China Health Group Inc reports 244% revenue growth in 2015 and 130 pp EBITDA Margin growth from -108% to 22.1%
21/03/2016 • About China Health Group Inc (
$8225) • By InTwits
China Health Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts: China Health Group Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -46.4%0.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Health Group Inc ($8225) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18.099 | 28.688 | 14.931 | 5.956 | 20.497 | 244.1% |
| Gross Profit | 7.005 | 12.452 | 5.021 | 4.541 | 15.517 | 241.7% |
| SG&A | | | | 12.737 | 14.055 | 10.3% |
| EBITDA | -36.678 | 6.254 | -8.582 | -6.411 | 4.538 | -170.8% |
| Net Income | -152.435 | 3.207 | -31.028 | 44.117 | -3.353 | -107.6% |
Balance Sheet
|
|---|
| Cash | 6.822 | 2.771 | 2.596 | 3.878 | 6.775 | 74.7% |
| Short Term Debt | 106.786 | 3.000 | 98.479 | 2.000 | 7.279 | 264.0% |
| Long Term Debt | 0.000 | 91.875 | 0.000 | 4.844 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | | | 0.001 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | -52.0% | 58.5% | -48.0% | -60.1% | 244.1% | |
| EBITDA growth | 93.3% | -117.1% | -237.2% | -25.3% | -170.8% | |
| Gross Margin | 38.7% | 43.4% | 33.6% | 76.2% | 75.7% | -0.5% |
| EBITDA Margin | -202.7% | 21.8% | -57.5% | -107.6% | 22.1% | 129.8% |
| Net Income Margin | -842.2% | 11.2% | -207.8% | 740.7% | -16.4% | -757.1% |
| SG&A, % of revenue | | | | 213.9% | 68.6% | -145.3% |
| CAPEX, % of revenue | | | 0.0% | 0.0% | 0.0% | 0.0% |
| ROIC | -32.9% | 14.6% | | | | 0.0% |
| Net Debt/EBITDA | | 14.7x | | | 0.1x | 0.1x |
Revenue and profitability
The company's Revenue jumped on 244% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 130 pp from -108% to 22.1% in 2015.
Gross Margin decreased slightly on 0.54 pp from 76.2% to 75.7% in 2015. SG&A as a % of Revenue dropped on 145 pp from 214% to 68.6% in 2015.
Net Income marign dropped on 757 pp from 741% to -16.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 1.6x. Net Debt / EBITDA jumped0.1x from to 0.1x in 2015. Debt increased on 6.4% in 2015 while cash surged on 74.7% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find China Health Group Inc benchmarking vs. other companies in Pharmaceuticals industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 (41 companies) | 18.0% | 13.4% | 13.5% | 16.8% | 7.6% |
|---|
| China Health Group Inc ($8225) | | 58.5% | -48.0% | -60.1% | 244.1% |
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% | |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 72.6% | 65.2% | 77.9% | 72.1% | 68.7% |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 67.0% | 70.9% | 68.4% | 71.4% | 70.2% |
| |
|---|
| Median (39 companies) | 37.6% | 38.5% | 37.8% | 48.3% | 47.4% |
|---|
| China Health Group Inc ($8225) | 38.7% | 43.4% | 33.6% | 76.2% | 75.7% |
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 (40 companies) | 17.7% | 19.0% | 20.2% | 21.4% | 17.1% |
|---|
| China Health Group Inc ($8225) | -202.7% | 21.8% | -57.5% | -107.6% | 22.1% |
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 (40 companies) | 10.3% | 8.3% | 8.9% | 7.5% | 3.1% |
|---|
| China Health Group Inc ($8225) | | | 0.0% | 0.0% | 0.0% |
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 (41 companies) | 9.1% | 12.2% | 9.3% | 11.1% | 6.7% |
|---|
| China Health Group Inc ($8225) | -32.9% | 14.6% | | | |
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 (34 companies) | -0.8x | -0.4x | -0.5x | -0.6x | -1.7x |
|---|
