Jintian Pharmaceutical Group Ltd reports 93.4% Net Income decline and 13.4 pp EBITDA Margin decline from 16.4% to 2.9%
31/03/2016 • About Jintian Pharmaceutical Group Ltd (
$2211) • By InTwits
Jintian Pharmaceutical Group 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: 2.9% in 2015, 16.4% in 2014, 16.5% in 2013, 13.6% in 2012, 16.9% in 2011
- Jintian Pharmaceutical Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jintian Pharmaceutical Group Ltd ($2211) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,474 | 2,326 | 3,323 | 4,356 | 4,806 | 10.3% |
| Gross Profit | 378 | 546 | 936 | 1,267 | 1,341 | 5.8% |
| SG&A | 129 | 217 | 388 | 556 | 1,091 | 96.3% |
| EBITDA | 249 | 316 | 547 | 713 | 141 | -80.2% |
| Net Income | 180 | 214 | 355 | 473 | 31 | -93.4% |
Balance Sheet
|
|---|
| Cash | 713 | 456 | 1,564 | 1,349 | 1,333 | -1.2% |
| Short Term Debt | 0 | 42 | 9 | 378 | 262 | -30.9% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 12 | 15 | 43 | 64 | 6 | -90.5% |
Ratios
|
|---|
| Revenue growth | 71.7% | 57.8% | 42.9% | 31.1% | 10.3% | |
| EBITDA growth | 53.2% | 26.7% | 73.3% | 30.3% | -80.2% | |
| Gross Margin | 25.7% | 23.5% | 28.2% | 29.1% | 27.9% | -1.2% |
| EBITDA Margin | 16.9% | 13.6% | 16.5% | 16.4% | 2.9% | -13.4% |
| Net Income Margin | 12.2% | 9.2% | 10.7% | 10.9% | 0.6% | -10.2% |
| SG&A, % of revenue | 8.8% | 9.3% | 11.7% | 12.8% | 22.7% | 9.9% |
| CAPEX, % of revenue | 0.8% | 0.6% | 1.3% | 1.5% | 0.1% | -1.4% |
| ROIC | 78.8% | 52.8% | 32.1% | 24.0% | 3.2% | -20.8% |
| ROE | 65.5% | 46.9% | 24.5% | 19.1% | 1.2% | -17.9% |
| Net Debt/EBITDA | -2.9x | -1.3x | -2.8x | -1.4x | -7.6x | -6.2x |
Revenue and profitability
The company's Revenue jumped on 10.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.1 pp from 25.3% to 21.1% in 2015.
Gross Margin decreased slightly on 1.2 pp from 29.1% to 27.9% in 2015. SG&A as a % of Revenue increased on 9.9 pp from 12.8% to 22.7% in 2015.
Net Income marign dropped on 10.2 pp from 10.9% to 0.65% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.13%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.96%.
Return on investment
The company operates at low ROIC (3.23%) and ROE (1.20%). ROIC dropped on 20.8 pp from 24.0% to 3.2% in 2015. ROE dropped on 17.9 pp from 19.1% to 1.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -7.6x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 6.2x from -1.4x to -7.6x in 2015. Debt dropped on 30.9% in 2015 while cash decreased slightly on 1.2% in 2015.
