Town Health International Medical Group Ltd Net Income surged on 201% in 2015 and EBITDA Margin jumped on 19.7 pp from -0.27% to 19.4%
23/03/2016 • About Town Health International Medical Group Ltd (
$3886) • By InTwits
Town Health International Medical Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Town Health International Medical Group Ltd 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 -11.6%0
- Town Health International Medical Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.2%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 249 in 2015, 83.2 in 2014, 172 in 2013, 17.0 in 2012, 79.8 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Town Health International Medical Group Ltd ($3886) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 339 | 342 | 355 | 495 | 1,123 | 127.0% |
| Gross Profit | 114 | 119 | 120 | 161 | 480 | 198.8% |
| SG&A | 192 | 184 | 200 | 236 | 520 | 120.5% |
| EBITDA | 97 | -463 | -157 | -1 | 218 | -16,744.5% |
| Net Income | 64 | -435 | 50 | 85 | 255 | 201.1% |
Balance Sheet
|
|---|
| Cash | 46 | 176 | 201 | 1,079 | 1,827 | 69.4% |
| Short Term Debt | 113 | 211 | 364 | 179 | 144 | -19.9% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 80 | 17 | 172 | 83 | 249 | 198.9% |
Ratios
|
|---|
| Revenue growth | 10.4% | 0.7% | 3.7% | 39.5% | 127.0% | |
| EBITDA growth | -48.4% | -577.8% | -66.0% | -99.2% | -16,744.5% | |
| Gross Margin | 33.6% | 34.7% | 33.9% | 32.5% | 42.7% | 10.3% |
| EBITDA Margin | 28.6% | -135.5% | -44.4% | -0.3% | 19.4% | 19.7% |
| Net Income Margin | 18.9% | -127.3% | 14.0% | 17.1% | 22.7% | 5.6% |
| SG&A, % of revenue | 56.6% | 53.8% | 56.5% | 47.7% | 46.3% | -1.4% |
| CAPEX, % of revenue | 23.5% | 5.0% | 48.6% | 16.8% | 22.1% | 5.3% |
| ROIC | 3.8% | -29.7% | -10.9% | -2.3% | 4.4% | 6.7% |
| ROE | 4.1% | -32.5% | 4.2% | 5.1% | 7.0% | 1.9% |
| Net Debt/EBITDA | 0.7x | | | | -7.7x | -7.7x |
Revenue and profitability
Town Health International Medical Group Ltd's Revenue jumped on 127% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 19.7 pp from -0.27% to 19.4% in 2015.
Gross Margin jumped on 10.3 pp from 32.5% to 42.7% in 2015. SG&A as a % of Revenue decreased slightly on 1.4 pp from 47.7% to 46.3% in 2015.
Net Income marign increased on 5.6 pp from 17.1% to 22.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 22.1%. CAPEX/Revenue jumped on 17.2 pp from 5.0% in 2012 to 22.1% in 2015. Average CAPEX/Revenue for the last three years was 29.2%.Town Health International Medical Group Ltd has spent a lot to CAPEX (114% of EBITDA) to fuel its growth.
Return on investment
The company operates at low ROIC (4.41%) and ROE (6.97%). ROIC increased on 6.7 pp from -2.3% to 4.4% in 2015. ROE increased slightly on 1.9 pp from 5.1% to 7.0% in 2015.
Leverage (Debt)
Debt level is -7.7x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped7.7x from to -7.7x in 2015. Debt dropped on 19.9% in 2015 while cash jumped on 69.4% in 2015.
Appendix 1: Peers in Healthcare-Services
Below we provide Town Health International Medical Group Ltd benchmarking against other companies in Healthcare-Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Natural Investment Co Ltd ($8250) | | 22.3% | -13.8% | 509.5% | 21.9% |
| Phoenix Healthcare Group Co Ltd ($1515) | 29.3% | 48.8% | 17.1% | 35.9% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | | 25.4% | 10.1% | 11.0% | -20.6% |
| SkyOcean International Holdings Ltd ($593) | 31.9% | 15.7% | -7.4% | -30.5% | |
| |
|---|
| Median (4 companies) | 30.6% | 23.9% | 1.3% | 23.5% | 0.7% |
|---|
| Town Health International Medical Group Ltd ($3886) | | 0.7% | 3.7% | 39.5% | 127.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 24.1% | 24.4% | 24.0% | 24.7% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 13.0% | 12.8% | 11.8% | 12.0% | 15.6% |
| China Natural Investment Co Ltd ($8250) | 45.6% | 38.1% | 32.4% | 10.6% | 12.4% |
| |
|---|
| Median (3 companies) | 24.1% | 24.4% | 24.0% | 12.0% | 14.0% |
|---|
| Town Health International Medical Group Ltd ($3886) | 33.6% | 34.7% | 33.9% | 32.5% | 42.7% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 21.8% | 26.5% | 26.5% | 25.8% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 5.9% | 5.5% | 4.6% | 5.2% | 2.1% |
| China Natural Investment Co Ltd ($8250) | -24.9% | -33.3% | -39.5% | -7.2% | -9.6% |
| SkyOcean International Holdings Ltd ($593) | 18.9% | 28.4% | 31.5% | -151.1% | |
| |
|---|
| Median (4 companies) | 12.4% | 16.0% | 15.6% | -1.0% | -3.8% |
|---|
| Town Health International Medical Group Ltd ($3886) | 28.6% | -135.5% | -44.4% | -0.3% | 19.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SkyOcean International Holdings Ltd ($593) | 1.7% | 0.9% | 1.3% | 4.8% | |
| Phoenix Healthcare Group Co Ltd ($1515) | 6.7% | 3.7% | 2.4% | 3.0% | |
| China Natural Investment Co Ltd ($8250) | 197.7% | 36.8% | 16.8% | 2.1% | 0.2% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 0.3% | 0.9% | 0.5% | 0.5% | 1.2% |
| |
|---|
| Median (4 companies) | 4.2% | 2.3% | 1.8% | 2.6% | 0.7% |
|---|
| Town Health International Medical Group Ltd ($3886) | 23.5% | 5.0% | 48.6% | 16.8% | 22.1% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 11.9% | 17.9% | 14.3% | 14.6% | |
| Hua Xia Healthcare Holdings Ltd ($8143) | 6.7% | 7.5% | 6.5% | 8.1% | 2.2% |
| China Natural Investment Co Ltd ($8250) | -5.4% | -6.4% | -4.9% | -4.5% | -5.6% |
| SkyOcean International Holdings Ltd ($593) | 1.5% | 2.8% | 2.4% | -5.2% | |
| |
|---|
| Median (4 companies) | 4.1% | 5.2% | 4.5% | 1.8% | -1.7% |
|---|
| Town Health International Medical Group Ltd ($3886) | 3.8% | -29.7% | -10.9% | -2.3% | 4.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 2.3x | 1.7x | 1.9x | 0.9x | 3.5x |
| |
|---|
| Median (1 company) | -1.2x | 0.6x | -0.8x | -1.1x | 3.5x |
|---|
| Town Health International Medical Group Ltd ($3886) | 0.7x | | | | -7.7x |
