Biostime International Holdings Ltd reports 68.8% Net Income decline while 1.8% Revenue growth
30/03/2016 • About Biostime International Holdings Ltd (
$1112) • By InTwits
Biostime International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 14.8% in 2015 vs. 24.3% in 2014 vs. 30.0% in 2011
- Biostime International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 3.3%.
- CAPEX is quite volatile: 109 in 2015, 135 in 2014, 136 in 2013, 39.3 in 2012, 38.8 in 2011
- The company has business model with low profitability: ROIC is at 7.3%
- It operates with high leverage: Net Debt/EBITDA is 8.8x while industry average is -2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Biostime International Holdings Ltd ($1112) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,189 | 3,382 | 4,561 | 4,732 | 4,819 | 1.8% |
| Gross Profit | 1,456 | 2,229 | 2,975 | 2,927 | 2,985 | 2.0% |
| SG&A | 791 | 1,195 | 1,690 | 1,763 | 2,256 | 28.0% |
| EBITDA | 657 | 1,026 | 1,261 | 1,150 | 715 | -37.8% |
| Net Income | 527 | 743 | 821 | 807 | 251 | -68.8% |
Balance Sheet
|
|---|
| Cash | 1,490 | 727 | 808 | 2,447 | 1,115 | -54.4% |
| Short Term Debt | 0 | 271 | 751 | 0 | 4,740 | |
| Long Term Debt | 0 | 0 | 0 | 2,411 | 2,659 | 10.3% |
Cash flow
|
|---|
| Capex | 39 | 39 | 136 | 135 | 109 | -19.0% |
Ratios
|
|---|
| Revenue growth | 77.5% | 54.5% | 34.9% | 3.7% | 1.8% | |
| EBITDA growth | 93.8% | 56.3% | 22.8% | -8.8% | -37.8% | |
| Gross Margin | 66.5% | 65.9% | 65.2% | 61.9% | 61.9% | 0.1% |
| EBITDA Margin | 30.0% | 30.4% | 27.6% | 24.3% | 14.8% | -9.5% |
| Net Income Margin | 24.1% | 22.0% | 18.0% | 17.1% | 5.2% | -11.8% |
| SG&A, % of revenue | 36.1% | 35.3% | 37.1% | 37.3% | 46.8% | 9.6% |
| CAPEX, % of revenue | 1.8% | 1.2% | 3.0% | 2.8% | 2.3% | -0.6% |
| ROIC | 34.3% | 41.7% | 39.9% | 24.7% | 7.3% | -17.4% |
| ROE | 29.0% | 34.6% | 33.9% | 29.7% | 8.1% | -21.6% |
| Net Debt/EBITDA | -2.3x | -0.4x | -0.0x | -0.0x | 8.8x | 8.8x |
Revenue and profitability
The company's Revenue increased slightly on 1.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from 11.2% to 12.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 9.6 pp from 37.3% to 46.8% in 2015.
Net Income marign dropped on 11.8 pp from 17.1% to 5.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.3%. The company showed small growth in CAPEX/Revenue of 1.1 pp from 1.2% in 2012 to 2.3% in 2015. For the last three years the average CAPEX/Revenue was 2.7%.
Return on investment
The company operates at low ROIC (7.25%) and ROE (8.10%). ROIC dropped on 17.4 pp from 24.7% to 7.3% in 2015. ROE dropped on 21.6 pp from 29.7% to 8.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.8x and Debt / EBITDA is 10.3x. Net Debt / EBITDA surged on 8.8x from -0.032x to 8.8x in 2015. Debt jumped on 207% in 2015 while cash dropped on 54.4% in 2015.
Management team
Biostime International Holdings Ltd's CEO Luo Fei has spent 8 years at the company.
