China NT Pharma Group Co Ltd Net Income surged on 4,102% in 2015 and EBITDA Margin increased on 6.1 pp from 11.7% to 17.7%
23/03/2016 • About China NT Pharma Group Co Ltd (
$1011) • By InTwits
China NT Pharma Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 17.7% in 2015 vs. 11.7% in 2014 vs. 13.4% in 2011
- China NT Pharma Group Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 4.4%.
- CAPEX is quite volatile: 38.0 in 2015, 113 in 2014, 9.1 in 2013, 43.4 in 2012, 23.4 in 2011
- The company has business model with low profitability: ROIC is at 7.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China NT Pharma Group Co Ltd ($1011) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,758 | 739 | 754 | 865 | 848 | -2.0% |
| Gross Profit | 891 | 272 | 289 | 391 | 452 | 15.4% |
| SG&A | | 709 | 467 | 346 | 320 | -7.6% |
| EBITDA | 369 | -389 | -148 | 101 | 150 | 48.9% |
| Net Income | 234 | -1,109 | -673 | 2 | 88 | 4,101.9% |
Balance Sheet
|
|---|
| Cash | 374 | 246 | 229 | 346 | 328 | -5.2% |
| Short Term Debt | 526 | 1,011 | 668 | 952 | 261 | -72.6% |
| Long Term Debt | 0 | 20 | 310 | 120 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 23 | 43 | 9 | 113 | 38 | -66.5% |
Ratios
|
|---|
| Revenue growth | 3.4% | -73.2% | 2.0% | 14.7% | -2.0% | |
| EBITDA growth | 39.5% | -205.6% | -62.0% | -168.3% | 48.9% | |
| Gross Margin | 32.3% | 36.8% | 38.3% | 45.3% | 53.3% | 8.0% |
| EBITDA Margin | 13.4% | -52.6% | -19.6% | 11.7% | 17.7% | 6.1% |
| Net Income Margin | 8.5% | -150.1% | -89.3% | 0.2% | 10.3% | 10.1% |
| SG&A, % of revenue | | 95.9% | 61.9% | 40.0% | 37.7% | -2.3% |
| CAPEX, % of revenue | 0.8% | 5.9% | 1.2% | 13.1% | 4.5% | -8.6% |
| ROIC | 16.8% | -17.0% | -8.9% | 4.4% | 7.6% | 3.2% |
| ROE | 18.5% | -75.8% | -123.1% | 1.0% | 15.9% | 14.9% |
| Net Debt/EBITDA | 0.4x | | | 7.2x | -0.4x | -7.6x |
Revenue and profitability
The company's Revenue decreased slightly on 2.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 6.1 pp from 11.7% to 17.7% in 2015.
Gross Margin increased on 8.0 pp from 45.3% to 53.3% in 2015. SG&A as a % of Revenue decreased on 2.3 pp from 40.0% to 37.7% in 2015.
Net Income marign surged on 10.1 pp from 0.24% to 10.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
China NT Pharma Group Co Ltd's CAPEX/Revenue was 4.5% in 2015. China NT Pharma Group Co Ltd showed small CAPEX/Revenue decline of 1.4 pp from 5.9% in 2012 to 4.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at good ROE (15.90%) while ROIC is low (7.63%). ROIC increased on 3.2 pp from 4.4% to 7.6% in 2015. ROE jumped on 14.9 pp from 0.99% to 15.9% in 2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA dropped on 7.6x from 7.2x to -0.4x in 2015. Debt dropped on 75.6% in 2015 while cash decreased on 5.2% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find China NT Pharma Group 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% | 15.1% | 13.5% | 16.8% | 11.3% |
|---|
| China NT Pharma Group Co Ltd ($1011) | | -73.2% | 2.0% | 14.7% | -2.0% |
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) | 38.3% | 39.2% | 35.9% | 49.1% | 49.9% |
|---|
| China NT Pharma Group Co Ltd ($1011) | 32.3% | 36.8% | 38.3% | 45.3% | 53.3% |
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% | 20.3% | 20.2% | 21.4% | 21.0% |
|---|
| China NT Pharma Group Co Ltd ($1011) | 13.4% | -52.6% | -19.6% | 11.7% | 17.7% |
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% | 4.0% |
|---|
| China NT Pharma Group Co Ltd ($1011) | 0.8% | 5.9% | 1.2% | 13.1% | 4.5% |
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% | 22.7% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 14.3% | 13.7% | 18.3% | 22.0% | |
| |
|---|
| Median (41 companies) | 8.5% | 12.3% | 9.3% | 11.6% | 6.7% |
|---|
| China NT Pharma Group Co Ltd ($1011) | 16.8% | -17.0% | -8.9% | 4.4% | 7.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | |
| Shanghai Fosun Pharmaceutical Group Co Ltd ($2196) | 2.4x | 0.8x | 1.4x | 2.2x | |
| |
|---|
| Median (33 companies) | -0.8x | -0.4x | -0.5x | -0.6x | -1.2x |
|---|
| China NT Pharma Group Co Ltd ($1011) | 0.4x | | | 7.2x | -0.4x |
