China Natural Investment Co Ltd revenue surged on 21.9% in 2015 while EBITDA Margin decreased on 2.5 pp from -7.2% to -9.6%
24/09/2015 • About China Natural Investment Co Ltd (
$8250) • By InTwits
China Natural Investment Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Natural Investment Co Ltd doesn't have a profitable business model yet: FY2015 ROIC is -5.6%
- The company operates at negative EBITDA Margin: -9.6%
- China Natural Investment Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -13.0%0
- China Natural Investment Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 50.7%. At the same time it's a lot of higher than industry average of 5.2%.
- CAPEX is quite volatile: 0.57 in FY2015, 5.7 in FY2014, 7.4 in FY2013, 18.8 in FY2012, 82.8 in FY2011
- The company has unprofitable business model: ROIC is at -5.6%
- It operates with high leverage: Net Debt/EBITDA is 2.1x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Natural Investment Co Ltd ($8250) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 41.9 | 51.3 | 44.2 | 269.4 | 328.5 | 21.9% |
| Gross Profit | 19.1 | 19.5 | 14.3 | 28.5 | 40.7 | 42.9% |
| SG&A | | 36.1 | 30.0 | 45.8 | 52.3 | 14.3% |
| EBITDA | -10.4 | -17.1 | -17.5 | -19.3 | -31.6 | 63.9% |
| Net Income | -1.9 | -16.2 | 11.7 | -3.6 | -63.9 | 1,695.7% |
Balance Sheet
|
|---|
| Cash | 68.9 | 32.8 | 121.0 | 62.0 | 100.9 | 62.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 82.8 | 18.8 | 7.4 | 5.7 | 0.6 | -90.0% |
Ratios
|
|---|
| Revenue growth | 790.8% | 22.3% | -13.8% | 509.5% | 21.9% | |
| EBITDA growth | -58.0% | 63.8% | 2.2% | 10.4% | 63.9% | |
| Gross Margin | 45.6% | 38.1% | 32.4% | 10.6% | 12.4% | 1.8% |
| EBITDA Margin | -24.9% | -33.3% | -39.5% | -7.2% | -9.6% | -2.5% |
| Net Income Margin | -4.6% | -31.6% | 26.4% | -1.3% | -19.4% | -18.1% |
| SG&A, % of revenue | | 70.4% | 68.0% | 17.0% | 15.9% | -1.1% |
| CAPEX, % of revenue | 197.7% | 36.8% | 16.8% | 2.1% | 0.2% | -1.9% |
| ROIC | -5.4% | -6.4% | -4.9% | -4.5% | -5.6% | -1.2% |
| ROE | -0.9% | -5.3% | 3.0% | -0.7% | -10.3% | -9.6% |
Revenue and profitability
China Natural Investment Co Ltd's Revenue surged on 21.9% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.5 pp from -7.2% to -9.6% in FY2015.
Gross Margin increased slightly on 1.8 pp from 10.6% to 12.4% in FY2015. SG&A as a % of Revenue decreased slightly on 1.1 pp from 17.0% to 15.9% in FY2015.
Net Income marign dropped on 18.1 pp from -1.3% to -19.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.17% in FY2015. CAPEX/Revenue dropped on 36.6 pp from 36.8% in FY2012 to 0.17% in FY2015. It's average CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at negative ROIC (-5.64%) and ROE (-10.32%). ROIC decreased slightly on 1.2 pp from -4.5% to -5.6% in FY2015. ROE decreased on 9.6 pp from -0.68% to -10.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 62.6% in FY2015.
Appendix 1: Peers in Healthcare-Services
Below you can find China Natural Investment Co Ltd benchmarking vs. other companies in Healthcare-Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 10.4% | 0.7% | 3.7% | 39.5% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 29.3% | 48.8% | 17.1% | 35.9% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | | 25.4% | 10.1% | 11.0% | -20.6% |
| SkyOcean International Holdings Ltd ($593) | 31.9% | 15.7% | -7.4% | -30.5% | |
| |
|---|
| Median (4 companies) | 29.3% | 20.6% | 6.9% | 23.5% | -20.6% |
|---|
| China Natural Investment Co Ltd ($8250) | | 22.3% | -13.8% | 509.5% | 21.9% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 33.6% | 34.7% | 33.9% | 32.5% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 24.1% | 24.4% | 24.0% | 24.7% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 13.0% | 12.8% | 11.8% | 12.0% | 15.6% |
| |
|---|
| Median (3 companies) | 24.1% | 24.4% | 24.0% | 24.7% | 15.6% |
|---|
| China Natural Investment Co Ltd ($8250) | 45.6% | 38.1% | 32.4% | 10.6% | 12.4% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 21.8% | 26.5% | 26.5% | 25.8% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 5.9% | 5.5% | 4.6% | 5.2% | 2.1% |
| Town Health International Medical Group Ltd ($3886) | 28.6% | -135.5% | -44.4% | -0.3% | |
| SkyOcean International Holdings Ltd ($593) | 18.9% | 28.4% | 31.5% | -151.1% | |
| |
|---|
| Median (4 companies) | 20.4% | 16.0% | 15.6% | 2.5% | 2.1% |
|---|
| China Natural Investment Co Ltd ($8250) | -24.9% | -33.3% | -39.5% | -7.2% | -9.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 23.5% | 5.0% | 48.6% | 16.8% | |
| SkyOcean International Holdings Ltd ($593) | 1.7% | 0.9% | 1.3% | 4.8% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 6.7% | 3.7% | 2.4% | 3.0% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 0.3% | 0.9% | 0.5% | 0.5% | 1.2% |
| |
|---|
| Median (4 companies) | 4.2% | 2.3% | 1.8% | 3.9% | 1.2% |
|---|
| China Natural Investment Co Ltd ($8250) | 197.7% | 36.8% | 16.8% | 2.1% | 0.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 11.9% | 17.9% | 14.3% | 14.6% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 6.7% | 7.5% | 6.5% | 8.1% | 2.2% |
| Town Health International Medical Group Ltd ($3886) | 3.8% | -29.7% | -10.9% | -2.3% | |
| SkyOcean International Holdings Ltd ($593) | 1.5% | 2.8% | 2.4% | -5.2% | |
| |
|---|
| Median (4 companies) | 5.2% | 5.2% | 4.5% | 2.9% | 2.2% |
|---|
| China Natural Investment Co Ltd ($8250) | -5.4% | -6.4% | -4.9% | -4.5% | -5.6% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 2.3x | 1.7x | 1.9x | 0.9x | 3.5x |
| Phoenix Healthcare Group Co Ltd ($1515) | -1.2x | 0.6x | -3.8x | -3.2x | |
| |
|---|
| Median (2 companies) | -0.2x | 0.6x | -0.8x | -1.1x | 3.5x |
|---|