Appendix 1: Peers in Household Products/Wares
Below we provide Biostime International Holdings Ltd benchmarking against other companies in Household Products/Wares 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 |
|---|
| Lisi Group Holdings Ltd ($526) | | 2.5% | -23.5% | 160.0% | 47.9% |
| Tempus Holdings Ltd ($6880) | | 17.3% | 5.5% | 31.1% | 14.7% |
| Goodbaby International Holdings Ltd ($1086) | | 15.5% | -8.0% | 46.0% | 13.7% |
| Samsonite International SA ($1910) | | 13.2% | 15.0% | 15.4% | 3.5% |
| King's Flair International Holdings Ltd ($6822) | | 11.2% | 14.8% | 10.0% | 2.6% |
| |
|---|
| Median (7 companies) | -4.3% | 11.2% | 3.6% | 11.3% | 3.5% |
|---|
| Biostime International Holdings Ltd ($1112) | | 54.5% | 34.9% | 3.7% | 1.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tempus Holdings Ltd ($6880) | 71.5% | 68.4% | 64.8% | 64.6% | 65.5% |
| Carpenter Tan Holdings Ltd ($837) | 68.4% | 66.9% | 67.0% | 65.8% | 64.5% |
| Samsonite International SA ($1910) | 54.8% | 53.7% | 53.4% | 52.9% | 52.6% |
| Goodbaby International Holdings Ltd ($1086) | 17.1% | 19.1% | 22.9% | 25.0% | 29.5% |
| Lisi Group Holdings Ltd ($526) | 22.4% | 24.5% | 20.0% | 19.6% | 22.5% |
| |
|---|
| Median (7 companies) | 20.6% | 21.7% | 22.9% | 25.0% | 29.5% |
|---|
| Biostime International Holdings Ltd ($1112) | 66.5% | 65.9% | 65.2% | 61.9% | 61.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 52.8% | 49.0% | 48.1% | 48.6% | 46.7% |
| Samsonite International SA ($1910) | 15.9% | 15.9% | 16.0% | 14.9% | 15.1% |
| King's Flair International Holdings Ltd ($6822) | 7.0% | 8.3% | 7.9% | 9.7% | 14.6% |
| Lisi Group Holdings Ltd ($526) | 11.7% | 11.8% | -0.3% | 4.4% | 10.0% |
| Goodbaby International Holdings Ltd ($1086) | 5.8% | 7.1% | 7.4% | 4.9% | 6.8% |
| |
|---|
| Median (7 companies) | 11.7% | 9.9% | 7.4% | 4.9% | 10.0% |
|---|
| Biostime International Holdings Ltd ($1112) | 30.0% | 30.4% | 27.6% | 24.3% | 14.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lisi Group Holdings Ltd ($526) | 7.9% | 7.1% | 11.3% | 6.1% | 13.1% |
| Samsonite International SA ($1910) | 2.4% | 2.1% | 2.8% | 3.0% | 2.8% |
| Goodbaby International Holdings Ltd ($1086) | 3.9% | 2.9% | 2.8% | 2.6% | 2.6% |
| Tempus Holdings Ltd ($6880) | 1.0% | 0.9% | 4.0% | 2.8% | 2.4% |
| Kenford Group Holdings Ltd ($464) | 2.2% | 1.4% | 2.3% | 1.9% | 1.8% |
| |
|---|
| Median (7 companies) | 2.4% | 2.1% | 2.8% | 2.6% | 2.4% |
|---|
| Biostime International Holdings Ltd ($1112) | 1.8% | 1.2% | 3.0% | 2.8% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| King's Flair International Holdings Ltd ($6822) | | 39.4% | 41.9% | 49.5% | 46.7% |
| Samsonite International SA ($1910) | 18.5% | 20.8% | 21.8% | 21.1% | 20.3% |
| Carpenter Tan Holdings Ltd ($837) | 35.2% | 30.3% | 24.6% | 20.7% | 17.6% |
| Goodbaby International Holdings Ltd ($1086) | 7.3% | 10.7% | 8.8% | 3.9% | 6.1% |
| Tempus Holdings Ltd ($6880) | 34.9% | 18.2% | 1.3% | 2.5% | 4.2% |
| |
|---|
| Median (7 companies) | 13.2% | 10.7% | 6.7% | 2.5% | 6.1% |
|---|
| Biostime International Holdings Ltd ($1112) | 34.3% | 41.7% | 39.9% | 24.7% | 7.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lisi Group Holdings Ltd ($526) | 2.9x | 3.4x | | 36.8x | 9.6x |
| Goodbaby International Holdings Ltd ($1086) | -2.0x | -1.3x | -0.5x | 5.9x | 2.1x |
| Samsonite International SA ($1910) | -0.5x | -0.4x | -0.6x | -0.2x | -0.3x |
| Carpenter Tan Holdings Ltd ($837) | -1.9x | -2.5x | -2.1x | -0.9x | -1.5x |
| King's Flair International Holdings Ltd ($6822) | -0.1x | -1.1x | -1.2x | -0.9x | -2.0x |
| |
|---|
| Median (7 companies) | -0.7x | -1.0x | -1.2x | -0.9x | -1.5x |
|---|
| Biostime International Holdings Ltd ($1112) | -2.3x | -0.4x | -0.0x | -0.0x | 8.8x |
