceutical Holdings Ltd's CAPEX/Revenue was 3.6% in FY2015. The company's CAPEX/Revenue increased slightly on 1.8 pp from 1.7% in FY2012 to 3.6% in FY2015. Average CAPEX/Revenue for the last three years was 38.9%.
Return on investment
The company operates at negative ROIC (-10.22%) and low but positive ROE (79.91%). ROIC dropped on 16.3 pp from 6.1% to -10.2% in FY2015. ROE surged on 76.5 pp from 3.4% to 79.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Net Debt / EBITDA surged on 2.0x from -2.0x to in FY2015. Debt jumped on 18.7% in FY2015 while cash jumped on 46.8% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Extrawell Pharmaceutical Holdings Ltd benchmarking against other companies in Pharmaceuticals 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hong Kong Life Sciences and Technology Group Ltd ($8085) | | -10.0% | -45.4% | 1,636.5% | -52.9% |
| 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 (38 companies) | 15.1% | 14.3% | 13.7% | 16.3% | -52.9% |
|---|
| Extrawell Pharmaceutical Holdings Ltd ($858) | | -20.8% | -4.0% | -0.3% | -14.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 83.9% | 82.0% | 81.5% | 80.9% | |
| Consun Pharmaceutical Group Ltd ($1681) | 75.5% | 75.7% | 79.1% | 78.3% | |
| Sino Biopharmaceutical Ltd ($1177) | 78.5% | 78.5% | 77.5% | 76.4% | |
| China Health Group Inc ($8225) | 38.7% | 43.4% | 33.6% | 76.2% | |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 72.6% | 65.2% | 77.9% | 72.1% | |
| |
|---|
| Median (36 companies) | 38.0% | 39.1% | 37.2% | 46.8% | 50.1% |
|---|
| Extrawell Pharmaceutical Holdings Ltd ($858) | 26.2% | 30.2% | 30.9% | 49.1% | 39.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Resources Holdings Ltd ($899) | 3.5% | -80.8% | 25.1% | 113.7% | |
| Pak Fah Yeow International Ltd ($239) | 28.7% | 33.9% | 28.4% | 52.4% | |
| Real Nutriceutical Group Ltd ($2010) | 45.6% | 42.8% | 43.4% | 46.0% | |
| China Shineway Pharmaceutical Group Ltd ($2877) | 47.8% | 37.8% | 40.1% | 40.5% | |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 6.2% | 21.5% | 35.9% | 38.9% | |
| |
|---|
| Median (37 companies) | 17.4% | 19.6% | 18.8% | 20.0% | -7.3% |
|---|
| Extrawell Pharmaceutical Holdings Ltd ($858) | 4.0% | 11.2% | 9.5% | 27.3% | -62.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 0.2% | | 11,100.0% | 103.4% | |
| Asia Resources Holdings Ltd ($899) | 12.2% | 4.4% | 8.1% | 92.0% | |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 19.5% | 16.8% | 52.4% | 39.6% | |
| Hao Wen Holdings Ltd ($8019) | 6.4% | 30.0% | 2.3% | 38.2% | |
| Real Nutriceutical Group Ltd ($2010) | 19.4% | 22.9% | 29.5% | 22.6% | |
| |
|---|
| Median (37 companies) | 10.3% | 8.3% | 6.9% | 7.1% | 5.6% |
|---|
| Extrawell Pharmaceutical Holdings Ltd ($858) | 5.7% | 1.7% | 20.6% | 92.4% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 18.5% | 16.7% | 20.8% | 33.0% | |
| Sino Biopharmaceutical Ltd ($1177) | 19.9% | 26.2% | 26.8% | 26.5% | |
| Lee's Pharmaceutical Holdings Ltd ($950) | 31.3% | 26.1% | 22.0% | 22.4% | |
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 34.4% | 27.6% | 22.2% | 19.9% | |
| CSPC Pharmaceutical Group Ltd ($1093) | 9.9% | 14.5% | 12.8% | 18.1% | |
| |
|---|
| Median (38 companies) | 8.7% | 12.1% | 9.2% | 10.0% | -6.2% |
|---|
| Extrawell Pharmaceutical Holdings Ltd ($858) | 0.7% | 2.3% | 1.7% | 6.1% | -10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China NT Pharma Group Co Ltd ($1011) | 0.4x | | | 7.2x | |
| United Laboratories International Holdings Ltd/The ($3933) | 4.4x | 6.5x | 4.6x | 4.2x | |
| Lansen Pharmaceutical Holdings Ltd ($503) | 0.9x | 1.7x | 2.8x | 3.4x | |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 2.5x | 5.4x | 4.0x | 3.4x | |
| Shandong Xinhua Pharmaceutical Co Ltd ($719) | 1.4x | 3.5x | 3.4x | 2.8x | |
| |
|---|
| Median (30 companies) | 0.1x | 0.1x | 0.0x | -0.4x | 9.9x |
|---|
| Extrawell Pharmaceutical Holdings Ltd ($858) | -15.8x | -8.0x | -9.5x | -2.0x | |
