Shandong Luoxin Pharmaceutical Group Stock Co Ltd revenue jumped on 30.5% in 2015 while EBITDA Margin decreased slightly on 2.0 pp from 18.6% to 16.6%
22/03/2016 • About Shandong Luoxin Pharmaceutical Group Stock Co Ltd (
$8058) • By InTwits
Shandong Luoxin Pharmaceutical Group Stock Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shandong Luoxin Pharmaceutical Group Stock Co Ltd is a fast growth stock: 2015 revenue growth was 30.5%, 5 year revenue CAGR was 21.9% at 2015 ROIC 20.8%
- EBITDA Margin is declining: 16.6% in 2015 vs. 18.6% in 2014 vs. 31.8% in 2011
- Shandong Luoxin Pharmaceutical Group Stock Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's in pair with industry average of 8.9%.
- CAPEX is quite volatile: 184 in 2015, 235 in 2014, 124 in 2013, 141 in 2012, 88.8 in 2011
- The company has highly profitable business model: ROIC is at 20.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,627 | 2,228 | 2,529 | 2,767 | 3,611 | 30.5% |
| Gross Profit | 1,003 | 1,502 | 1,645 | 1,893 | 2,477 | 30.9% |
| SG&A | | | 137 | 211 | 363 | 72.2% |
| EBITDA | 517 | 522 | 489 | 513 | 598 | 16.5% |
| Net Income | 427 | 440 | 429 | 444 | 493 | 11.1% |
Balance Sheet
|
|---|
| Cash | 893 | 335 | 187 | 161 | 605 | 277.1% |
| Short Term Debt | 34 | 102 | 6 | 29 | 0 | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 89 | 141 | 124 | 235 | 184 | -22.0% |
Ratios
|
|---|
| Revenue growth | 21.2% | 37.0% | 13.5% | 9.4% | 30.5% | |
| EBITDA growth | 11.6% | 1.0% | -6.3% | 4.9% | 16.5% | |
| Gross Margin | 61.6% | 67.4% | 65.0% | 68.4% | 68.6% | 0.2% |
| EBITDA Margin | 31.8% | 23.4% | 19.3% | 18.6% | 16.6% | -2.0% |
| Net Income Margin | 26.2% | 19.7% | 16.9% | 16.0% | 13.6% | -2.4% |
| SG&A, % of revenue | | | 5.4% | 7.6% | 10.1% | 2.4% |
| CAPEX, % of revenue | 5.5% | 6.3% | 4.9% | 8.5% | 5.1% | -3.4% |
| ROIC | 34.4% | 27.6% | 22.2% | 19.9% | 20.8% | 0.9% |
| ROE | 32.3% | 26.2% | 21.9% | 20.0% | 19.7% | -0.3% |
| Net Debt/EBITDA | -1.7x | -0.4x | -0.4x | -0.3x | -1.0x | -0.8x |
Revenue and profitability
Shandong Luoxin Pharmaceutical Group Stock Co Ltd's Revenue surged on 30.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 44.2 pp from 9.6% to -34.6% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 2.4 pp from 7.6% to 10.1% in 2015.
Net Income marign decreased on 2.4 pp from 16.0% to 13.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.1%. Shandong Luoxin Pharmaceutical Group Stock Co Ltd's CAPEX/Revenue decreased slightly on 1.2 pp from 6.3% in 2012 to 5.1% in 2015. For the last three years the average CAPEX/Revenue was 6.2%.
Return on investment
The company operates at high and attractive ROIC (20.85%) while ROE is a bit lower (19.73%). ROIC increased slightly on 0.90 pp from 19.9% to 20.8% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash jumped on 277% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Shandong Luoxin Pharmaceutical Group Stock Co Ltd 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) | | 22.3% | 35.2% | 90.0% | 40.0% |
| Dragonite International Ltd ($329) | -8.8% | -10.5% | 13.5% | 64.8% | |
| |
|---|
| Median (41 companies) | 25.8% | 13.4% | 13.5% | 16.8% | 11.3% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | | 37.0% | 13.5% | 9.4% | 30.5% |
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% | 75.7% |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 72.6% | 65.2% | 77.9% | 72.1% | 68.7% |
| |
|---|
| Median (39 companies) | 37.6% | 38.5% | 35.9% | 48.3% | 48.9% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 61.6% | 67.4% | 65.0% | 68.4% | 68.6% |
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 (40 companies) | 17.2% | 19.0% | 20.2% | 21.4% | 21.0% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 31.8% | 23.4% | 19.3% | 18.6% | 16.6% |
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) | 10.6% | 8.5% | 8.9% | 7.2% | 3.3% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 5.5% | 6.3% | 4.9% | 8.5% | 5.1% |
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) | 8.5% | 12.2% | 9.2% | 10.6% | 6.5% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 34.4% | 27.6% | 22.2% | 19.9% | 20.8% |
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 | 4.0x |
| 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 (33 companies) | -0.6x | -0.2x | -0.6x | -0.6x | -1.5x |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | -1.7x | -0.4x | -0.4x | -0.3x | -1.0x |
