Livzon Pharmaceutical Group Inc CAPEX dropped on 28.3% in 2015 while Revenue jumped on 19.4%
24/03/2016 • About Livzon Pharmaceutical Group Inc (
$1513) • By InTwits
Livzon Pharmaceutical Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Livzon Pharmaceutical Group Inc is a fast growth stock: 2015 revenue growth was 19.4%, 5 year revenue CAGR was 19.2% at 2015 ROIC 12.4%
- Livzon Pharmaceutical Group Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.1%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 477 in 2015, 666 in 2014, 920 in 2013, 762 in 2012, 349 in 2011
- The company has highly profitable business model: ROIC is at 12.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Livzon Pharmaceutical Group Inc ($1513) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,122 | 3,889 | 4,560 | 5,475 | 6,540 | 19.4% |
| Gross Profit | 1,724 | 2,319 | 2,866 | 3,332 | 3,964 | 19.0% |
| SG&A | 1,269 | 1,793 | 2,067 | 2,440 | 2,883 | 18.1% |
| EBITDA | 551 | 649 | 740 | 844 | 1,024 | 21.3% |
| Net Income | 359 | 442 | 488 | 516 | 623 | 20.7% |
Balance Sheet
|
|---|
| Cash | 1,432 | 1,179 | 751 | 709 | 767 | 8.2% |
| Short Term Debt | 652 | 1,220 | 867 | 1,029 | 949 | -7.7% |
| Long Term Debt | 1 | 1 | 550 | 467 | 1 | -99.8% |
Cash flow
|
|---|
| Capex | 349 | 762 | 920 | 666 | 477 | -28.3% |
Ratios
|
|---|
| Revenue growth | 14.9% | 24.6% | 17.3% | 20.1% | 19.4% | |
| EBITDA growth | -13.6% | 17.8% | 13.9% | 14.1% | 21.3% | |
| Gross Margin | 55.2% | 59.6% | 62.8% | 60.9% | 60.6% | -0.2% |
| EBITDA Margin | 17.7% | 16.7% | 16.2% | 15.4% | 15.7% | 0.2% |
| Net Income Margin | 11.5% | 11.4% | 10.7% | 9.4% | 9.5% | 0.1% |
| SG&A, % of revenue | 40.6% | 46.1% | 45.3% | 44.6% | 44.1% | -0.5% |
| CAPEX, % of revenue | 11.2% | 19.6% | 20.2% | 12.2% | 7.3% | -4.9% |
| ROIC | 12.0% | 12.0% | 11.9% | 11.1% | 12.4% | 1.3% |
| ROE | 13.4% | 15.1% | 15.3% | 14.7% | 15.5% | 0.8% |
| Net Debt/EBITDA | -1.4x | 0.1x | 0.9x | 0.9x | 0.2x | -0.8x |
Revenue and profitability
Livzon Pharmaceutical Group Inc's Revenue surged on 19.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 31.1 pp from 24.6% to 55.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Livzon Pharmaceutical Group Inc had CAPEX/Revenue of 7.3%. CAPEX/Revenue dropped on 12.3 pp from 19.6% in 2012 to 7.3% in 2015. For the last three years the average CAPEX/Revenue was 13.2%.
Return on investment
The company operates at good ROIC (12.42%) and ROE (15.48%). ROIC increased slightly on 1.3 pp from 11.1% to 12.4% in 2015. ROE increased slightly on 0.83 pp from 14.7% to 15.5% in 2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 0.9x to 0.2x in 2015. Debt dropped on 36.5% in 2015 while cash increased on 8.2% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Livzon Pharmaceutical Group Inc 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) | | -10.5% | 13.5% | 64.8% | -26.7% |
| |
|---|
| Median (41 companies) | 27.1% | 13.4% | 13.5% | 15.7% | 4.0% |
|---|
| Livzon Pharmaceutical Group Inc ($1513) | | 24.6% | 17.3% | 20.1% | 19.4% |
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% | 49.9% |
|---|
| Livzon Pharmaceutical Group Inc ($1513) | 55.2% | 59.6% | 62.8% | 60.9% | 60.6% |
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% | 20.3% | 20.2% | 21.4% | 19.0% |
|---|
| Livzon Pharmaceutical Group Inc ($1513) | 17.7% | 16.7% | 16.2% | 15.4% | 15.7% |
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) | 9.4% | 8.2% | 7.5% | 7.2% | 4.0% |
|---|
| Livzon Pharmaceutical Group Inc ($1513) | 11.2% | 19.6% | 20.2% | 12.2% | 7.3% |
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% | 9.2% | 11.1% | 6.7% |
|---|
| Livzon Pharmaceutical Group Inc ($1513) | 12.0% | 12.0% | 11.9% | 11.1% | 12.4% |
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 (33 companies) | -0.6x | -0.4x | -0.6x | -0.6x | -1.0x |
|---|
| Livzon Pharmaceutical Group Inc ($1513) | -1.4x | 0.1x | 0.9x | 0.9x | 0.2x |