Appendix 1: Peers in Retail
Below we provide Jintian Pharmaceutical Group Ltd benchmarking against other companies in Retail 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 Nuclear Industry 23 International Corp Ltd ($611) | | 1.4% | 85.6% | -42.1% | 419.8% |
| Noble House China Holdings Ltd ($8246) | | -5.0% | -20.2% | -24.8% | 117.2% |
| Vongroup Ltd ($318) | | -46.9% | 23.7% | -80.2% | 90.3% |
| Nanjing Sinolife United Co Ltd ($3332) | | 45.6% | 29.5% | 29.6% | 57.3% |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 54.9% | 72.8% | 23.0% | 48.3% |
| |
|---|
| Median (115 companies) | 421.0% | 11.1% | 6.5% | 3.3% | -1.0% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | | 57.8% | 42.9% | 31.1% | 10.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vongroup Ltd ($318) | | | | 95.1% | 99.1% |
| Modern Beauty Salon Holdings Ltd ($919) | 97.3% | 97.4% | 95.9% | 96.8% | 96.7% |
| Moiselle International Holdings Ltd ($130) | 81.4% | 81.2% | 83.8% | 80.6% | 83.2% |
| Embry Holdings Ltd ($1388) | 82.3% | 81.2% | 80.4% | 82.3% | 81.6% |
| Nanjing Sinolife United Co Ltd ($3332) | 80.6% | 86.5% | 89.3% | 90.9% | 80.6% |
| |
|---|
| Median (102 companies) | 39.4% | 37.2% | 36.4% | 35.5% | 34.8% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 25.7% | 23.5% | 28.2% | 29.1% | 27.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Energy Development Holdings Ltd ($228) | -44.2% | -58.1% | -72.3% | -84.0% | 1,070.6% |
| Golden Eagle Retail Group Ltd ($3308) | 52.1% | 48.5% | 47.3% | 42.8% | 55.4% |
| Nanjing Sinolife United Co Ltd ($3332) | 47.8% | 51.6% | 56.9% | 54.4% | 44.8% |
| Lifestyle International Holdings Ltd ($1212) | 49.6% | 47.5% | 47.0% | 44.7% | 43.4% |
| China Dongxiang Group Co Ltd ($3818) | 5.6% | 6.0% | 5.6% | 58.3% | 41.4% |
| |
|---|
| Median (115 companies) | 13.2% | 9.9% | 7.3% | 8.8% | 7.4% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 16.9% | 13.6% | 16.5% | 16.4% | 2.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Culture Landmark Investment Ltd ($674) | 4.6% | 11.6% | 19.4% | 15.7% | 47.2% |
| Springland International Holdings Ltd ($1700) | 20.7% | 31.9% | 17.4% | 26.5% | 36.9% |
| Merry Garden Holdings Ltd ($1237) | 22.7% | 18.6% | 28.6% | 15.1% | 34.2% |
| China Energy Development Holdings Ltd ($228) | 1.4% | 1.6% | 0.2% | 0.0% | 27.4% |
| Golden Eagle Retail Group Ltd ($3308) | 30.6% | 28.5% | 9.4% | 26.7% | 25.4% |
| |
|---|
| Median (115 companies) | 4.0% | 4.3% | 3.6% | 3.8% | 3.5% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 0.8% | 0.6% | 1.3% | 1.5% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 48.1% | 50.7% | -4.6% | 81.3% | 71.8% |
| Starbucks Corp ($4337) | 36.4% | 36.4% | -6.0% | 52.8% | 51.4% |
| Sa Sa International Holdings Ltd ($178) | 45.7% | 53.5% | 52.7% | 49.0% | 39.8% |
| Noble House China Holdings Ltd ($8246) | 60.3% | 17.7% | -67.7% | -113.8% | 35.6% |
| Fairwood Holdings Ltd ($52) | 27.4% | 28.0% | 29.1% | 28.6% | 32.1% |
| |
|---|
| Median (115 companies) | 16.6% | 12.3% | 8.5% | 8.4% | 5.8% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 78.8% | 52.8% | 32.1% | 24.0% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sparkle Roll Group Ltd ($970) | -0.8x | 0.6x | 4.0x | 9.3x | 23.5x |
| Trinity Ltd ($891) | -0.6x | -0.2x | 0.2x | 0.6x | 18.2x |
| Parkson Retail Group Ltd ($3368) | 0.4x | 0.8x | 2.3x | 3.6x | 9.8x |
| Maoye International Holdings Ltd ($848) | 1.7x | 2.9x | 3.3x | 3.4x | 9.0x |
| Century Ginwa Retail Holdings Ltd ($162) | 6.5x | 2.0x | 2.5x | 4.8x | 7.3x |
| |
|---|
| Median (90 companies) | -0.8x | -0.5x | -0.7x | -0.2x | -0.5x |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | -2.9x | -1.3x | -2.8x | -1.4x | -7.6x |
