Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd reports 23.1% revenue growth in 2015 and 2.1 pp EBITDA Margin decline from 31.5% to 29.3%
18/03/2016 • About Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd (
$1349) • By InTwits
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd is a fast growth stock: 2015 revenue growth was 23.1%, 5 year revenue CAGR was 44.4% at 2015 ROIC 17.6%
- Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.7%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 38.3 in 2015, 44.1 in 2014, 56.7 in 2013, 115 in 2012, 33.0 in 2011
- The company has highly profitable business model: ROIC is at 17.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 133.9 | 232.5 | 415.9 | 470.9 | 579.5 | 23.1% |
| Gross Profit | 110.9 | 209.0 | 383.5 | 434.1 | 529.4 | 22.0% |
| SG&A | 72.0 | 143.4 | 252.8 | 280.7 | 337.9 | 20.4% |
| EBITDA | 47.5 | 77.6 | 120.5 | 148.2 | 170.0 | 14.7% |
| Net Income | 30.8 | 53.2 | 87.2 | 118.3 | 127.7 | 8.0% |
Balance Sheet
|
|---|
| Cash | 110.1 | 158.3 | 324.9 | 356.1 | 446.0 | 25.2% |
| Short Term Debt | 28.3 | 86.5 | 15.0 | 25.0 | 125.0 | 400.0% |
| Long Term Debt | 50.0 | 40.0 | 25.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 33.0 | 114.6 | 56.7 | 44.1 | 38.3 | -13.2% |
Ratios
|
|---|
| Revenue growth | 44.9% | 73.7% | 78.9% | 13.2% | 23.1% | |
| EBITDA growth | -856.9% | 63.4% | 55.3% | 23.0% | 14.7% | |
| Gross Margin | 82.8% | 89.9% | 92.2% | 92.2% | 91.4% | -0.8% |
| EBITDA Margin | 35.5% | 33.4% | 29.0% | 31.5% | 29.3% | -2.1% |
| Net Income Margin | 23.0% | 22.9% | 21.0% | 25.1% | 22.0% | -3.1% |
| SG&A, % of revenue | 53.8% | 61.7% | 60.8% | 59.6% | 58.3% | -1.3% |
| CAPEX, % of revenue | 24.6% | 49.3% | 13.6% | 9.4% | 6.6% | -2.8% |
| ROIC | 15.7% | 20.0% | 20.9% | 18.6% | 17.6% | -1.0% |
| ROE | 19.9% | 27.0% | 23.1% | 20.0% | 18.5% | -1.5% |
| Net Debt/EBITDA | -0.7x | -0.4x | -2.4x | -2.2x | -1.9x | 0.3x |
Revenue and profitability
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd's Revenue surged on 23.1% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 31.5% to 29.3% in 2015.
Gross Margin decreased slightly on 0.81 pp from 92.2% to 91.4% in 2015. SG&A as a % of Revenue decreased slightly on 1.3 pp from 59.6% to 58.3% in 2015.
Net Income marign decreased on 3.1 pp from 25.1% to 22.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.6% in 2015. CAPEX/Revenue dropped on 42.7 pp from 49.3% in 2012 to 6.6% in 2015. For the last three years the average CAPEX/Revenue was 9.9%.
Return on investment
The company operates at good ROIC (17.56%) and ROE (18.46%). ROIC decreased slightly on 1.0 pp from 18.6% to 17.6% in 2015. ROE decreased slightly on 1.5 pp from 20.0% to 18.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.9x and Debt / EBITDA is 0.7x. Net Debt / EBITDA jumped on 0.3x from -2.2x to -1.9x in 2015. Debt jumped on 400% in 2015 while cash jumped on 25.2% in 2015.
Appendix 1: Peers in Biotechnology
Below we provide Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd 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) | | 25.6% | 29.9% | 49.3% | 26.2% |
| 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% | |
| Amgen Inc ($4332) | | 10.8% | 8.2% | 7.4% | 8.0% |
| CK Life Sciences International Holdings Inc ($775) | | 29.4% | 9.4% | -0.3% | -0.7% |
| |
|---|
| Median (8 companies) | 26.6% | 18.2% | 19.6% | 3.5% | 17.1% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | | 73.7% | 78.9% | 13.2% | 23.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 81.0% |
| 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% |
| CK Life Sciences International Holdings Inc ($775) | 33.6% | 34.2% | 35.0% | 35.1% | 35.4% |
| |
|---|
| Median (8 companies) | 63.2% | 50.7% | 57.3% | 56.5% | 64.8% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 82.8% | 89.9% | 92.2% | 92.2% | 91.4% |
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% |
| Essex Bio-technology Ltd ($1061) | 18.0% | 19.0% | 21.9% | 21.3% | 22.6% |
| CK Life Sciences International Holdings Inc ($775) | 9.3% | 9.9% | 10.0% | 10.7% | 11.3% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 6.0% | 6.9% | 7.4% | 9.1% | |
| |
|---|
| Median (8 companies) | 13.6% | 8.4% | 8.7% | 9.9% | 17.0% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 35.5% | 33.4% | 29.0% | 31.5% | 29.3% |
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% | |
| CK Life Sciences International Holdings Inc ($775) | 5.4% | 3.8% | 5.8% | 9.9% | 6.0% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 1.8% | 1.6% | 1.4% | 4.8% | |
| |
|---|
| Median (8 companies) | 6.2% | 20.8% | 8.1% | 7.3% | 4.4% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 24.6% | 49.3% | 13.6% | 9.4% | 6.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Essex Bio-technology Ltd ($1061) | 24.7% | 22.6% | 25.2% | 28.5% | 31.4% |
| Bloomage BioTechnology Corp Ltd ($963) | 33.7% | 30.1% | 24.1% | 27.2% | |
| 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% | |
| CK Life Sciences International Holdings Inc ($775) | 3.0% | 4.2% | 4.1% | 4.3% | 4.8% |
| |
|---|
| Median (8 companies) | 9.3% | 8.3% | 7.1% | 7.0% | 9.7% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 15.7% | 20.0% | 20.9% | 18.6% | 17.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CK Life Sciences International Holdings Inc ($775) | 5.4x | 4.3x | 6.1x | 6.4x | 6.0x |
| 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 | -0.1x |
| Bloomage BioTechnology Corp Ltd ($963) | -1.2x | -0.5x | -0.3x | -0.5x | |
| |
|---|
| Median (5 companies) | 2.1x | 2.7x | 1.4x | 0.9x | 2.6x |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | -0.7x | -0.4x | -2.4x | -2.2x | -1.9x |
