Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd Net Income increased on 8.9% in 2015 and EBITDA Margin showed almost no change
18/03/2016 • About Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd (
$874) • By InTwits
Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 21.1%.
- CAPEX is quite volatile: 515 in 2015, 357 in 2014, 350 in 2013, 170 in 2012, 58.9 in 2011
- The company has highly profitable business model: ROIC is at 12.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,396 | 11,954 | 17,460 | 18,662 | 18,955 | 1.6% |
| Gross Profit | 1,353 | 3,723 | 5,654 | 6,477 | 6,755 | 4.3% |
| SG&A | 1,060 | 2,742 | 4,363 | 4,867 | 5,152 | 5.9% |
| EBITDA | 259 | 837 | 1,101 | 1,380 | 1,385 | 0.4% |
| Net Income | 288 | 729 | 980 | 1,194 | 1,300 | 8.9% |
Balance Sheet
|
|---|
| Cash | 356 | 1,114 | 1,908 | 3,050 | 3,838 | 25.8% |
| Short Term Debt | 150 | 757 | 640 | 917 | 922 | 0.6% |
| Long Term Debt | 0 | 0 | 9 | 0 | 40 | |
Cash flow
|
|---|
| Capex | 59 | 170 | 350 | 357 | 515 | 44.5% |
Ratios
|
|---|
| Revenue growth | 21.1% | 121.6% | 46.1% | 6.9% | 1.6% | |
| EBITDA growth | -10.8% | 223.8% | 31.6% | 25.2% | 0.4% | |
| Gross Margin | 25.1% | 31.1% | 32.4% | 34.7% | 35.6% | 0.9% |
| EBITDA Margin | 4.8% | 7.0% | 6.3% | 7.4% | 7.3% | -0.1% |
| Net Income Margin | 5.3% | 6.1% | 5.6% | 6.4% | 6.9% | 0.5% |
| SG&A, % of revenue | 19.7% | 22.9% | 25.0% | 26.1% | 27.2% | 1.1% |
| CAPEX, % of revenue | 1.1% | 1.4% | 2.0% | 1.9% | 2.7% | 0.8% |
| ROIC | 4.0% | 12.3% | 12.8% | 14.3% | 12.9% | -1.3% |
| ROE | 7.9% | 15.6% | 15.8% | 16.4% | 16.1% | -0.3% |
| Net Debt/EBITDA | -0.8x | -0.4x | -1.1x | -1.5x | -2.1x | -0.5x |
Revenue and profitability
The company's Revenue increased slightly on 1.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 27.0% to 21.1% in 2015.
Gross Margin increased slightly on 0.93 pp from 34.7% to 35.6% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 26.1% to 27.2% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.7%. Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd showed small growth in CAPEX/Revenue of 1.3 pp from 1.4% in 2012 to 2.7% in 2015. Average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at good ROIC (12.92%) and ROE (16.10%). ROIC decreased slightly on 1.3 pp from 14.3% to 12.9% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -2.1x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from -1.5x to -2.1x in 2015. Debt increased on 4.9% in 2015 while cash jumped on 25.8% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Guangzhou Baiyunshan Pharmaceutical Holdings Co 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) | 14.9% | 14.3% | 13.5% | 17.1% | 4.6% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | | 121.6% | 46.1% | 6.9% | 1.6% |
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% | 38.3% | 50.0% | 50.0% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 25.1% | 31.1% | 32.4% | 34.7% | 35.6% |
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) | 18.2% | 20.7% | 19.8% | 21.4% | 17.3% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 4.8% | 7.0% | 6.3% | 7.4% | 7.3% |
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) | 10.9% | 8.8% | 9.7% | 7.6% | 3.3% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 1.1% | 1.4% | 2.0% | 1.9% | 2.7% |
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) | 9.1% | 12.1% | 9.2% | 10.0% | 0.3% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 4.0% | 12.3% | 12.8% | 14.3% | 12.9% |
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) | -0.4x | 0.0x | -0.2x | -0.6x | -1.6x |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | -0.8x | -0.4x | -1.1x | -1.5x | -2.1x |
