Shandong Weigao Group Medical Polymer Co Ltd CAPEX jumped on 76.2% in 2015 and Revenue jumped on 12.1%
22/03/2016 • About Shandong Weigao Group Medical Polymer Co Ltd (
$1066) • By InTwits
Shandong Weigao Group Medical Polymer Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shandong Weigao Group Medical Polymer Co Ltd is a growth stock: 2015 revenue growth was 12.1%, 5 year revenue CAGR was 19.2% at 2015 ROIC 11.8%
- Shandong Weigao Group Medical Polymer Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.6%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 174 in 2015, 142 in 2014, 39.9 in 2013, 13.1 in 2012, 14.8 in 2011
- The company has business model with average profitability: ROIC is at 11.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shandong Weigao Group Medical Polymer Co Ltd ($1066) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,181 | 3,689 | 4,613 | 5,278 | 5,919 | 12.1% |
| Gross Profit | 1,760 | 2,112 | 2,727 | 3,104 | 3,516 | 13.2% |
| SG&A | 777 | 1,087 | 1,475 | 1,742 | 1,938 | 11.3% |
| EBITDA | 996 | 1,050 | 1,291 | 1,530 | 1,643 | 7.4% |
| Net Income | 3,462 | 996 | 388 | 1,085 | 1,113 | 2.6% |
Balance Sheet
|
|---|
| Cash | 1,851 | 1,298 | 2,976 | 2,786 | 3,712 | 33.2% |
| Short Term Debt | 21 | 0 | 300 | 271 | 370 | 36.7% |
| Long Term Debt | 63 | 0 | 100 | 149 | 649 | 335.4% |
Cash flow
|
|---|
| Capex | 1,325 | 959 | 931 | 616 | 1,085 | 76.2% |
Ratios
|
|---|
| Revenue growth | 29.2% | 16.0% | 25.1% | 14.4% | 12.1% | |
| EBITDA growth | 26.0% | 5.5% | 22.9% | 18.5% | 7.4% | |
| Gross Margin | 55.3% | 57.3% | 59.1% | 58.8% | 59.4% | 0.6% |
| EBITDA Margin | 31.3% | 28.5% | 28.0% | 29.0% | 27.8% | -1.2% |
| Net Income Margin | 108.9% | 27.0% | 8.4% | 20.6% | 18.8% | -1.8% |
| SG&A, % of revenue | 24.4% | 29.5% | 32.0% | 33.0% | 32.7% | -0.3% |
| CAPEX, % of revenue | 41.7% | 26.0% | 20.2% | 11.7% | 18.3% | 6.7% |
| ROIC | 14.6% | 10.5% | 11.7% | 12.8% | 11.8% | -1.0% |
| ROE | 58.5% | 11.6% | 4.3% | 11.5% | 10.9% | -0.6% |
| Net Debt/EBITDA | -1.8x | -1.2x | -2.0x | -1.5x | -1.6x | -0.1x |
Revenue and profitability
The company's Revenue surged on 12.1% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.2 pp from 9.1% to 10.3% in 2015.
Gross Margin increased slightly on 0.58 pp from 58.8% to 59.4% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.8 pp from 20.6% to 18.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Shandong Weigao Group Medical Polymer Co Ltd's CAPEX/Revenue was 18.3% in 2015. CAPEX/Revenue decreased on 7.7 pp from 26.0% in 2012 to 18.3% in 2015. It's average CAPEX/Revenue for the last three years was 16.7%.Shandong Weigao Group Medical Polymer Co Ltd invested a big chunk of EBITDA (66.0%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (11.78%) and ROE (10.85%). ROIC decreased slightly on 0.97 pp from 12.8% to 11.8% in 2015. ROE decreased slightly on 0.64 pp from 11.5% to 10.9% in 2015.
Leverage (Debt)
Debt level is -1.6x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from -1.5x to -1.6x in 2015. Debt jumped on 143% in 2015 while cash surged on 33.2% in 2015.
Appendix 1: Peers in Healthcare-Products
Below we provide Shandong Weigao Group Medical Polymer Co Ltd benchmarking against other companies in Healthcare-Products 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 |
|---|
| Microport Scientific Corp ($853) | 20.9% | 13.5% | 2.8% | 134.3% | |
| PW Medtech Group Ltd ($1358) | 188.2% | 89.2% | 37.9% | 33.0% | |
| China Medical System Holdings Ltd ($867) | | 30.8% | 26.5% | 31.0% | 20.7% |
| Lifetech Scientific Corp ($1302) | 34.0% | 29.3% | 27.3% | 22.4% | |
| Biosino Bio-Technology & Science Inc ($8247) | | 14.1% | 11.6% | 13.2% | 9.4% |
| |
|---|
| Median (14 companies) | 27.4% | 6.4% | 11.5% | 6.6% | 4.7% |
|---|
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | | 16.0% | 25.1% | 14.4% | 12.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | |
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | |
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | 72.8% |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | |
| China Medical System Holdings Ltd ($867) | 56.6% | 58.8% | 54.5% | 56.2% | 57.6% |
| |
|---|
| Median (14 companies) | 42.6% | 39.9% | 48.1% | 46.4% | 32.3% |
|---|
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.3% | 57.3% | 59.1% | 58.8% | 59.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | 32.3% |
| Golden Meditech Holdings Ltd ($801) | 42.5% | 41.4% | 37.9% | 29.8% | -31.7% |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | 28.0% |
| Lifetech Scientific Corp ($1302) | 17.2% | 31.6% | 24.5% | 23.4% | |
| |
|---|
| Median (14 companies) | 17.2% | 15.6% | 18.5% | 11.1% | 4.4% |
|---|
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | 27.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | |
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | 26.1% |
| Microport Scientific Corp ($853) | 18.5% | 31.6% | 27.9% | 15.0% | |
| Arts Optical International Hldgs ($1120) | 5.6% | 14.0% | 4.5% | 14.0% | |
| Hengan International Group Co Ltd ($1044) | 14.2% | 13.3% | 6.6% | 7.0% | 4.6% |
| |
|---|
| Median (14 companies) | 7.2% | 3.7% | 5.9% | 4.8% | 3.3% |
|---|
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 41.7% | 26.0% | 20.2% | 11.7% | 18.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | 20.5% |
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | 16.4% |
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | |
| Arts Optical International Hldgs ($1120) | 8.8% | 3.9% | 2.6% | 8.4% | |
| |
|---|
| Median (14 companies) | 12.1% | 5.3% | 6.9% | 5.0% | 1.0% |
|---|
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | 11.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Fortune Investments Holdings Ltd ($8116) | 18.2x | | 2.9x | 93.0x | |
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | 3.0x |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | 1.7x |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | -0.0x |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | |
| |
|---|
| Median (10 companies) | -1.0x | -1.0x | -1.4x | -0.9x | -0.0x |
|---|
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | -1.8x | -1.2x | -2.0x | -1.5x | -1.6x |
