Golden Meditech Holdings Ltd reports 203% EBITDA decline and 61.5 pp EBITDA Margin decline from 29.8% to -31.7%
30/06/2015 • About Golden Meditech Holdings Ltd (
$801) • By InTwits
Golden Meditech Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Golden Meditech Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -7.7%
- EBITDA Margin is declining: -31.7% in FY2015 vs. 29.8% in FY2014 vs. 42.5% in FY2011
- EBITDA Margin is quite volatile: -31.7% in FY2015, 29.8% in FY2014, 37.9% in FY2013, 41.4% in FY2012, 42.5% in FY2011
- Golden Meditech Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.3%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 274 in FY2015, 296 in FY2014, 553 in FY2013, 113 in FY2012, 31.2 in FY2011
- The company has unprofitable business model: ROIC is at -7.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Golden Meditech Holdings Ltd ($801) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 328 | 896 | 1,079 | 1,085 | 1,051 | -3.1% |
| Gross Profit | 189 | 619 | 753 | 762 | 765 | 0.4% |
| SG&A | | 395 | 516 | 609 | 637 | 4.7% |
| EBITDA | 140 | 371 | 409 | 323 | -334 | -203.3% |
| Net Income | 343 | 153 | 136 | -429 | -806 | 87.8% |
Balance Sheet
|
|---|
| Cash | 771 | 1,747 | 2,101 | 2,712 | 3,959 | 46.0% |
| Short Term Debt | 121 | 706 | 553 | 767 | 204 | -73.4% |
| Long Term Debt | 546 | 3 | 926 | 78 | 752 | 858.8% |
Cash flow
|
|---|
| Capex | 31 | 113 | 553 | 296 | 274 | -7.4% |
Ratios
|
|---|
| Revenue growth | 14.9% | 173.1% | 20.4% | 0.6% | -3.1% | |
| EBITDA growth | 11.4% | 165.8% | 10.3% | -21.1% | -203.3% | |
| Gross Margin | 57.5% | 69.1% | 69.8% | 70.2% | 72.8% | 2.5% |
| EBITDA Margin | 42.5% | 41.4% | 37.9% | 29.8% | -31.7% | -61.5% |
| Net Income Margin | 104.6% | 17.1% | 12.6% | -39.5% | -76.7% | -37.1% |
| SG&A, % of revenue | | 44.1% | 47.8% | 56.1% | 60.6% | 4.5% |
| CAPEX, % of revenue | 9.5% | 12.7% | 51.2% | 27.3% | 26.1% | -1.2% |
| ROIC | 1.7% | 3.9% | 3.4% | 2.3% | -7.7% | -9.9% |
| ROE | 9.6% | 3.9% | 3.2% | -9.6% | -19.9% | -10.4% |
| Net Debt/EBITDA | -0.7x | -2.8x | -1.5x | -5.8x | | 5.8x |
Revenue and profitability
The company's Revenue decreased on 3.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 10.2% to 11.8% in 2015.
Gross Margin increased on 2.5 pp from 70.2% to 72.8% in FY2015. SG&A as a % of Revenue increased on 4.5 pp from 56.1% to 60.6% in FY2015.
Net Income marign dropped on 37.1 pp from -39.5% to -76.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 26.1% in FY2015. CAPEX/Revenue jumped on 13.4 pp from 12.7% in FY2012 to 26.1% in FY2015. Average CAPEX/Revenue for the last three years was 34.8%.
Return on investment
The company operates at negative ROIC (-7.66%) and ROE (-19.94%). ROIC decreased on 9.9 pp from 2.3% to -7.7% in FY2015. ROE dropped on 10.4 pp from -9.6% to -19.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is . Net Debt / EBITDA surged on 5.8x from -5.8x to in FY2015. Debt surged on 13.1% in FY2015 while cash jumped on 46.0% in FY2015.
Appendix 1: Peers in Healthcare-Products
Below you can find Golden Meditech 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microport Scientific Corp ($853) | 20.9% | 13.5% | 2.8% | 134.3% | |
| 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% | |
| Lifetech Scientific Corp ($1302) | 34.0% | 29.3% | 27.3% | 22.4% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 29.2% | 16.0% | 25.1% | 14.4% | |
| |
|---|
| Median (14 companies) | 21.1% | 6.4% | 11.5% | 10.8% | -30.6% |
|---|
| Golden Meditech Holdings Ltd ($801) | | 173.1% | 20.4% | 0.6% | -3.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | |
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.3% | 57.3% | 59.1% | 58.8% | |
| China Medical System Holdings Ltd ($867) | 56.6% | 58.8% | 54.5% | 56.2% | |
| |
|---|
| Median (14 companies) | 42.6% | 39.9% | 48.1% | 46.4% | 12.2% |
|---|
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | 72.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | |
| Lifetech Scientific Corp ($1302) | 17.2% | 31.6% | 24.5% | 23.4% | |
| |
|---|
| Median (14 companies) | 17.2% | 15.6% | 18.5% | 11.1% | -24.7% |
|---|
| Golden Meditech Holdings Ltd ($801) | 42.5% | 41.4% | 37.9% | 29.8% | -31.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | |
| Microport Scientific Corp ($853) | 18.5% | 31.6% | 27.9% | 15.0% | |
| Arts Optical International Hldgs ($1120) | 5.6% | 14.0% | 4.5% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 41.7% | 26.0% | 20.2% | 11.7% | |
| Hengan International Group Co Ltd ($1044) | 14.2% | 13.3% | 6.6% | 7.0% | |
| |
|---|
| Median (14 companies) | 7.2% | 3.7% | 5.9% | 4.8% | 3.3% |
|---|
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | 26.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | |
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | |
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | |
| |
|---|
| Median (14 companies) | 13.1% | 8.5% | 7.4% | 5.3% | -21.8% |
|---|
| Golden Meditech Holdings Ltd ($801) | 1.7% | 3.9% | 3.4% | 2.3% | -7.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Fortune Investments Holdings Ltd ($8116) | 18.2x | | 2.9x | 93.0x | |
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | |
| |
|---|
| Median (10 companies) | -1.3x | -1.0x | -1.5x | -0.9x | -2.9x |
|---|
| Golden Meditech Holdings Ltd ($801) | -0.7x | -2.8x | -1.5x | -5.8x | |
