Shandong Luoxin Pharmaceutical Group Stock Co Ltd demonstrates profitable growth
29/03/2016 • About Shandong Luoxin Pharmaceutical Group Stock Co Ltd (
$8058) • By InTwits
Have you thought about Shandong Luoxin Pharmaceutical Group Stock Co Ltd as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Shandong Luoxin Pharmaceutical Group Stock Co Ltd showed growth in the last financial year. The company's revenue surged on 30.5% in FY2015. At the same time Shandong Luoxin Pharmaceutical Group Stock Co Ltd well managed its profitability and also showed EBITDA growth of 16.5% for the same period.
If we look for the longer period the company showed fast revenue growth of 17.5% from 2012 to 2015 annualy. EBITDA surged on 4.63% from 2012 to 2015 annualy.
Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 1,627 | 2,228 | 2,529 | 2,767 | 3,611 |
|---|
| Revenue growth, % | | 37.0% | 13.5% | 9.4% | 30.5% |
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| Gross margin, % | 61.6% | 67.4% | 65.0% | 68.4% | 68.6% |
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| SG&A, % | | | 5.43% | 7.63% | 10.1% |
|---|
| EBITDA | 517 | 522 | 489 | 513 | 598 |
|---|
| EBITDA growth, % | | 1.0% | -6.3% | 4.9% | 16.5% |
|---|
| EBITDA margin, % | 31.8% | 23.4% | 19.3% | 18.6% | 16.6% |
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| Net Income | 427 | 440 | 429 | 444 | 493 |
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| Net Income margin, % | 26.2% | 19.7% | 16.9% | 16.0% | 13.6% |
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| |
| CAPEX | 89 | 141 | 124 | 235 | 184 |
|---|
| CAPEX/Revenue, % | 5.46% | 6.33% | 4.89% | 8.51% | 5.08% |
|---|
| Debt | 34 | 102 | 6 | 29 | 0 |
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| Cash | 893 | 335 | 187 | 161 | 605 |
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| Net Debt/EBITDA | -1.7x | -0.4x | -0.4x | -0.3x | -1.0x |
|---|
| |
| ROIC, % | 34.4% | 27.6% | 22.2% | 19.9% | 20.8% |
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| ROE, % | 32.3% | 26.2% | 21.9% | 20.0% | 19.7% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 18.6% in FY2014 to 16.6% in FY2015. In the last 3 years the company showed big decline in EBITDA margin of 6.80 pp from 23.4% in 2012 to 16.6% in 2015.
We call Shandong Luoxin Pharmaceutical Group Stock Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 20.8%. Three years ago it was higher at 27.6%. Average ROIC for the last three years was 21.0%.
Shandong Luoxin Pharmaceutical Group Stock Co Ltd showed big decline in Net Income margin of 2.40 pp from 16% to 13.6% in 2015. If we look for the longer period the company showed big decline in Net Income margin of 6.10 pp from 19.7% in 2012 to 13.6% in 2015.
Shandong Luoxin Pharmaceutical Group Stock Co Ltd operates at ROE of 19.7%. It's average ROE for the last three years was 20.5%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.The company's CAPEX/Revenue was 5.08% in FY2015. The company showed big decline in CAPEX/Revenue of 1.24 pp from 6.33% in 2012 to 5.08% in 2015. Average CAPEX/Revenue for the last three years was 6.16%.
Leverage (Debt)
Having such a fast growth profile Shandong Luoxin Pharmaceutical Group Stock Co Ltd keeps negative net debt at -1.0x Net Debt/EBITDA. In the longer period leverage surged on 0.57x from -0.45x in 2012 to -1.01x in 2015.
Peers in Pharmaceuticals
Below we provide Shandong Luoxin Pharmaceutical Group Stock Co 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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) | -8.8% | -10.5% | 13.5% | 64.8% | |
| |
|---|
| Median (41 companies) | 25.8% | 13.4% | 13.5% | 16.8% | 11.3% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | | 37.0% | 13.5% | 9.4% | 30.5% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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) | 37.6% | 38.5% | 35.9% | 48.3% | 48.9% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 61.6% | 67.4% | 65.0% | 68.4% | 68.6% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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) | 17.2% | 19.0% | 20.2% | 21.4% | 21.0% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 31.8% | 23.4% | 19.3% | 18.6% | 16.6% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% | 7.2% | 3.3% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 5.5% | 6.3% | 4.9% | 8.5% | 5.1% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% | |
| 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% | 6.5% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 34.4% | 27.6% | 22.2% | 19.9% | 20.8% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| China NT Pharma Group Co Ltd ($1011) | 0.4x | | | 7.2x | |
| 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) | -0.6x | -0.2x | -0.6x | -0.6x | -1.5x |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | -1.7x | -0.4x | -0.4x | -0.3x | -1.0x |
