Lansen Pharmaceutical Holdings Ltd Net Income dropped on 85.2% in 2015 and EBITDA Margin decreased on 2.0 pp from 19.2% to 17.2%
30/03/2016 • About Lansen Pharmaceutical Holdings Ltd (
$503) • By InTwits
Lansen Pharmaceutical Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lansen Pharmaceutical Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 192.9%.
- CAPEX is quite volatile: 3.7 in 2015, 2.8 in 2014, 6.4 in 2013, 7.8 in 2012, 3.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
- It operates with high leverage: Net Debt/EBITDA is 4.7x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lansen Pharmaceutical Holdings Ltd ($503) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 74.5 | 93.8 | 95.1 | 116.8 | 93.3 | -20.1% |
| Gross Profit | 44.4 | 54.4 | 52.2 | 62.5 | 48.0 | -23.2% |
| SG&A | | 41.1 | 39.7 | 47.2 | 39.4 | -16.4% |
| EBITDA | 14.8 | 17.8 | 17.3 | 22.5 | 16.1 | -28.5% |
| Net Income | 12.5 | 14.0 | 11.7 | 14.0 | 2.1 | -85.2% |
Balance Sheet
|
|---|
| Cash | 15.6 | 11.4 | 11.0 | 15.8 | 19.0 | 20.0% |
| Short Term Debt | 19.9 | 42.3 | 59.2 | 91.8 | 93.1 | 1.5% |
| Long Term Debt | 9.2 | 0.0 | 0.0 | 0.0 | 1.1 | |
Cash flow
|
|---|
| Capex | 3.2 | 7.8 | 6.4 | 2.8 | 3.7 | 33.6% |
Ratios
|
|---|
| Revenue growth | 27.1% | 26.0% | 1.3% | 22.9% | -20.1% | |
| EBITDA growth | 11.0% | 19.9% | -2.8% | 29.8% | -28.5% | |
| Gross Margin | 59.6% | 58.0% | 54.9% | 53.5% | 51.4% | -2.1% |
| EBITDA Margin | 19.9% | 19.0% | 18.2% | 19.2% | 17.2% | -2.0% |
| Net Income Margin | 16.7% | 14.9% | 12.3% | 12.0% | 2.2% | -9.7% |
| SG&A, % of revenue | | 43.8% | 41.8% | 40.4% | 42.2% | 1.8% |
| CAPEX, % of revenue | 4.3% | 8.3% | 6.7% | 2.4% | 3.9% | 1.6% |
| ROIC | 11.1% | 11.1% | 9.2% | 10.0% | 6.2% | -3.8% |
| ROE | 13.0% | 13.7% | 10.8% | 12.4% | 1.9% | -10.5% |
| Net Debt/EBITDA | 0.9x | 1.7x | 2.8x | 3.4x | 4.7x | 1.3x |
Revenue and profitability
Lansen Pharmaceutical Holdings Ltd's Revenue dropped on 20.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from 17.5% to 55.5% in FY2015.
Gross Margin decreased on 2.1 pp from 53.5% to 51.4% in 2015. SG&A as a % of Revenue increased slightly on 1.8 pp from 40.4% to 42.2% in 2015.
Net Income marign decreased on 9.7 pp from 12.0% to 2.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.9% in 2015. The company showed decline in CAPEX/Revenue of 4.3 pp from 8.3% in 2012 to 3.9% in 2015. For the last three years the average CAPEX/Revenue was 4.3%.
