Dragonite International Ltd Net Income dropped on 89.6% in 2015 while EBITDA Margin surged on 157 pp from -261% to -104%
24/03/2016 • About Dragonite International Ltd (
$329) • By InTwits
Dragonite International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dragonite International Ltd doesn't have a profitable business model yet: 2015 ROIC is -3.2%
- The company operates at negative EBITDA Margin: -103.9%
- Dragonite International 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 -226.6%0
- Dragonite International Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.0%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 0.39 in 2015, 6.3 in 2014, 3.9 in 2013, 4.9 in 2012, 0.41 in 2011
- The company has unprofitable business model: ROIC is at -3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dragonite International Ltd ($329) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 19.878 | 17.787 | 20.195 | 33.272 | 24.375 | -26.7% |
| Gross Profit | -22.976 | 5.772 | 7.517 | 11.536 | 1.994 | -82.7% |
| SG&A | | 28.254 | 26.762 | 95.404 | 31.180 | -67.3% |
| EBITDA | -81.394 | -48.939 | -19.178 | -86.868 | -25.316 | -70.9% |
| Net Income | -314.081 | -66.080 | 568.164 | 321.665 | 33.369 | -89.6% |
Balance Sheet
|
|---|
| Cash | 55.970 | 34.881 | 37.614 | 83.697 | 180.342 | 115.5% |
| Short Term Debt | 92.342 | 25.676 | 0.000 | 0.000 | 10.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.405 | 4.948 | 3.899 | 6.342 | 0.392 | -93.8% |
Ratios
|
|---|
| Revenue growth | -8.8% | -10.5% | 13.5% | 64.8% | -26.7% | |
| EBITDA growth | -62.7% | -39.9% | -60.8% | 353.0% | -70.9% | |
| Gross Margin | -115.6% | 32.5% | 37.2% | 34.7% | 8.2% | -26.5% |
| EBITDA Margin | -409.5% | -275.1% | -95.0% | -261.1% | -103.9% | 157.2% |
| Net Income Margin | -1,580.0% | -371.5% | 2,813.4% | 966.8% | 136.9% | -829.9% |
| SG&A, % of revenue | | 158.8% | 132.5% | 286.7% | 127.9% | -158.8% |
| CAPEX, % of revenue | 2.0% | 27.8% | 19.3% | 19.1% | 1.6% | -17.5% |
| ROIC | -25.1% | -10.9% | -2.8% | -9.1% | -3.2% | 5.9% |
| ROE | -203.5% | -24.2% | 87.7% | 35.6% | 3.9% | -31.7% |
Revenue and profitability
The company's Revenue dropped on 26.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 157 pp from -261% to -104% in 2015.
Gross Margin dropped on 26.5 pp from 34.7% to 8.2% in 2015. SG&A as a % of Revenue dropped on 159 pp from 287% to 128% in 2015.
Net Income marign dropped on 830 pp from 967% to 137% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.6% in 2015. CAPEX/Revenue dropped on 26.2 pp from 27.8% in 2012 to 1.6% in 2015. It's average CAPEX/Revenue for the last three years was 13.3%.
Return on investment
The company operates at negative ROIC (-3.22%) and low but positive ROE (3.90%). ROIC increased on 5.9 pp from -9.1% to -3.2% in 2015. ROE dropped on 31.7 pp from 35.6% to 3.9% in 2015.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt surged while cash surged on 115% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Dragonite International Ltd benchmarking against other companies in Pharmaceuticals 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 |
|---|
| 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% |
| Tianda Pharmaceuticals Ltd ($455) | | -6.2% | 85.3% | 37.2% | -43.6% |
| |
|---|
| Median (41 companies) | 27.1% | 15.1% | 13.5% | 15.7% | 11.3% |
|---|
| Dragonite International Ltd ($329) | | -10.5% | 13.5% | 64.8% | -26.7% |
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% | 36.4% | 49.1% | 50.0% |
|---|
| Dragonite International Ltd ($329) | -115.6% | 32.5% | 37.2% | 34.7% | 8.2% |
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% | 19.0% |
|---|
| Dragonite International Ltd ($329) | -409.5% | -275.1% | -95.0% | -261.1% | -103.9% |
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% | 8.2% | 7.5% | 7.2% | 4.4% |
|---|
| Dragonite International Ltd ($329) | 2.0% | 27.8% | 19.3% | 19.1% | 1.6% |
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) | 9.1% | 12.3% | 9.3% | 11.6% | 7.6% |
|---|
| Dragonite International Ltd ($329) | -25.1% | -10.9% | -2.8% | -9.1% | -3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China NT Pharma Group Co Ltd ($1011) | 0.4x | | | 7.2x | -0.4x |
| 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 (34 companies) | -0.8x | -0.4x | -0.5x | -0.6x | -1.0x |
|---|
