Tong Ren Tang Technologies Co Ltd EBITDA jumped on 23.7% in 2015 and Revenue surged on 19.3%
18/03/2016 • About Tong Ren Tang Technologies Co Ltd (
$1666) • By InTwits
Tong Ren Tang Technologies Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tong Ren Tang Technologies Co Ltd is a fast growth stock: 2015 revenue growth was 19.3%, 5 year revenue CAGR was 20.4% at 2015 ROIC 17.7%
- Tong Ren Tang Technologies Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 8.9%.
- CAPEX is quite volatile: 39.6 in 2015, 63.6 in 2014, 141 in 2013, 221 in 2012, 222 in 2011
- The company has highly profitable business model: ROIC is at 17.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tong Ren Tang Technologies Co Ltd ($1666) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,936 | 2,439 | 2,911 | 3,341 | 3,987 | 19.3% |
| Gross Profit | 937 | 1,237 | 1,441 | 1,615 | 1,991 | 23.3% |
| SG&A | 587 | 750 | 826 | 904 | 1,110 | 22.9% |
| EBITDA | 373 | 520 | 653 | 771 | 954 | 23.7% |
| Net Income | 255 | 330 | 390 | 462 | 540 | 16.9% |
Balance Sheet
|
|---|
| Cash | 681 | 841 | 2,367 | 2,151 | 2,259 | 5.1% |
| Short Term Debt | 125 | 125 | 155 | 100 | 182 | 81.5% |
| Long Term Debt | 0 | 0 | 39 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 167 | 114 | 200 | 277 | 177 | -36.1% |
Ratios
|
|---|
| Revenue growth | 22.6% | 26.0% | 19.3% | 14.8% | 19.3% | |
| EBITDA growth | 21.9% | 39.3% | 25.6% | 18.0% | 23.7% | |
| Gross Margin | 48.4% | 50.7% | 49.5% | 48.3% | 49.9% | 1.6% |
| EBITDA Margin | 19.3% | 21.3% | 22.4% | 23.1% | 23.9% | 0.9% |
| Net Income Margin | 13.2% | 13.5% | 13.4% | 13.8% | 13.6% | -0.3% |
| SG&A, % of revenue | 30.3% | 30.8% | 28.4% | 27.0% | 27.8% | 0.8% |
| CAPEX, % of revenue | 8.6% | 4.7% | 6.9% | 8.3% | 4.4% | -3.9% |
| ROIC | 17.2% | 21.4% | 18.4% | 16.2% | 17.7% | 1.5% |
| ROE | 15.5% | 18.1% | 15.0% | 13.6% | 14.4% | 0.8% |
| Net Debt/EBITDA | -1.5x | -1.4x | -3.3x | -2.7x | -2.2x | 0.5x |
Revenue and profitability
Tong Ren Tang Technologies Co Ltd's Revenue jumped on 19.3% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.85 pp from 23.1% to 23.9% in 2015.
Gross Margin increased slightly on 1.6 pp from 48.3% to 49.9% in 2015. SG&A as a % of Revenue increased slightly on 0.80 pp from 27.0% to 27.8% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Tong Ren Tang Technologies Co Ltd had CAPEX/Revenue of 4.4%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 6.5%.
Return on investment
The company operates at good ROIC (17.71%) and ROE (14.40%). ROIC increased slightly on 1.5 pp from 16.2% to 17.7% in 2015. ROE increased slightly on 0.82 pp from 13.6% to 14.4% in 2015.
Leverage (Debt)
Debt level is -2.2x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from -2.7x to -2.2x in 2015. Debt surged on 82.0% in 2015 while cash increased on 5.1% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Tong Ren Tang Technologies 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% | -0.3% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | | 26.0% | 19.3% | 14.8% | 19.3% |
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) | 38.0% | 39.1% | 37.2% | 50.0% | 49.5% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 48.4% | 50.7% | 49.5% | 48.3% | 49.9% |
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% | 19.6% | 18.8% | 20.8% | 9.0% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 19.3% | 21.3% | 22.4% | 23.1% | 23.9% |
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% | 7.4% | 2.9% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 8.6% | 4.7% | 6.9% | 8.3% | 4.4% |
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% | 0.3% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 17.2% | 21.4% | 18.4% | 16.2% | 17.7% |
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 |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | -1.5x | -1.4x | -3.3x | -2.7x | -2.2x |
