PW Medtech Group Ltd reports 45.0% CAPEX growth and 4.2% Revenue growth
29/03/2016 • About PW Medtech Group Ltd (
$1358) • By InTwits
PW Medtech Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PW Medtech Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.1%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 267 in 2015, 184 in 2014, 102 in 2013, 48.9 in 2012, 37.0 in 2011
- The company has business model with average profitability: ROIC is at 10.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PW Medtech Group Ltd ($1358) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 175.3 | 331.5 | 457.1 | 608.1 | 633.9 | 4.2% |
| Gross Profit | 109.1 | 218.8 | 310.4 | 442.9 | 476.0 | 7.5% |
| SG&A | 38.0 | 77.7 | 168.0 | 190.3 | 187.9 | -1.3% |
| EBITDA | 74.1 | 146.4 | 139.7 | 253.1 | 308.3 | 21.8% |
| Net Income | 22.1 | 44.7 | 77.9 | 176.6 | 208.6 | 18.1% |
Balance Sheet
|
|---|
| Cash | 61.1 | 212.5 | 1,145.6 | 153.8 | 328.2 | 113.4% |
| Short Term Debt | 0.0 | 30.0 | 93.0 | 75.0 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 37.0 | 48.9 | 102.2 | 183.9 | 266.7 | 45.0% |
Ratios
|
|---|
| Revenue growth | 188.2% | 89.2% | 37.9% | 33.0% | 4.2% | |
| EBITDA growth | 239.6% | 97.7% | -4.6% | 81.2% | 21.8% | |
| Gross Margin | 62.3% | 66.0% | 67.9% | 72.8% | 75.1% | 2.3% |
| EBITDA Margin | 42.3% | 44.2% | 30.6% | 41.6% | 48.6% | 7.0% |
| Net Income Margin | 12.6% | 13.5% | 17.0% | 29.0% | 32.9% | 3.9% |
| SG&A, % of revenue | 21.7% | 23.4% | 36.7% | 31.3% | 29.6% | -1.7% |
| CAPEX, % of revenue | 21.1% | 14.8% | 22.3% | 30.2% | 42.1% | 11.8% |
| ROIC | 30.9% | 30.7% | 9.2% | 10.0% | 10.7% | 0.7% |
| ROE | 30.8% | 20.2% | 6.9% | 8.8% | 9.5% | 0.7% |
| Net Debt/EBITDA | -0.8x | -1.2x | -7.5x | -0.3x | -1.1x | -0.8x |
Revenue and profitability
PW Medtech Group Ltd's Revenue increased on 4.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 18.7% to 14.3% in 2015.
Gross Margin increased on 2.3 pp from 72.8% to 75.1% in 2015. SG&A as a % of Revenue decreased slightly on 1.7 pp from 31.3% to 29.6% in 2015.
Net Income marign increased on 3.9 pp from 29.0% to 32.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
PW Medtech Group Ltd's CAPEX/Revenue was 42.1% in 2015. The company's CAPEX/Revenue surged on 27.3 pp from 14.8% in 2012 to 42.1% in 2015. It's average CAPEX/Revenue for the last three years was 31.6%.The company maintained rich investment policy and has spent a big chunk of EBITDA (86.5%) to CAPEX.
Return on investment
The company operates at low ROIC (10.75%) and ROE (9.46%). ROIC increased slightly on 0.72 pp from 10.0% to 10.7% in 2015. ROE increased slightly on 0.65 pp from 8.8% to 9.5% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash surged on 113% in 2015.
Appendix 1: Peers in Healthcare-Products
Below we provide PW Medtech Group Ltd 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% | 10.0% | 11.6% | 8.9% | 5.8% |
|---|
| PW Medtech Group Ltd ($1358) | | 89.2% | 37.9% | 33.0% | 4.2% |
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% |
| 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% |
|---|
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | 75.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| BBI Life Sciences Corp ($1035) | 30.2% | 25.7% | 26.0% | 12.4% | 25.5% |
| |
|---|
| Median (13 companies) | 19.0% | 18.3% | 19.9% | 12.4% | 10.9% |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | 48.6% |
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% |
| 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% | 3.8% | 6.6% | 5.0% | 4.6% |
|---|
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | 42.1% |
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% |
| BBI Life Sciences Corp ($1035) | | 20.7% | 17.8% | 4.6% | 10.4% |
| |
|---|
| Median (13 companies) | 12.1% | 6.8% | 7.1% | 4.8% | 3.9% |
|---|
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | 10.7% |
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 |
| Lifetech Scientific Corp ($1302) | -7.7x | -3.5x | -2.8x | -2.7x | -1.1x |
| |
|---|
| Median (9 companies) | -1.2x | -1.0x | -1.2x | -1.5x | -1.1x |
|---|
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | -1.1x |
