Lifetech Scientific Corp CAPEX surged and Revenue surged on 10.2%
29/03/2016 • About Lifetech Scientific Corp (
$1302) • By InTwits
Lifetech Scientific Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lifetech Scientific Corp is a fast growth stock: 2015 revenue growth was 10.2%, 5 year revenue CAGR was 24.4% at 2015 ROIC 32.9%
- Lifetech Scientific Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.4%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 218 in 2015, 0 in 2014, 38.1 in 2013, 0 in 2012, 15.0 in 2011
- The company has highly profitable business model: ROIC is at 32.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lifetech Scientific Corp ($1302) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 140.3 | 181.5 | 231.0 | 282.7 | 311.6 | 10.2% |
| Gross Profit | 113.0 | 145.3 | 188.6 | 230.1 | 252.6 | 9.8% |
| SG&A | 65.8 | 79.1 | 115.3 | 144.8 | 121.2 | -16.3% |
| EBITDA | 24.1 | 57.4 | 56.6 | 66.2 | 103.0 | 55.7% |
| Net Income | 11.8 | 32.4 | -65.7 | -81.2 | 2.4 | -102.9% |
Balance Sheet
|
|---|
| Cash | 185.0 | 198.4 | 225.5 | 256.3 | 255.1 | -0.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 67.1 | 78.5 | 145.2 | 85.1% |
Cash flow
|
|---|
| Capex | 15.0 | 0.0 | 38.1 | 0.0 | 218.2 | |
Ratios
|
|---|
| Revenue growth | 34.0% | 29.3% | 27.3% | 22.4% | 10.2% | |
| EBITDA growth | -34.3% | 138.3% | -1.4% | 16.9% | 55.7% | |
| Gross Margin | 80.5% | 80.1% | 81.6% | 81.4% | 81.1% | -0.4% |
| EBITDA Margin | 17.2% | 31.6% | 24.5% | 23.4% | 33.1% | 9.7% |
| Net Income Margin | 8.4% | 17.8% | -28.4% | -28.7% | 0.8% | 29.5% |
| SG&A, % of revenue | 46.9% | 43.6% | 49.9% | 51.2% | 38.9% | -12.3% |
| CAPEX, % of revenue | 10.7% | 0.0% | 16.5% | 0.0% | 70.0% | 70.0% |
| ROIC | 13.0% | 17.5% | 15.9% | 21.2% | 32.9% | 11.8% |
| ROE | | 11.5% | -24.9% | -42.4% | 1.4% | 43.9% |
| Net Debt/EBITDA | -7.7x | -3.5x | -2.8x | -2.7x | -1.1x | 1.6x |
Revenue and profitability
Lifetech Scientific Corp's Revenue surged on 10.2% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.7 pp from 23.4% to 33.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue dropped on 12.3 pp from 51.2% to 38.9% in 2015.
Net Income marign jumped on 29.5 pp from -28.7% to 0.76% in 2015.
Capital expenditures (CAPEX) and working capital investments
Lifetech Scientific Corp's CAPEX/Revenue was 70.0% in 2015. The company showed fast CAPEX/Revenue growth70.0 pp from 0% in 2012 to 70.0% in 2015.To fuel this fast growth the company made large investments to CAPEX (212% of EBITDA).
Return on investment
The company operates at good ROIC (32.91%) while ROE is low (1.42%). ROIC jumped on 11.8 pp from 21.2% to 32.9% in 2015. ROE jumped on 43.9 pp from -42.4% to 1.4% in 2015.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA surged on 1.6x from -2.7x to -1.1x in 2015. Debt jumped on 85.1% in 2015 while cash showed almost no change in 2015.
Appendix 1: Peers in Healthcare-Products
Below we provide Lifetech Scientific Corp benchmarking against other companies in Healthcare-Products 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 |
|---|
| Vitop Bioenergy Holdings Ltd ($1178) | | -24.7% | -3.2% | -27.3% | 92.4% |
| China Medical System Holdings Ltd ($867) | | 30.8% | 26.5% | 31.0% | 20.7% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | | 16.0% | 25.1% | 14.4% | 12.1% |
| BBI Life Sciences Corp ($1035) | | 16.4% | 18.0% | 15.1% | 11.5% |
| Biosino Bio-Technology & Science Inc ($8247) | | 14.1% | 11.6% | 13.2% | 9.4% |
| |
|---|
| Median (13 companies) | 13.7% | 10.0% | 11.6% | 8.9% | 5.7% |
|---|
| Lifetech Scientific Corp ($1302) | | 29.3% | 27.3% | 22.4% | 10.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | 75.1% |
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | 72.8% |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | 67.2% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.3% | 57.3% | 59.1% | 58.8% | 59.4% |
| China Medical System Holdings Ltd ($867) | 56.6% | 58.8% | 54.5% | 56.2% | 57.6% |
| |
|---|
| Median (13 companies) | 49.0% | 44.9% | 50.5% | 46.8% | 48.0% |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | 81.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | 48.6% |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | 32.3% |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | 28.0% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | 27.8% |
| BBI Life Sciences Corp ($1035) | 30.2% | 25.7% | 26.0% | 12.4% | 25.5% |
| |
|---|
| Median (13 companies) | 22.9% | 18.3% | 19.9% | 12.4% | 10.9% |
|---|
| Lifetech Scientific Corp ($1302) | 17.2% | 31.6% | 24.5% | 23.4% | 33.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | 42.1% |
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | 26.1% |
| BBI Life Sciences Corp ($1035) | 31.1% | 23.6% | 6.7% | 6.4% | 20.0% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 41.7% | 26.0% | 20.2% | 11.7% | 18.3% |
| Microport Scientific Corp ($853) | 18.5% | 31.6% | 27.9% | 15.0% | 9.7% |
| |
|---|
| Median (13 companies) | 8.3% | 12.6% | 6.6% | 6.4% | 4.6% |
|---|
| Lifetech Scientific Corp ($1302) | 10.7% | 0.0% | 16.5% | 0.0% | 70.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | 20.5% |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | 16.4% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | 11.8% |
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | 10.7% |
| BBI Life Sciences Corp ($1035) | | 20.7% | 17.8% | 4.6% | 10.4% |
| |
|---|
| Median (13 companies) | 12.2% | 6.8% | 7.1% | 4.8% | 3.9% |
|---|
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | 32.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Microport Scientific Corp ($853) | -3.3x | -1.0x | -2.8x | | 4.3x |
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | 3.0x |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | 1.7x |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | -0.0x |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | -1.1x |
| |
|---|
| Median (9 companies) | -0.9x | -1.0x | -1.2x | -1.5x | -1.1x |
|---|
| Lifetech Scientific Corp ($1302) | -7.7x | -3.5x | -2.8x | -2.7x | -1.1x |