Return on investment
The company operates at low ROIC (6.18%) and ROE (1.92%). ROIC decreased on 3.8 pp from 10.0% to 6.2% in 2015. ROE dropped on 10.5 pp from 12.4% to 1.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 5.9x. Net Debt / EBITDA jumped on 1.3x from 3.4x to 4.7x in 2015. Debt increased on 2.7% in 2015 while cash jumped on 20.0% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Lansen Pharmaceutical Holdings 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Health Group Inc ($8225) | | 58.5% | -48.0% | -60.1% | 244.1% |
| Wai Yuen Tong Medicine Holdings Ltd ($897) | | -9.9% | 45.9% | -10.5% | 105.6% |
| Oriental Unicorn Agricultural Group Ltd ($8120) | | 30.2% | -78.1% | 16.8% | 100.8% |
| China Traditional Chinese Medicine Co Ltd ($570) | | 22.3% | 35.2% | 90.0% | 40.0% |
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | | 37.0% | 13.5% | 9.4% | 30.5% |
| |
|---|
| Median (38 companies) | 7.4% | 14.3% | 13.7% | 15.3% | 4.0% |
|---|
| Lansen Pharmaceutical Holdings Ltd ($503) | | 26.0% | 1.3% | 22.9% | -20.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Luye Pharma Group Ltd ($2186) | 83.0% | 83.5% | 83.6% | 81.0% | 81.4% |
| Consun Pharmaceutical Group Ltd ($1681) | 75.5% | 75.7% | 79.1% | 78.3% | 80.7% |
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 83.9% | 82.0% | 81.5% | 80.9% | 79.9% |
| Sino Biopharmaceutical Ltd ($1177) | 78.5% | 78.5% | 77.5% | 76.4% | 77.7% |
| China Health Group Inc ($8225) | 38.7% | 43.4% | 33.6% | 76.2% | 75.7% |
| |
|---|
| Median (37 companies) | 38.0% | 39.1% | 37.2% | 48.7% | 49.9% |
|---|
| Lansen Pharmaceutical Holdings Ltd ($503) | 59.6% | 58.0% | 54.9% | 53.5% | 51.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 132.2% | 193.8% | 205,840.0% | -15,344.8% | 49,650.0% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 48.4% | 38.8% | 65.4% | 70.9% | 93.3% |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 32.9% | 60.6% | 21.0% | 28.8% | 61.1% |
| U-Home Group Holdings Ltd ($2327) | 23.9% | 9.8% | -16.6% | -46.7% | 51.7% |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 29.7% | 41.3% | 45.4% | 47.5% | 49.1% |
| |
|---|
| Median (38 companies) | 17.0% | 19.4% | 20.2% | 21.4% | 21.6% |
|---|
| Lansen Pharmaceutical Holdings Ltd ($503) | 19.9% | 19.0% | 18.2% | 19.2% | 17.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hao Wen Holdings Ltd ($8019) | 6.4% | 30.0% | 2.3% | 38.2% | 44.8% |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 3.8% | 0.9% | 1.4% | 7.6% | 40.5% |
| Lee's Pharmaceutical Holdings Ltd ($950) | 8.5% | 18.6% | 20.9% | 7.1% | 26.1% |
| Tianda Pharmaceuticals Ltd ($455) | 4.8% | 6.0% | 3.9% | 10.5% | 24.4% |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 19.5% | 16.8% | 52.4% | 39.6% | 18.7% |
| |
|---|
| Median (37 companies) | 10.9% | 8.2% | 9.7% | 7.6% | 4.5% |
|---|
| Lansen Pharmaceutical Holdings Ltd ($503) | 4.3% | 8.3% | 6.7% | 2.4% | 3.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Biopharmaceutical Ltd ($1177) | 19.9% | 26.2% | 26.8% | 26.5% | 26.2% |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | | 25.3% | 27.5% | 23.8% | 25.9% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 14.3% | 13.7% | 18.3% | 22.0% | 25.4% |
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 17.7% | 12.6% | 14.0% | 17.8% | 23.5% |
| Lee's Pharmaceutical Holdings Ltd ($950) | 31.3% | 26.1% | 22.0% | 22.4% | 22.7% |
| |
|---|
| Median (39 companies) | 8.5% | 12.4% | 9.3% | 12.2% | 11.5% |
|---|
| Lansen Pharmaceutical Holdings Ltd ($503) | 11.1% | 11.1% | 9.2% | 10.0% | 6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 2.2x | 2.3x | 3.7x | | 22.2x |
| U-Home Group Holdings Ltd ($2327) | 3.3x | 10.1x | | | 9.9x |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 2.5x | 5.4x | 4.0x | 3.4x | 4.3x |
| United Laboratories International Holdings Ltd/The ($3933) | 4.4x | 6.5x | 4.6x | 4.2x | 4.0x |
| Shandong Xinhua Pharmaceutical Co Ltd ($719) | 1.4x | 3.5x | 3.4x | 2.8x | 3.4x |
| |
|---|
| Median (31 companies) | -0.8x | -0.4x | -0.5x | -0.6x | -0.4x |
|---|
| Lansen Pharmaceutical Holdings Ltd ($503) | 0.9x | 1.7x | 2.8x | 3.4x | 4.7x |
