CK Life Sciences International Holdings Inc CAPEX dropped on 39.4% in 2015 and Revenue decreased slightly on 0.70%
14/03/2016 • About CK Life Sciences International Holdings Inc (
$775) • By InTwits
CK Life Sciences International Holdings Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CK Life Sciences International Holdings Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's in pair with industry average of 21.2%.
- CAPEX is quite volatile: 297 in 2015, 490 in 2014, 286 in 2013, 173 in 2012, 189 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with high leverage: Net Debt/EBITDA is 6.0x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CK Life Sciences International Holdings Inc ($775) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,512 | 4,545 | 4,971 | 4,954 | 4,919 | -0.7% |
| Gross Profit | 1,180 | 1,553 | 1,742 | 1,740 | 1,742 | 0.1% |
| EBITDA | 326 | 448 | 498 | 528 | 557 | 5.4% |
| Net Income | 126 | 176 | 229 | 264 | 285 | 8.1% |
Balance Sheet
|
|---|
| Cash | 472 | 572 | 768 | 979 | 841 | -14.1% |
| Short Term Debt | 0 | 125 | 1,027 | 129 | 1,432 | 1,010.5% |
| Long Term Debt | 2,229 | 2,357 | 2,761 | 4,229 | 2,760 | -34.7% |
Cash flow
|
|---|
| Capex | 189 | 173 | 286 | 490 | 297 | -39.4% |
Ratios
|
|---|
| Revenue growth | 30.3% | 29.4% | 9.4% | -0.3% | -0.7% | |
| EBITDA growth | 1.6% | 37.7% | 11.0% | 6.2% | 5.4% | |
| Gross Margin | 33.6% | 34.2% | 35.0% | 35.1% | 35.4% | 0.3% |
| EBITDA Margin | 9.3% | 9.9% | 10.0% | 10.7% | 11.3% | 0.7% |
| Net Income Margin | 3.6% | 3.9% | 4.6% | 5.3% | 5.8% | 0.5% |
| CAPEX, % of revenue | 5.4% | 3.8% | 5.8% | 9.9% | 6.0% | -3.9% |
| ROIC | 3.0% | 4.2% | 4.1% | 4.3% | 4.8% | 0.5% |
| ROE | 2.3% | 3.3% | 4.4% | 5.5% | 6.4% | 1.0% |
| Net Debt/EBITDA | 5.4x | 4.3x | 6.1x | 6.4x | 6.0x | -0.4x |
Revenue and profitability
The company's Revenue decreased slightly on 0.70% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.65 pp from 10.7% to 11.3% in 2015.
Gross Margin showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CK Life Sciences International Holdings Inc had CAPEX/Revenue of 6.0%. CAPEX/Revenue increased on 2.2 pp from 3.8% in 2012 to 6.0% in 2015. Average CAPEX/Revenue for the last three years was 7.2%.CK Life Sciences International Holdings Inc invested a big chunk of EBITDA (53.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (4.77%) and ROE (6.45%). ROIC increased slightly on 0.52 pp from 4.3% to 4.8% in 2015. ROE increased slightly on 0.98 pp from 5.5% to 6.4% in 2015.
Leverage (Debt)
Debt level is 6.0x Net Debt / EBITDA and 7.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 6.4x to 6.0x in 2015. Debt decreased on 3.8% in 2015 while cash dropped on 14.1% in 2015.
Appendix 1: Peers in Biotechnology
Below we provide CK Life Sciences International Holdings Inc benchmarking against other companies in Biotechnology 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 |
|---|
| Essex Bio-technology Ltd ($1061) | 45.4% | 25.6% | 29.9% | 49.3% | |
| Bloomage BioTechnology Corp Ltd ($963) | 34.1% | 33.4% | 36.4% | 28.3% | |
| Uni-Bio Science Group Ltd ($690) | -48.2% | -25.7% | 46.1% | 23.1% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 44.9% | 73.7% | 78.9% | 13.2% | |
| Amgen Inc ($4332) | | 10.8% | 8.2% | 7.4% | 8.0% |
| |
|---|
| Median (8 companies) | 39.5% | 18.2% | 33.2% | 10.3% | 230.2% |
|---|
| CK Life Sciences International Holdings Inc ($775) | | 29.4% | 9.4% | -0.3% | -0.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 82.8% | 89.9% | 92.2% | 92.2% | |
| Uni-Bio Science Group Ltd ($690) | 62.1% | 67.2% | 79.5% | 80.0% | |
| Essex Bio-technology Ltd ($1061) | 90.5% | 91.2% | 89.6% | 79.3% | |
| Bloomage BioTechnology Corp Ltd ($963) | 73.2% | 69.3% | 79.9% | 78.0% | |
| Amgen Inc ($4332) | 84.4% | 81.5% | 82.1% | 78.0% | 80.5% |
| |
|---|
| Median (8 companies) | 68.8% | 68.3% | 79.7% | 78.0% | 64.8% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 33.6% | 34.2% | 35.0% | 35.1% | 35.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 56.2% | 46.8% | 39.2% | 45.2% | |
| Amgen Inc ($4332) | 34.5% | 38.6% | 38.3% | 41.3% | 48.8% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 35.5% | 33.4% | 29.0% | 31.5% | |
| Essex Bio-technology Ltd ($1061) | 18.0% | 19.0% | 21.9% | 21.3% | |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 6.0% | 6.9% | 7.4% | 9.1% | |
| |
|---|
| Median (8 companies) | 19.1% | 13.0% | 14.6% | 15.2% | -2,111.5% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 9.3% | 9.9% | 10.0% | 10.7% | 11.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Regenerative Medicine International Ltd ($8158) | 1,076.2% | 40,271.9% | 810.7% | 3,305.9% | 1,295.1% |
| Uni-Bio Science Group Ltd ($690) | 5.1% | 23.9% | 28.9% | 35.5% | |
| Bloomage BioTechnology Corp Ltd ($963) | 7.0% | 35.8% | 30.4% | 24.6% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 24.6% | 49.3% | 13.6% | 9.4% | |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 1.8% | 1.6% | 1.4% | 4.8% | |
| |
|---|
| Median (8 companies) | 8.4% | 29.9% | 12.0% | 7.1% | 648.9% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 5.4% | 3.8% | 5.8% | 9.9% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Essex Bio-technology Ltd ($1061) | 24.7% | 22.6% | 25.2% | 28.5% | |
| Bloomage BioTechnology Corp Ltd ($963) | 33.7% | 30.1% | 24.1% | 27.2% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 15.7% | 20.0% | 20.9% | 18.6% | |
| Amgen Inc ($4332) | 11.1% | 13.0% | 11.7% | 11.2% | 14.6% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 7.5% | 12.4% | 10.1% | 9.8% | |
| |
|---|
| Median (8 companies) | 11.3% | 12.7% | 10.9% | 10.5% | 1.4% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 3.0% | 4.2% | 4.1% | 4.3% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amgen Inc ($4332) | 2.7x | 3.5x | 4.0x | 3.3x | 2.6x |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 2.0x | 2.0x | 1.4x | 0.9x | |
| Essex Bio-technology Ltd ($1061) | -1.0x | 0.3x | -0.0x | -0.1x | |
| Bloomage BioTechnology Corp Ltd ($963) | -1.2x | -0.5x | -0.3x | -0.5x | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | -0.7x | -0.4x | -2.4x | -2.2x | |
| |
|---|
| Median (5 companies) | 0.7x | 1.1x | -0.0x | -0.1x | 2.6x |
|---|
| CK Life Sciences International Holdings Inc ($775) | 5.4x | 4.3x | 6.1x | 6.4x | 6.0x |
