China Renji Medical Group Ltd/Hong Kong EBITDA dropped on 1,154% in 2015 while Revenue jumped on 49.0%
15/03/2016 • About China Renji Medical Group Ltd/Hong Kong (
$648) • By InTwits
China Renji Medical Group Ltd/Hong Kong reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Renji Medical Group Ltd/Hong Kong doesn't have a profitable business model yet: 2015 ROIC is -15.8%
- EBITDA Margin is quite volatile: -100.9% in 2015, 14.3% in 2014, 61.1% in 2013, 55.2% in 2012, 56.6% in 2011
- China Renji Medical Group Ltd/Hong Kong has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.1%. At the same time it's a lot of higher than industry average of 11.2%.
- CAPEX is quite volatile: 7.7 in 2015, 2.7 in 2014, 6.1 in 2013, 8.3 in 2012, 22.2 in 2011
- The company has unprofitable business model: ROIC is at -15.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Renji Medical Group Ltd/Hong Kong ($648) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 152.3 | 134.4 | 111.0 | 85.4 | 127.2 | 49.0% |
| Gross Profit | 83.6 | 94.1 | 74.6 | 67.1 | 28.4 | -57.7% |
| SG&A | | | | 66.2 | 191.5 | 189.1% |
| EBITDA | 86.1 | 74.2 | 67.8 | 12.2 | -128.3 | -1,154.4% |
| Net Income | -266.9 | 61.3 | -122.7 | -61.1 | -436.5 | 614.0% |
Balance Sheet
|
|---|
| Cash | 49.7 | 116.0 | 83.8 | 178.1 | 91.7 | -48.5% |
| Short Term Debt | 106.0 | 94.7 | 78.6 | 152.9 | 129.8 | -15.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 100.6 | 166.5 | 65.4% |
Cash flow
|
|---|
| Capex | 22.2 | 8.3 | 6.1 | 2.7 | 7.7 | 178.9% |
Ratios
|
|---|
| Revenue growth | -14.2% | -11.7% | -17.5% | -23.0% | 49.0% | |
| EBITDA growth | -28.7% | -13.8% | -8.7% | -82.0% | -1,154.4% | |
| Gross Margin | 54.9% | 70.0% | 67.3% | 78.6% | 22.3% | -56.3% |
| EBITDA Margin | 56.6% | 55.2% | 61.1% | 14.3% | -100.9% | -115.1% |
| Net Income Margin | -175.2% | 45.6% | -110.6% | -71.6% | -343.1% | -271.5% |
| SG&A, % of revenue | | | | 77.6% | 150.5% | 72.9% |
| CAPEX, % of revenue | 14.6% | 6.1% | 5.5% | 3.2% | 6.0% | 2.8% |
| ROIC | 3.9% | 8.0% | 6.0% | 0.3% | -15.8% | -16.1% |
| ROE | -48.3% | 13.2% | -27.1% | -14.2% | -105.1% | -90.9% |
| Net Debt/EBITDA | 0.7x | -0.3x | -0.1x | 6.2x | | -6.2x |
Revenue and profitability
China Renji Medical Group Ltd/Hong Kong's Revenue surged on 49.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 5.3 pp from -27.8% to -22.6% in FY2015.
Gross Margin dropped on 56.3 pp from 78.6% to 22.3% in 2015. SG&A as a % of Revenue surged on 72.9 pp from 77.6% to 151% in 2015.
Net Income marign dropped on 271 pp from -71.6% to -343% in 2015.
Capital expenditures (CAPEX) and working capital investments
China Renji Medical Group Ltd/Hong Kong's CAPEX/Revenue was 6.0% in 2015. China Renji Medical Group Ltd/Hong Kong showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 4.9%.
Return on investment
The company operates at negative ROIC (-15.84%) and ROE (-105.10%). ROIC dropped on 16.1 pp from 0.29% to -15.8% in 2015. ROE dropped on 90.9 pp from -14.2% to -105% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is . Net Debt / EBITDA dropped on 6.2x from 6.2x to in 2015. Debt jumped on 16.9% in 2015 while cash dropped on 48.5% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find China Renji Medical Group Ltd/Hong Kong benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Kong Sun Holdings Ltd ($295) | -18.7% | -88.3% | 5.1% | 7,067.0% | |
| Goldin Properties Holdings Ltd ($283) | | | 126.0% | 2,065.8% | -79.6% |
| China Primary Energy Holdings Ltd ($8117) | -43.1% | -56.3% | -23.6% | 195.4% | |
| Carnival Group International Holdings Ltd ($996) | | | | 159.1% | |
| 21 Holdings Ltd ($1003) | 20.3% | -57.4% | -12.4% | 106.4% | |
| |
|---|
| Median (42 companies) | 11.6% | 12.2% | 4.9% | 15.7% | 0.5% |
|---|
| China Renji Medical Group Ltd/Hong Kong ($648) | | -11.7% | -17.5% | -23.0% | 49.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | |
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| Century Legend Holdings Ltd ($79) | 68.5% | 70.1% | 72.3% | 71.0% | |
| Orient Victory China Holdings Ltd ($265) | 68.5% | 69.4% | 61.6% | 67.4% | |
| |
|---|
| Median (39 companies) | 27.9% | 32.9% | 34.6% | 30.8% | 39.0% |
|---|
| China Renji Medical Group Ltd/Hong Kong ($648) | 54.9% | 70.0% | 67.3% | 78.6% | 22.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | |
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Magnificent Estates ($201) | 42.1% | 45.5% | 47.8% | 53.0% | 40.6% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | |
| |
|---|
| Median (44 companies) | 5.2% | 1.7% | 1.9% | 5.6% | 8.3% |
|---|
| China Renji Medical Group Ltd/Hong Kong ($648) | 56.6% | 55.2% | 61.1% | 14.3% | -100.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Far East Holdings International Ltd ($36) | 2.7% | 0.1% | 13.2% | 422.1% | |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | |
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| New Century Group Hong Kong Ltd ($234) | 1.0% | 97.2% | 1.0% | 142.7% | 32.2% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| |
|---|
| Median (44 companies) | 4.1% | 2.2% | 3.6% | 7.0% | 13.2% |
|---|
| China Renji Medical Group Ltd/Hong Kong ($648) | 14.6% | 6.1% | 5.5% | 3.2% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Holdings Group ($1661) | 62.7% | 68.6% | 42.1% | 28.8% | |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | |
| Hutchison Whampoa Ltd ($13) | 3.3% | 3.7% | 4.2% | 8.1% | |
| Code Agriculture Holdings Ltd ($8153) | -0.1% | 2.4% | -3.3% | 7.9% | -6.2% |
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | |
| |
|---|
| Median (44 companies) | 0.3% | -0.2% | -0.2% | 0.8% | 0.4% |
|---|
| China Renji Medical Group Ltd/Hong Kong ($648) | 3.9% | 8.0% | 6.0% | 0.3% | -15.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| Carnival Group International Holdings Ltd ($996) | | | | 23.7x | |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| Southeast Asia Properties & Finance Ltd ($252) | 6.8x | 6.7x | 5.7x | 9.2x | 4.3x |
| Code Agriculture Holdings Ltd ($8153) | 24.3x | 11.9x | 42.8x | 8.7x | |
| |
|---|
| Median (26 companies) | 3.1x | 2.6x | 3.1x | 2.9x | 3.7x |
|---|
| China Renji Medical Group Ltd/Hong Kong ($648) | 0.7x | -0.3x | -0.1x | 6.2x | |
