Microport Scientific Corp Debt dropped on 36.8% in 2015
29/03/2016 • About Microport Scientific Corp (
$853) • By InTwits
Microport Scientific Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Microport Scientific Corp doesn't have a profitable business model yet: 2015 ROIC is 0.7%
- EBITDA Margin is quite volatile: 11.3% in 2015, -2.2% in 2014, 25.8% in 2013, 44.6% in 2012, 40.4% in 2011
- Microport Scientific Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.6%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 2.7 in 2015, 7.9 in 2014, 9.1 in 2013, 3.6 in 2012, 14.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Microport Scientific Corp ($853) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 130.0 | 147.5 | 151.7 | 355.3 | 375.8 | 5.8% |
| Gross Profit | 108.7 | 123.3 | 122.9 | 243.3 | 252.5 | 3.8% |
| SG&A | 38.7 | 44.0 | 44.9 | 204.4 | 192.8 | -5.7% |
| EBITDA | 52.5 | 65.8 | 39.1 | -7.8 | 42.4 | -645.2% |
| Net Income | 49.7 | 56.1 | 24.0 | -59.5 | -12.1 | -79.7% |
Balance Sheet
|
|---|
| Cash | 173.9 | 66.3 | 159.9 | 215.6 | 99.5 | -53.9% |
| Short Term Debt | 0.4 | 3.3 | 29.6 | 217.8 | 56.3 | -74.1% |
| Long Term Debt | 0.5 | 0.4 | 22.0 | 226.3 | 224.2 | -0.9% |
Cash flow
|
|---|
| Capex | 24.0 | 46.7 | 42.4 | 53.4 | 36.6 | -31.5% |
Ratios
|
|---|
| Revenue growth | 20.9% | 13.5% | 2.8% | 134.3% | 5.8% | |
| EBITDA growth | 4.3% | 25.3% | -40.6% | -119.9% | -645.2% | |
| Gross Margin | 83.7% | 83.6% | 81.0% | 68.5% | 67.2% | -1.3% |
| EBITDA Margin | 40.4% | 44.6% | 25.8% | -2.2% | 11.3% | 13.5% |
| Net Income Margin | 38.2% | 38.0% | 15.8% | -16.7% | -3.2% | 13.5% |
| SG&A, % of revenue | 29.8% | 29.8% | 29.6% | 57.5% | 51.3% | -6.2% |
| CAPEX, % of revenue | 18.5% | 31.6% | 27.9% | 15.0% | 9.7% | -5.3% |
| ROIC | 14.4% | 16.5% | 7.7% | -7.3% | 0.7% | 8.0% |
| ROE | 15.7% | 16.0% | 6.3% | -16.2% | -3.7% | 12.5% |
| Net Debt/EBITDA | -3.3x | -1.0x | -2.8x | | 4.3x | 4.3x |
Revenue and profitability
Microport Scientific Corp's Revenue increased on 5.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 24.4 pp from 11.7% to 36.1% in 2015.
Gross Margin decreased slightly on 1.3 pp from 68.5% to 67.2% in 2015. SG&A as a % of Revenue decreased on 6.2 pp from 57.5% to 51.3% in 2015.
Net Income marign surged on 13.5 pp from -16.7% to -3.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Microport Scientific Corp's CAPEX/Revenue was 9.7% in 2015. Microport Scientific Corp's CAPEX/Revenue dropped on 21.9 pp from 31.6% in 2012 to 9.7% in 2015. Average CAPEX/Revenue for the last three years was 17.6%.The company maintained rich investment policy and has spent a big chunk of EBITDA (86.3%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (0.68%) and negative ROE (-3.69%). ROIC increased on 8.0 pp from -7.3% to 0.68% in 2015. ROE surged on 12.5 pp from -16.2% to -3.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is 6.6x. Net Debt / EBITDA jumped4.3x from to 4.3x in 2015. Debt dropped on 36.8% in 2015 while cash dropped on 53.9% in 2015.
Appendix 1: Peers in Healthcare-Products
Below we provide Microport 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% |
| Lifetech Scientific Corp ($1302) | | 29.3% | 27.3% | 22.4% | 10.2% |
| |
|---|
| Median (13 companies) | 13.7% | 10.3% | 18.0% | 8.9% | 5.7% |
|---|
| Microport Scientific Corp ($853) | | 13.5% | 2.8% | 134.3% | 5.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | 81.1% |
| 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% |
| 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% |
|---|
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | 67.2% |
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% |
| Lifetech Scientific Corp ($1302) | 17.2% | 31.6% | 24.5% | 23.4% | 33.1% |
| 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% |
| |
|---|
| Median (13 companies) | 19.0% | 18.3% | 19.9% | 13.4% | 10.9% |
|---|
| Microport Scientific Corp ($853) | 40.4% | 44.6% | 25.8% | -2.2% | 11.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 10.7% | 0.0% | 16.5% | 0.0% | 70.0% |
| 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% |
| |
|---|
| Median (13 companies) | 8.3% | 3.8% | 6.6% | 5.0% | 4.6% |
|---|
| Microport Scientific Corp ($853) | 18.5% | 31.6% | 27.9% | 15.0% | 9.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | 32.9% |
| 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% |
| |
|---|
| Median (13 companies) | 12.1% | 6.8% | 7.1% | 5.2% | 8.5% |
|---|
| Microport Scientific Corp ($853) | 14.4% | 16.5% | 7.7% | -7.3% | 0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 |
| Lifetech Scientific Corp ($1302) | -7.7x | -3.5x | -2.8x | -2.7x | -1.1x |
| |
|---|
| Median (9 companies) | -0.9x | -1.1x | -1.2x | -1.5x | -1.1x |
|---|
| Microport Scientific Corp ($853) | -3.3x | -1.0x | -2.8x | | 4.3x |
