Pak Fah Yeow International Ltd Net Income dropped on 58.3% in 2015 and EBITDA Margin decreased on 8.1 pp from 52.4% to 44.3%
30/03/2016 • About Pak Fah Yeow International Ltd (
$239) • By InTwits
Pak Fah Yeow International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pak Fah Yeow International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has business model with average profitability: ROIC is at 11.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pak Fah Yeow International Ltd ($239) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 115.9 | 128.5 | 161.0 | 186.3 | 181.9 | -2.4% |
| EBITDA | 33.3 | 43.5 | 45.7 | 97.6 | 80.6 | -17.4% |
| Net Income | 46.2 | 64.3 | 70.9 | 146.5 | 61.0 | -58.3% |
Balance Sheet
|
|---|
| Cash | 6.5 | 21.0 | 12.6 | 10.5 | 16.7 | 59.6% |
| Short Term Debt | 72.3 | 56.0 | 50.0 | 43.8 | 35.1 | -19.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.9 | 1.5 | 1.9 | 0.9 | 0.5 | -49.5% |
Ratios
|
|---|
| Revenue growth | 7.5% | 10.9% | 25.2% | 15.7% | -2.4% | |
| EBITDA growth | -10.7% | 30.6% | 5.0% | 113.6% | -17.4% | |
| EBITDA Margin | 28.7% | 33.9% | 28.4% | 52.4% | 44.3% | -8.1% |
| Net Income Margin | 39.9% | 50.1% | 44.0% | 78.6% | 33.5% | -45.1% |
| CAPEX, % of revenue | 1.7% | 1.2% | 1.2% | 0.5% | 0.3% | -0.2% |
| ROIC | 6.7% | 7.9% | 7.4% | 14.4% | 11.1% | -3.4% |
| ROE | 12.4% | 14.9% | 14.3% | 25.7% | 9.8% | -15.9% |
| Net Debt/EBITDA | 2.0x | 0.8x | 0.8x | 0.3x | 0.2x | -0.1x |
Revenue and profitability
Pak Fah Yeow International Ltd's Revenue decreased on 2.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 8.1 pp from 52.4% to 44.3% in 2015.
Net Income marign dropped on 45.1 pp from 78.6% to 33.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.25% in 2015. CAPEX/Revenue decreased slightly on 0.93 pp from 1.2% in 2012 to 0.25% in 2015. It's average CAPEX/Revenue for the last three years was 0.64%.
Return on investment
The company operates at low ROIC (11.07%) and ROE (9.79%). ROIC decreased on 3.4 pp from 14.4% to 11.1% in 2015. ROE dropped on 15.9 pp from 25.7% to 9.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.1x from 0.3x to 0.2x in 2015. Debt dropped on 19.7% in 2015 while cash jumped on 59.6% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Pak Fah Yeow International 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% | 13.5% | 15.8% | 4.0% |
|---|
| Pak Fah Yeow International Ltd ($239) | | 10.9% | 25.2% | 15.7% | -2.4% |
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 (38 companies) | 38.3% | 39.2% | 37.8% | 49.1% | 50.0% |
|---|
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% | 18.7% | 19.7% | 21.4% | 20.0% |
|---|
| Pak Fah Yeow International Ltd ($239) | 28.7% | 33.9% | 28.4% | 52.4% | 44.3% |
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% | 8.3% | 9.7% | 7.6% | 4.5% |
|---|
| Pak Fah Yeow International Ltd ($239) | 1.7% | 1.2% | 1.2% | 0.5% | 0.3% |
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% | 10.5% |
|---|
| Pak Fah Yeow International Ltd ($239) | 6.7% | 7.9% | 7.4% | 14.4% | 11.1% |
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 |
|---|
| Pak Fah Yeow International Ltd ($239) | 2.0x | 0.8x | 0.8x | 0.3x | 0.2x |
