Sinopharm Group Co Ltd reports 17.0% EBITDA growth and 13.5% Revenue growth
28/03/2016 • About Sinopharm Group Co Ltd (
$1099) • By InTwits
Sinopharm Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sinopharm Group Co Ltd is a fast growth stock: 2015 revenue growth was 13.5%, 5 year revenue CAGR was 26.8% at 2015 ROIC 13.3%
- EBITDA Margin is relatively stable: 4.5% in 2015 vs. 4.3% in 2014 vs. 4.0% in 2011
- Sinopharm Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has highly profitable business model: ROIC is at 13.3%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sinopharm Group Co Ltd ($1099) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 102,225 | 136,502 | 166,866 | 200,131 | 227,069 | 13.5% |
| Gross Profit | 8,355 | 10,988 | 13,379 | 16,328 | 18,618 | 14.0% |
| SG&A | 4,857 | 6,256 | 7,431 | 8,502 | 9,697 | 14.0% |
| EBITDA | 4,096 | 5,436 | 6,779 | 8,697 | 10,175 | 17.0% |
| Net Income | 1,561 | 1,979 | 2,250 | 2,875 | 3,761 | 30.8% |
Balance Sheet
|
|---|
| Cash | 13,091 | 9,802 | 14,002 | 15,232 | 19,919 | 30.8% |
| Short Term Debt | 8,667 | 10,948 | 21,007 | 25,233 | 28,204 | 11.8% |
| Long Term Debt | 5,182 | 5,192 | 4,134 | 4,223 | 608 | -85.6% |
Cash flow
|
|---|
| Capex | 1,101 | 1,422 | 1,224 | 1,645 | 1,080 | -34.4% |
Ratios
|
|---|
| Revenue growth | 47.7% | 33.5% | 22.2% | 19.9% | 13.5% | |
| EBITDA growth | 51.2% | 32.7% | 24.7% | 28.3% | 17.0% | |
| Gross Margin | 8.2% | 8.0% | 8.0% | 8.2% | 8.2% | 0.0% |
| EBITDA Margin | 4.0% | 4.0% | 4.1% | 4.3% | 4.5% | 0.1% |
| Net Income Margin | 1.5% | 1.5% | 1.3% | 1.4% | 1.7% | 0.2% |
| SG&A, % of revenue | 4.8% | 4.6% | 4.5% | 4.2% | 4.3% | 0.0% |
| CAPEX, % of revenue | 1.1% | 1.0% | 0.7% | 0.8% | 0.5% | -0.3% |
| ROIC | 13.5% | 13.0% | 12.9% | 12.9% | 13.3% | 0.4% |
| ROE | 11.4% | 12.0% | 11.5% | 11.7% | 13.1% | 1.4% |
| Net Debt/EBITDA | 0.2x | 1.2x | 1.6x | 1.6x | 0.9x | -0.8x |
Revenue and profitability
Sinopharm Group Co Ltd's Revenue surged on 13.5% in 2015. EBITDA Margin showed almost no change 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
Sinopharm Group Co Ltd's CAPEX/Revenue was 0.48% in 2015. CAPEX/Revenue decreased slightly on 0.57 pp from 1.0% in 2012 to 0.48% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.68%.
Return on investment
The company operates at good ROIC (13.30%) and ROE (13.10%). ROIC showed almost no change in 2015. ROE increased slightly on 1.4 pp from 11.7% to 13.1% in 2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 1.6x to 0.9x in 2015. Debt decreased on 2.2% in 2015 while cash surged on 30.8% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Sinopharm 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) | | -10.5% | 13.5% | 64.8% | -26.7% |
| |
|---|
| Median (41 companies) | 26.4% | 13.4% | 13.5% | 15.7% | 7.6% |
|---|
| Sinopharm Group Co Ltd ($1099) | | 33.5% | 22.2% | 19.9% | 13.5% |
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% | 37.8% | 49.1% | 50.0% |
|---|
| Sinopharm Group Co Ltd ($1099) | 8.2% | 8.0% | 8.0% | 8.2% | 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% | 18.3% |
|---|
| Sinopharm Group Co Ltd ($1099) | 4.0% | 4.0% | 4.1% | 4.3% | 4.5% |
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% | 7.5% | 4.3% |
|---|
| Sinopharm Group Co Ltd ($1099) | 1.1% | 1.0% | 0.7% | 0.8% | 0.5% |
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% | 12.2% | 9.2% | 10.6% | 7.2% |
|---|
| Sinopharm Group Co Ltd ($1099) | 13.5% | 13.0% | 12.9% | 12.9% | 13.3% |
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) | -0.8x | -0.4x | -0.6x | -0.6x | -1.0x |
|---|
| Sinopharm Group Co Ltd ($1099) | 0.2x | 1.2x | 1.6x | 1.6x | 0.9x |
