Phoenix Healthcare Group Co Ltd reports 27.4% Net Income decline while 13.8% Revenue growth
30/03/2016 • About Phoenix Healthcare Group Co Ltd (
$1515) • By InTwits
Phoenix Healthcare Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Phoenix Healthcare Group Co Ltd is a fast growth stock: 2015 revenue growth was 13.8%, 5 year revenue CAGR was 28.3% at 2015 ROIC 12.8%
- Phoenix Healthcare Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 6.2%.
- CAPEX is quite volatile: 100 in 2015, 49.9 in 2014, 65.5 in 2013, 52.1 in 2012, 25.2 in 2011
- The company has highly profitable business model: ROIC is at 12.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Phoenix Healthcare Group Co Ltd ($1515) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 509 | 758 | 887 | 1,206 | 1,372 | 13.8% |
| Gross Profit | 123 | 185 | 213 | 298 | 330 | 10.7% |
| SG&A | 33 | 50 | 74 | 86 | 150 | 75.2% |
| EBITDA | 111 | 201 | 236 | 311 | 280 | -10.1% |
| Net Income | 48 | 101 | 90 | 230 | 167 | -27.4% |
Balance Sheet
|
|---|
| Cash | 331 | 113 | 1,106 | 996 | 939 | -5.7% |
| Short Term Debt | 200 | 7 | 200 | 0 | 0 | |
| Long Term Debt | 0 | 232 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 34 | 28 | 21 | 36 | 32 | -11.3% |
Ratios
|
|---|
| Revenue growth | 29.3% | 48.8% | 17.1% | 35.9% | 13.8% | |
| EBITDA growth | 31.1% | 80.9% | 17.2% | 32.1% | -10.1% | |
| Gross Margin | 24.1% | 24.4% | 24.0% | 24.7% | 24.0% | -0.7% |
| EBITDA Margin | 21.8% | 26.5% | 26.5% | 25.8% | 20.4% | -5.4% |
| Net Income Margin | 9.4% | 13.3% | 10.1% | 19.1% | 12.2% | -6.9% |
| SG&A, % of revenue | 6.4% | 6.6% | 8.4% | 7.1% | 10.9% | 3.8% |
| CAPEX, % of revenue | 6.7% | 3.7% | 2.4% | 3.0% | 2.3% | -0.7% |
| ROIC | 11.9% | 17.9% | 14.3% | 14.6% | 12.8% | -1.9% |
| ROE | 11.0% | 18.8% | 8.6% | 14.2% | 9.9% | -4.3% |
| Net Debt/EBITDA | -1.2x | 0.6x | -3.8x | -3.2x | -3.4x | -0.2x |
Revenue and profitability
Phoenix Healthcare Group Co Ltd's Revenue jumped on 13.8% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 5.4 pp from 25.8% to 20.4% in 2015.
Gross Margin decreased slightly on 0.66 pp from 24.7% to 24.0% in 2015. SG&A as a % of Revenue increased on 3.8 pp from 7.1% to 10.9% in 2015.
Net Income marign decreased on 6.9 pp from 19.1% to 12.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Phoenix Healthcare Group Co Ltd's CAPEX/Revenue was 2.3% in 2015. Phoenix Healthcare Group Co Ltd showed small CAPEX/Revenue decline of 1.4 pp from 3.7% in 2012 to 2.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at good ROIC (12.78%) while ROE is low (9.90%). ROIC decreased slightly on 1.9 pp from 14.6% to 12.8% in 2015. ROE decreased on 4.3 pp from 14.2% to 9.9% in 2015.
Leverage (Debt)
The company has no debt. Cash decreased on 5.7% in 2015.
Appendix 1: Peers in Healthcare-Services
Below we provide Phoenix Healthcare Group Co Ltd benchmarking against other companies in Healthcare-Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | | 0.7% | 3.7% | 39.5% | 127.0% |
| China Natural Investment Co Ltd ($8250) | | 22.3% | -13.8% | 509.5% | 21.9% |
| Hua Xia Healthcare Holdings Ltd ($8143) | | 25.4% | 10.1% | 11.0% | -20.6% |
| |
|---|
| Median (3 companies) | 31.9% | 19.0% | -1.8% | 25.3% | 21.9% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | | 48.8% | 17.1% | 35.9% | 13.8% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 33.6% | 34.7% | 33.9% | 32.5% | 42.7% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 13.0% | 12.8% | 11.8% | 12.0% | 15.6% |
| China Natural Investment Co Ltd ($8250) | 45.6% | 38.1% | 32.4% | 10.6% | 12.4% |
| |
|---|
| Median (3 companies) | 33.6% | 34.7% | 32.4% | 12.0% | 15.6% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 24.1% | 24.4% | 24.0% | 24.7% | 24.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 28.6% | -135.5% | -44.4% | -0.3% | 19.4% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 5.9% | 5.5% | 4.6% | 5.2% | 2.1% |
| China Natural Investment Co Ltd ($8250) | -24.9% | -33.3% | -39.5% | -7.2% | -9.6% |
| |
|---|
| Median (3 companies) | 12.4% | -13.9% | -17.5% | -3.7% | 2.1% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 21.8% | 26.5% | 26.5% | 25.8% | 20.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 23.5% | 5.0% | 48.6% | 16.8% | 22.1% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 0.3% | 0.9% | 0.5% | 0.5% | 1.2% |
| China Natural Investment Co Ltd ($8250) | 197.7% | 36.8% | 16.8% | 2.1% | 0.2% |
| |
|---|
| Median (3 companies) | 12.6% | 2.9% | 9.0% | 3.4% | 1.2% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 6.7% | 3.7% | 2.4% | 3.0% | 2.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Town Health International Medical Group Ltd ($3886) | 3.8% | -29.7% | -10.9% | -2.3% | 4.4% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 6.7% | 7.5% | 6.5% | 8.1% | 2.2% |
| China Natural Investment Co Ltd ($8250) | -5.4% | -6.4% | -4.9% | -4.5% | -5.6% |
| |
|---|
| Median (3 companies) | 2.6% | -1.8% | -1.2% | -3.4% | 2.2% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 11.9% | 17.9% | 14.3% | 14.6% | 12.8% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 2.3x | 1.7x | 1.9x | 0.9x | 3.5x |
| Town Health International Medical Group Ltd ($3886) | 0.7x | | | | -7.7x |
| |
|---|
| Median (2 companies) | 0.7x | -9.5x | 0.5x | 0.9x | -2.1x |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | -1.2x | 0.6x | -3.8x | -3.2x | -3.4x |
