Lijun International Pharmaceutical Holding Co Ltd CAPEX dropped on 49.8% in 2015 while Revenue increased on 6.2%
30/03/2016 • About Lijun International Pharmaceutical Holding Co Ltd (
$2005) • By InTwits
Lijun International Pharmaceutical Holding Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 34.1% in 2015, 38.9% in 2014, 35.9% in 2013, 21.5% in 2012, 6.2% in 2011
- Lijun International Pharmaceutical Holding Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.4%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 416 in 2015, 828 in 2014, 903 in 2013, 407 in 2012, 420 in 2011
- The company has highly profitable business model: ROIC is at 12.8%
- It operates with high leverage: Net Debt/EBITDA is 1.9x 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.
Lijun International Pharmaceutical Holding Co Ltd ($2005) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,155 | 2,431 | 1,723 | 2,091 | 2,222 | 6.2% |
| Gross Profit | 914 | 1,033 | 829 | 1,065 | 1,050 | -1.5% |
| SG&A | 833 | 629 | 367 | 406 | 472 | 16.2% |
| EBITDA | 134 | 524 | 619 | 814 | 758 | -6.9% |
| Net Income | -41 | 281 | 412 | 603 | 403 | -33.1% |
Balance Sheet
|
|---|
| Cash | 258 | 412 | 337 | 325 | 339 | 4.2% |
| Short Term Debt | 330 | 522 | 733 | 508 | 688 | 35.5% |
| Long Term Debt | 87 | 306 | 455 | 364 | 1,125 | 209.0% |
Cash flow
|
|---|
| Capex | 420 | 407 | 903 | 828 | 416 | -49.8% |
Ratios
|
|---|
| Revenue growth | 9.3% | 12.8% | -29.1% | 21.4% | 6.2% | |
| EBITDA growth | -68.8% | 291.2% | 18.2% | 31.5% | -6.9% | |
| Gross Margin | 42.4% | 42.5% | 48.1% | 50.9% | 47.2% | -3.7% |
| EBITDA Margin | 6.2% | 21.5% | 35.9% | 38.9% | 34.1% | -4.8% |
| Net Income Margin | -1.9% | 11.6% | 23.9% | 28.8% | 18.2% | -10.7% |
| SG&A, % of revenue | 38.7% | 25.9% | 21.3% | 19.4% | 21.2% | 1.8% |
| CAPEX, % of revenue | 19.5% | 16.8% | 52.4% | 39.6% | 18.7% | -20.9% |
| ROIC | 0.5% | 12.2% | 12.6% | 15.0% | 12.8% | -2.1% |
| ROE | -1.8% | 11.7% | 15.4% | 19.7% | 14.3% | -5.4% |
| Net Debt/EBITDA | 1.2x | 0.8x | 1.4x | 0.7x | 1.9x | 1.3x |
Revenue and profitability
The company's Revenue increased on 6.2% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.8 pp from 38.9% to 34.1% in 2015.
Gross Margin decreased on 3.7 pp from 50.9% to 47.2% in 2015. SG&A as a % of Revenue increased slightly on 1.8 pp from 19.4% to 21.2% in 2015.
Net Income marign dropped on 10.7 pp from 28.8% to 18.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 18.7%. The company showed small growth in CAPEX/Revenue of 2.0 pp from 16.8% in 2012 to 18.7% in 2015. It's average CAPEX/Revenue for the last three years was 36.9%.Lijun International Pharmaceutical Holding Co Ltd invested a large share of EBITDA (54.9%) to CAPEX.
Return on investment
The company operates at good ROIC (12.84%) and ROE (14.29%). ROIC decreased on 2.1 pp from 15.0% to 12.8% in 2015. ROE decreased on 5.4 pp from 19.7% to 14.3% in 2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA jumped on 1.3x from 0.7x to 1.9x in 2015. Debt surged on 108% in 2015 while cash increased on 4.2% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Lijun International Pharmaceutical Holding Co Ltd benchmarking vs. other companies in Pharmaceuticals industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% | 15.7% | 13.7% | 15.3% | 3.3% |
|---|
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | | 12.8% | -29.1% | 21.4% | 6.2% |
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% | 50.0% |
|---|
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 42.4% | 42.5% | 48.1% | 50.9% | 47.2% |
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) | 17.4% | 18.7% | 19.7% | 21.4% | 20.0% |
|---|
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 6.2% | 21.5% | 35.9% | 38.9% | 34.1% |
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% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 11.7% | 20.9% | 36.1% | 18.2% | 15.4% |
| |
|---|
| Median (37 companies) | 10.3% | 8.2% | 8.1% | 7.4% | 4.4% |
|---|
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 19.5% | 16.8% | 52.4% | 39.6% | 18.7% |
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) | 9.1% | 12.4% | 9.3% | 11.1% | 10.1% |
|---|
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 0.5% | 12.2% | 12.6% | 15.0% | 12.8% |
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 |
| Lansen Pharmaceutical Holdings Ltd ($503) | 0.9x | 1.7x | 2.8x | 3.4x | 4.7x |
| 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 |
| |
|---|
| Median (31 companies) | -0.8x | -0.4x | -0.5x | -0.6x | -0.4x |
|---|
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 1.2x | 0.8x | 1.4x | 0.7x | 1.9x |
