China Pioneer Pharma Holdings Ltd Net Income dropped on 33.4% in 2015 and Revenue decreased on 5.2%
29/03/2016 • About China Pioneer Pharma Holdings Ltd (
$1345) • By InTwits
China Pioneer Pharma Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Pioneer Pharma Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has business model with average profitability: ROIC is at 12.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Pioneer Pharma Holdings Ltd ($1345) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 718 | 959 | 1,272 | 1,540 | 1,461 | -5.2% |
| Gross Profit | 196 | 307 | 387 | 492 | 463 | -6.0% |
| SG&A | 84 | 118 | 135 | 210 | 202 | -4.0% |
| EBITDA | 123 | 203 | 281 | 308 | 210 | -31.9% |
| Net Income | 96 | 186 | 238 | 262 | 174 | -33.4% |
Balance Sheet
|
|---|
| Cash | 51 | 60 | 702 | 261 | 317 | 21.6% |
| Short Term Debt | 338 | 416 | 430 | 611 | 288 | -52.9% |
| Long Term Debt | 0 | 0 | 0 | 9 | 15 | 77.6% |
Cash flow
|
|---|
| Capex | 2 | 1 | 16 | 39 | 6 | -84.4% |
Ratios
|
|---|
| Revenue growth | 25.8% | 33.6% | 32.7% | 21.1% | -5.2% | |
| EBITDA growth | 26.9% | 64.5% | 38.5% | 9.8% | -31.9% | |
| Gross Margin | 27.3% | 32.0% | 30.4% | 31.9% | 31.7% | -0.3% |
| EBITDA Margin | 17.2% | 21.1% | 22.1% | 20.0% | 14.4% | -5.6% |
| Net Income Margin | 13.3% | 19.4% | 18.7% | 17.0% | 11.9% | -5.1% |
| SG&A, % of revenue | 11.8% | 12.3% | 10.6% | 13.7% | 13.8% | 0.2% |
| CAPEX, % of revenue | 0.3% | 0.1% | 1.3% | 2.6% | 0.4% | -2.1% |
| ROIC | 27.4% | 34.4% | 25.1% | 17.2% | 12.0% | -5.2% |
| ROE | 52.3% | 92.2% | 34.8% | 22.9% | 16.4% | -6.5% |
| Net Debt/EBITDA | 2.3x | 1.8x | -1.0x | 1.2x | -0.1x | -1.2x |
Revenue and profitability
The company's Revenue decreased on 5.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 20.0% to 14.4% 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 decreased on 5.1 pp from 17.0% to 11.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 China Pioneer Pharma Holdings Ltd had CAPEX/Revenue of 0.42%. CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROE (16.40%) while ROIC is low (11.96%). ROIC decreased on 5.2 pp from 17.2% to 12.0% in 2015. ROE decreased on 6.5 pp from 22.9% to 16.4% in 2015.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 1.2x to -0.1x in 2015. Debt dropped on 51.1% in 2015 while cash surged on 21.6% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide China Pioneer Pharma Holdings 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% |
| Dragonite International Ltd ($329) | | -10.5% | 13.5% | 64.8% | -26.7% |
| |
|---|
| Median (42 companies) | 12.7% | 14.3% | 13.5% | 15.3% | 4.4% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | | 33.6% | 32.7% | 21.1% | -5.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Luye Pharma Group Ltd ($2186) | 83.0% | 83.5% | 83.6% | 81.0% | 81.4% |
| 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% |
| |
|---|
| Median (40 companies) | 38.7% | 39.4% | 38.3% | 50.0% | 50.0% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 27.3% | 32.0% | 30.4% | 31.9% | 31.7% |
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% | 93.3% |
| 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 (41 companies) | 17.2% | 18.7% | 19.7% | 21.4% | 20.0% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 17.2% | 21.1% | 22.1% | 20.0% | 14.4% |
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 (41 companies) | 10.9% | 8.3% | 9.7% | 7.6% | 4.4% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 0.3% | 0.1% | 1.3% | 2.6% | 0.4% |
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% | 25.4% |
| |
|---|
| Median (42 companies) | 8.5% | 12.2% | 9.3% | 11.1% | 7.9% |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 27.4% | 34.4% | 25.1% | 17.2% | 12.0% |
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 | -0.2x | -0.6x | -0.6x |
|---|
| China Pioneer Pharma Holdings Ltd ($1345) | 2.3x | 1.8x | -1.0x | 1.2x | -0.1x |
