Dawnrays Pharmaceutical Holdings Ltd reports 47.3% Net Income growth and 3.1 pp EBITDA Margin growth from 38.5% to 41.5%
17/03/2016 • About Dawnrays Pharmaceutical Holdings Ltd (
$2348) • By InTwits
Dawnrays Pharmaceutical Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 41.5% in 2015 vs. 38.5% in 2014 vs. 18.8% in 2011
- EBITDA Margin is quite volatile: 41.5% in 2015, 38.5% in 2014, 23.8% in 2013, 20.3% in 2012, 18.8% in 2011
- Dawnrays Pharmaceutical Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.6%. At the same time it's in pair with industry average of 9.0%.
- CAPEX is quite volatile: 42.8 in 2015, 60.0 in 2014, 88.7 in 2013, 108 in 2012, 148 in 2011
- The company has highly profitable business model: ROIC is at 23.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dawnrays Pharmaceutical Holdings Ltd ($2348) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,081 | 857 | 915 | 784 | 985 | 25.7% |
| Gross Profit | 363 | 324 | 403 | 460 | 569 | 23.8% |
| SG&A | 157 | 157 | 173 | 159 | 168 | 5.6% |
| EBITDA | 204 | 174 | 218 | 301 | 409 | 35.6% |
| Net Income | 146 | 115 | 153 | 205 | 302 | 47.3% |
Balance Sheet
|
|---|
| Cash | 98 | 156 | 206 | 443 | 563 | 27.0% |
| Short Term Debt | 110 | 202 | 248 | 188 | 9 | -95.3% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 148 | 108 | 89 | 60 | 43 | -28.6% |
Ratios
|
|---|
| Revenue growth | -16.0% | -20.8% | 6.8% | -14.3% | 25.7% | |
| EBITDA growth | -12.9% | -14.7% | 25.2% | 38.6% | 35.6% | |
| Gross Margin | 33.6% | 37.9% | 44.1% | 58.7% | 57.8% | -0.9% |
| EBITDA Margin | 18.8% | 20.3% | 23.8% | 38.5% | 41.5% | 3.1% |
| Net Income Margin | 13.5% | 13.4% | 16.7% | 26.2% | 30.7% | 4.5% |
| SG&A, % of revenue | 14.5% | 18.3% | 18.9% | 20.3% | 17.1% | -3.2% |
| CAPEX, % of revenue | 13.7% | 12.6% | 9.7% | 7.6% | 4.3% | -3.3% |
| ROIC | 17.7% | 12.6% | 14.0% | 17.8% | 23.5% | 5.7% |
| ROE | 16.7% | 12.0% | 14.8% | 17.5% | 22.2% | 4.7% |
| Net Debt/EBITDA | 0.1x | 0.3x | 0.2x | -0.8x | -1.4x | -0.5x |
Revenue and profitability
Dawnrays Pharmaceutical Holdings Ltd's Revenue surged on 25.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 7.8% to 6.3% in 2015.
Gross Margin decreased slightly on 0.87 pp from 58.7% to 57.8% in 2015. SG&A as a % of Revenue decreased on 3.2 pp from 20.3% to 17.1% in 2015.
Net Income marign increased on 4.5 pp from 26.2% to 30.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Dawnrays Pharmaceutical Holdings Ltd's CAPEX/Revenue was 4.3% in 2015. Dawnrays Pharmaceutical Holdings Ltd showed decline in CAPEX/Revenue of 8.2 pp from 12.6% in 2012 to 4.3% in 2015. Average CAPEX/Revenue for the last three years was 7.2%.
