Rui Kang Pharmaceutical Group Investments Ltd reports 157% Net Income growth and 117% Revenue growth
15/03/2016 • About Rui Kang Pharmaceutical Group Investments Ltd (
$8037) • By InTwits
Rui Kang Pharmaceutical Group Investments Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rui Kang Pharmaceutical Group Investments Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's in pair with industry average of 191.0%.
- CAPEX is quite volatile: 4.0 in 2015, 1.4 in 2014, 6.5 in 2013, 8.0 in 2012, 6.1 in 2011
- The company has highly profitable business model: ROIC is at 35.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rui Kang Pharmaceutical Group Investments Ltd ($8037) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 131.2 | 124.7 | 99.5 | 74.8 | 162.5 | 117.2% |
| SG&A | | | | 1.0 | 0.8 | -16.0% |
| EBITDA | 22.4 | 11.9 | -23.2 | -28.0 | 33.1 | -218.4% |
| Net Income | 4.0 | 4.8 | -26.6 | -32.2 | 18.4 | -157.0% |
Balance Sheet
|
|---|
| Cash | 34.3 | 22.9 | 20.7 | 37.2 | 125.0 | 235.8% |
| 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 | 6.1 | 8.0 | 6.5 | 1.4 | 4.0 | 194.6% |
Ratios
|
|---|
| Revenue growth | 6.0% | -5.0% | -20.2% | -24.8% | 117.2% | |
| EBITDA growth | 33.4% | -47.0% | -294.8% | 20.6% | -218.4% | |
| EBITDA Margin | 17.1% | 9.5% | -23.3% | -37.4% | 20.4% | 57.7% |
| Net Income Margin | 3.1% | 3.8% | -26.8% | -43.1% | 11.3% | 54.4% |
| SG&A, % of revenue | | | | 1.3% | 0.5% | -0.8% |
| CAPEX, % of revenue | 4.6% | 6.4% | 6.6% | 1.8% | 2.4% | 0.6% |
| ROIC | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% | 149.5% |
| ROE | 15.8% | 10.2% | -74.5% | -129.5% | 26.0% | 155.5% |
| Net Debt/EBITDA | -1.5x | -1.9x | | | -3.8x | -3.8x |
Revenue and profitability
Rui Kang Pharmaceutical Group Investments Ltd's Revenue surged on 117% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from -152% to -158% in 2015.
SG&A as a % of Revenue decreased slightly on 0.81 pp from 1.3% to 0.51% in 2015.
Net Income marign surged on 54.4 pp from -43.1% to 11.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.4% in 2015. CAPEX/Revenue decreased on 4.0 pp from 6.4% in 2012 to 2.4% in 2015. Average CAPEX/Revenue for the last three years was 3.6%.
Return on investment
The company operates at high and attractive ROIC (35.63%) and ROE (25.99%). ROIC surged on 149 pp from -114% to 35.6% in 2015. ROE jumped on 156 pp from -130% to 26.0% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 236% in 2015.
Appendix 1: Peers in Cosmetics/Personal Care
Below we provide Rui Kang Pharmaceutical Group Investments Ltd benchmarking against other companies in Cosmetics/Personal Care 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 |
|---|
| EDS Wellness Holdings Ltd ($8176) | -50.8% | -98.6% | 1,059.5% | 238.8% | |
| Vinda International Holdings Ltd ($3331) | | 26.4% | 12.8% | 17.5% | 21.4% |
| Natural Beauty Bio-Technology Ltd ($157) | 21.8% | -18.2% | -9.1% | 15.1% | |
| L'Occitane International SA ($973) | | 18.3% | 14.2% | 1.1% | 11.7% |
| Ming Fai International Holdings Ltd ($3828) | 35.9% | 14.3% | -0.1% | -3.4% | |
| |
|---|
| Median (7 companies) | 21.8% | 14.3% | 8.9% | 1.1% | 16.5% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | | -5.0% | -20.2% | -24.8% | 117.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 82.5% | 82.7% | 82.0% | 81.1% | 81.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 79.3% | 78.6% | 75.8% | 76.9% | |
| China Child Care Corp Ltd ($1259) | 42.4% | 45.9% | 47.3% | 47.5% | |
| EDS Wellness Holdings Ltd ($8176) | 23.6% | -72.8% | -43.6% | 39.8% | |
| BaWang International Group Holding Ltd ($1338) | 38.8% | 41.9% | 48.5% | 37.4% | |
| |
|---|
| Median (7 companies) | 38.8% | 41.9% | 47.3% | 39.8% | 56.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 31.4% | 38.3% | 25.3% | 29.4% | |
| L'Occitane International SA ($973) | 20.9% | 20.7% | 19.3% | 17.4% | 19.6% |
| Vinda International Holdings Ltd ($3331) | 13.9% | 16.1% | 14.2% | 15.3% | 13.7% |
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 8.0% | 7.4% | 8.6% | |
| |
|---|
| Median (7 companies) | 13.9% | 16.1% | 14.2% | 14.2% | 16.7% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 17.1% | 9.5% | -23.3% | -37.4% | 20.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 0.4% | 387.3% | 119.7% | 14.9% | |
| Vinda International Holdings Ltd ($3331) | 16.2% | 20.5% | 20.2% | 12.9% | 12.4% |
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | |
| L'Occitane International SA ($973) | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% |
| Natural Beauty Bio-Technology Ltd ($157) | 8.6% | 10.1% | 5.1% | 3.7% | |
| |
|---|
| Median (7 companies) | 5.5% | 10.1% | 7.6% | 5.8% | 8.4% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 4.6% | 6.4% | 6.6% | 1.8% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 31.6% | 23.2% | 21.4% | 16.9% | 19.6% |
| Natural Beauty Bio-Technology Ltd ($157) | 20.2% | 19.4% | 9.2% | 13.6% | |
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | |
| Vinda International Holdings Ltd ($3331) | 11.4% | 13.8% | 10.4% | 10.0% | 9.0% |
| Ming Fai International Holdings Ltd ($3828) | 6.9% | 7.2% | 4.3% | 5.6% | |
| |
|---|
| Median (7 companies) | 11.4% | 13.8% | 9.2% | 10.0% | 14.3% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.9x | 1.4x | 2.1x | 3.1x | 3.3x |
| L'Occitane International SA ($973) | -1.5x | -1.3x | -1.2x | -1.3x | -1.2x |
| Ming Fai International Holdings Ltd ($3828) | -1.2x | -1.5x | -2.5x | -2.1x | |
| Natural Beauty Bio-Technology Ltd ($157) | -3.0x | -2.3x | -4.6x | -3.9x | |
| China Child Care Corp Ltd ($1259) | -3.0x | -2.1x | -2.7x | -4.6x | |
| |
|---|
| Median (5 companies) | -1.5x | -1.5x | -2.5x | -2.1x | 1.0x |
|---|
