Real Nutriceutical Group Ltd Net Income dropped on 30.2% in 2015 and Revenue decreased slightly on 0.52%
31/03/2016 • About Real Nutriceutical Group Ltd (
$2010) • By InTwits
Real Nutriceutical Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Real Nutriceutical Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.2%. At the same time it's a lot of higher than industry average of 8.0%.
- CAPEX is quite volatile: 41.0 in 2015, 27.9 in 2014, 31.2 in 2013, 19.0 in 2012, 187 in 2011
- The company has business model with average profitability: ROIC is at 10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Real Nutriceutical Group Ltd ($2010) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,790 | 1,755 | 1,903 | 2,062 | 2,051 | -0.5% |
| Gross Profit | 1,279 | 1,212 | 1,294 | 1,446 | 1,341 | -7.3% |
| SG&A | 492 | 526 | 566 | 631 | 690 | 9.3% |
| EBITDA | 817 | 752 | 826 | 949 | 873 | -8.1% |
| Net Income | 552 | 466 | 493 | 574 | 401 | -30.2% |
Balance Sheet
|
|---|
| Cash | 1,384 | 1,329 | 1,656 | 1,904 | 2,477 | 30.1% |
| Short Term Debt | 127 | 195 | 435 | 1,043 | 492 | -52.8% |
| Long Term Debt | 0 | 0 | 160 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 347 | 401 | 562 | 466 | 346 | -25.7% |
Ratios
|
|---|
| Revenue growth | 31.9% | -1.9% | 8.4% | 8.3% | -0.5% | |
| EBITDA growth | 42.1% | -7.9% | 9.8% | 14.9% | -8.1% | |
| Gross Margin | 71.5% | 69.1% | 68.0% | 70.1% | 65.4% | -4.8% |
| EBITDA Margin | 45.6% | 42.8% | 43.4% | 46.0% | 42.5% | -3.5% |
| Net Income Margin | 30.8% | 26.5% | 25.9% | 27.9% | 19.6% | -8.3% |
| SG&A, % of revenue | 27.5% | 30.0% | 29.8% | 30.6% | 33.6% | 3.0% |
| CAPEX, % of revenue | 19.4% | 22.9% | 29.5% | 22.6% | 16.9% | -5.7% |
| ROIC | 27.7% | 19.8% | 17.4% | 16.1% | 10.9% | -5.2% |
| ROE | 21.0% | 15.1% | 14.0% | 14.2% | 8.1% | -6.1% |
| Net Debt/EBITDA | -1.5x | -1.5x | -1.3x | -0.9x | -2.3x | -1.4x |
Revenue and profitability
The company's Revenue decreased slightly on 0.52% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.5 pp from 40.5% to 42.1% in 2015.
Gross Margin decreased on 4.8 pp from 70.1% to 65.4% in 2015. SG&A as a % of Revenue increased on 3.0 pp from 30.6% to 33.6% in 2015.
Net Income marign decreased on 8.3 pp from 27.9% to 19.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Real Nutriceutical Group Ltd's CAPEX/Revenue was 16.9% in 2015. Real Nutriceutical Group Ltd's CAPEX/Revenue decreased on 6.0 pp from 22.9% in 2012 to 16.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 23.0%.
Return on investment
The company operates at low ROIC (10.94%) and ROE (8.10%). ROIC decreased on 5.2 pp from 16.1% to 10.9% in 2015. ROE decreased on 6.1 pp from 14.2% to 8.1% in 2015.
Leverage (Debt)
Debt level is -2.3x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.4x from -0.9x to -2.3x in 2015. Debt dropped on 52.8% in 2015 while cash surged on 30.1% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Real Nutriceutical Group 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 (40 companies) | 0.8% | 15.7% | 13.7% | 16.3% | 4.0% |
|---|
| Real Nutriceutical Group Ltd ($2010) | | -1.9% | 8.4% | 8.3% | -0.5% |
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 (39 companies) | 38.0% | 39.1% | 37.2% | 48.7% | 49.9% |
|---|
| Real Nutriceutical Group Ltd ($2010) | 71.5% | 69.1% | 68.0% | 70.1% | 65.4% |
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 (40 companies) | 17.0% | 18.7% | 19.7% | 21.4% | 20.0% |
|---|
| Real Nutriceutical Group Ltd ($2010) | 45.6% | 42.8% | 43.4% | 46.0% | 42.5% |
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 (39 companies) | 10.3% | 8.2% | 8.1% | 7.4% | 4.4% |
|---|
| Real Nutriceutical Group Ltd ($2010) | 19.4% | 22.9% | 29.5% | 22.6% | 16.9% |
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 (41 companies) | 8.5% | 12.2% | 9.3% | 11.1% | 10.1% |
|---|
| Real Nutriceutical Group Ltd ($2010) | 27.7% | 19.8% | 17.4% | 16.1% | 10.9% |
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 (33 companies) | -0.4x | 0.0x | -0.2x | -0.6x | -0.3x |
|---|
| Real Nutriceutical Group Ltd ($2010) | -1.5x | -1.5x | -1.3x | -0.9x | -2.3x |