Return on investment
The company operates at high and attractive ROIC (23.49%) and ROE (22.20%). ROIC increased on 5.7 pp from 17.8% to 23.5% in 2015. ROE increased on 4.7 pp from 17.5% to 22.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.4x and Debt / EBITDA is 0.0x. Net Debt / EBITDA dropped on 0.5x from -0.8x to -1.4x in 2015. Debt dropped on 95.3% in 2015 while cash jumped on 27.0% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Dawnrays Pharmaceutical Holdings Ltd benchmarking against other companies in Pharmaceuticals 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 |
|---|
| Hong Kong Life Sciences and Technology Group Ltd ($8085) | | -10.0% | -45.4% | 1,636.5% | -52.9% |
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | | 15.1% | -99.9% | 480.0% | -93.1% |
| United Gene High-Tech Group Ltd ($399) | | -71.8% | -60.5% | 196.0% | 14.2% |
| China Traditional Chinese Medicine Co Ltd ($570) | 3.1% | 22.3% | 35.2% | 90.0% | |
| Dragonite International Ltd ($329) | -8.8% | -10.5% | 13.5% | 64.8% | |
| |
|---|
| Median (40 companies) | 21.1% | 15.7% | 13.7% | 17.1% | -14.5% |
|---|
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | | -20.8% | 6.8% | -14.3% | 25.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 83.9% | 82.0% | 81.5% | 80.9% | |
| Consun Pharmaceutical Group Ltd ($1681) | 75.5% | 75.7% | 79.1% | 78.3% | |
| Sino Biopharmaceutical Ltd ($1177) | 78.5% | 78.5% | 77.5% | 76.4% | |
| China Health Group Inc ($8225) | 38.7% | 43.4% | 33.6% | 76.2% | |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 72.6% | 65.2% | 77.9% | 72.1% | 68.7% |
| |
|---|
| Median (38 companies) | 38.7% | 39.4% | 37.2% | 48.7% | 50.0% |
|---|
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 33.6% | 37.9% | 44.1% | 58.7% | 57.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Resources Holdings Ltd ($899) | 3.5% | -80.8% | 25.1% | 113.7% | |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 48.4% | 38.8% | 65.4% | 70.9% | |
| Pak Fah Yeow International Ltd ($239) | 28.7% | 33.9% | 28.4% | 52.4% | |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 29.7% | 41.3% | 45.4% | 47.5% | 49.1% |
| Real Nutriceutical Group Ltd ($2010) | 45.6% | 42.8% | 43.4% | 46.0% | |
| |
|---|
| Median (39 companies) | 17.4% | 20.1% | 18.8% | 20.8% | -5.5% |
|---|
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 18.8% | 20.3% | 23.8% | 38.5% | 41.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 0.2% | | 11,100.0% | 103.4% | 0.0% |
| Extrawell Pharmaceutical Holdings Ltd ($858) | 5.7% | 1.7% | 20.6% | 92.4% | 3.6% |
| Asia Resources Holdings Ltd ($899) | 12.2% | 4.4% | 8.1% | 92.0% | |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 19.5% | 16.8% | 52.4% | 39.6% | |
| Hao Wen Holdings Ltd ($8019) | 6.4% | 30.0% | 2.3% | 38.2% | |
| |
|---|
| Median (39 companies) | 10.3% | 8.3% | 8.1% | 7.4% | 2.7% |
|---|
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 13.7% | 12.6% | 9.7% | 7.6% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 18.5% | 16.7% | 20.8% | 33.0% | |
| Sino Biopharmaceutical Ltd ($1177) | 19.9% | 26.2% | 26.8% | 26.5% | |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | | 25.3% | 27.5% | 23.8% | 25.9% |
| Lee's Pharmaceutical Holdings Ltd ($950) | 31.3% | 26.1% | 22.0% | 22.4% | |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 14.3% | 13.7% | 18.3% | 22.0% | |
| |
|---|
| Median (40 companies) | 8.5% | 12.1% | 9.2% | 10.0% | -3.8% |
|---|
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 17.7% | 12.6% | 14.0% | 17.8% | 23.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China NT Pharma Group Co Ltd ($1011) | 0.4x | | | 7.2x | |
| United Laboratories International Holdings Ltd/The ($3933) | 4.4x | 6.5x | 4.6x | 4.2x | |
| Lansen Pharmaceutical Holdings Ltd ($503) | 0.9x | 1.7x | 2.8x | 3.4x | |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 2.5x | 5.4x | 4.0x | 3.4x | |
| Shandong Xinhua Pharmaceutical Co Ltd ($719) | 1.4x | 3.5x | 3.4x | 2.8x | |
| |
|---|
| Median (32 companies) | -0.8x | -0.4x | -0.5x | -0.6x | 4.1x |
|---|
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 0.1x | 0.3x | 0.2x | -0.8x | -1.4x |
