Tianjin TEDA Biomedical Engineering Co Ltd reports 43.7% Net Income growth and almost no change in EBITDA Margin of 9.2%
31/03/2016 • About Tianjin TEDA Biomedical Engineering Co Ltd (
$8189) • By InTwits
Tianjin TEDA Biomedical Engineering Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tianjin TEDA Biomedical Engineering Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 17.7%.
- CAPEX is quite volatile: 7.2 in 2015, 22.6 in 2014, 8.0 in 2013, 10.7 in 2012, 9.4 in 2011
- The company has business model with low profitability: ROIC is at 9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tianjin TEDA Biomedical Engineering Co Ltd ($8189) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 511.2 | 677.6 | 583.1 | 470.3 | 501.6 | 6.7% |
| Gross Profit | 99.3 | 136.3 | 130.6 | 78.7 | 96.7 | 22.9% |
| SG&A | 66.9 | 80.1 | 75.3 | 37.2 | 45.0 | 21.1% |
| EBITDA | 30.8 | 46.9 | 43.1 | 42.9 | 46.2 | 7.6% |
| Net Income | 14.4 | 24.0 | 21.4 | 17.8 | 25.6 | 43.7% |
Balance Sheet
|
|---|
| Cash | 32.3 | 23.3 | 43.1 | 48.4 | 105.6 | 118.3% |
| Short Term Debt | 93.5 | 115.3 | 103.3 | 87.3 | 45.0 | -48.5% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 9.4 | 10.7 | 8.0 | 22.6 | 7.2 | -68.1% |
Ratios
|
|---|
| Revenue growth | 19.1% | 32.6% | -13.9% | -19.4% | 6.7% | |
| EBITDA growth | 45.3% | 52.1% | -8.0% | -0.4% | 7.6% | |
| Gross Margin | 19.4% | 20.1% | 22.4% | 16.7% | 19.3% | 2.5% |
| EBITDA Margin | 6.0% | 6.9% | 7.4% | 9.1% | 9.2% | 0.1% |
| Net Income Margin | 2.8% | 3.5% | 3.7% | 3.8% | 5.1% | 1.3% |
| SG&A, % of revenue | 13.1% | 11.8% | 12.9% | 7.9% | 9.0% | 1.1% |
| CAPEX, % of revenue | 1.8% | 1.6% | 1.4% | 4.8% | 1.4% | -3.4% |
| ROIC | 7.5% | 12.4% | 10.1% | 9.8% | 9.5% | -0.3% |
| ROE | 9.7% | 14.3% | 11.2% | 8.9% | 9.9% | 1.0% |
| Net Debt/EBITDA | 2.0x | 2.0x | 1.4x | 0.9x | -1.3x | -2.2x |
Revenue and profitability
The company's Revenue increased on 6.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from -13.3% to -9.3% in 2015.
Gross Margin increased on 2.5 pp from 16.7% to 19.3% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 7.9% to 9.0% in 2015.
Net Income marign increased slightly on 1.3 pp from 3.8% to 5.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
Tianjin TEDA Biomedical Engineering Co Ltd's CAPEX/Revenue was 1.4% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 2.5%.
Return on investment
The company operates at low ROIC (9.54%) and ROE (9.87%). ROIC showed almost no change in 2015. ROE increased slightly on 0.97 pp from 8.9% to 9.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 2.2x from 0.9x to -1.3x in 2015. Debt dropped on 48.5% in 2015 while cash surged on 118% in 2015.
Appendix 1: Peers in Biotechnology
Below you can find Tianjin TEDA Biomedical Engineering Co Ltd benchmarking vs. other companies in Biotechnology 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 |
|---|
| Essex Bio-technology Ltd ($1061) | | 25.6% | 29.9% | 49.3% | 26.2% |
| Bloomage BioTechnology Corp Ltd ($963) | | 33.4% | 36.4% | 28.3% | 35.2% |
| Uni-Bio Science Group Ltd ($690) | -48.2% | -25.7% | 46.1% | 23.1% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | | 73.7% | 78.9% | 13.2% | 23.1% |
| Amgen Inc ($4332) | | 10.8% | 8.2% | 7.4% | 8.0% |
| |
|---|
| Median (8 companies) | 2.6% | 18.2% | 33.2% | 10.3% | 24.6% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | | 32.6% | -13.9% | -19.4% | 6.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 82.8% | 89.9% | 92.2% | 92.2% | 91.4% |
| Uni-Bio Science Group Ltd ($690) | 62.1% | 67.2% | 79.5% | 80.0% | |
| Essex Bio-technology Ltd ($1061) | 90.5% | 91.2% | 89.6% | 79.3% | 81.0% |
| Bloomage BioTechnology Corp Ltd ($963) | 73.2% | 69.3% | 79.9% | 78.0% | 74.9% |
| Amgen Inc ($4332) | 84.4% | 81.5% | 82.1% | 78.0% | 80.5% |
| |
|---|
| Median (8 companies) | 68.8% | 68.3% | 79.7% | 78.0% | 77.7% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 19.4% | 20.1% | 22.4% | 16.7% | 19.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 56.2% | 46.8% | 39.2% | 45.2% | 44.1% |
| Amgen Inc ($4332) | 34.5% | 38.6% | 38.3% | 41.3% | 48.8% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 35.5% | 33.4% | 29.0% | 31.5% | 29.3% |
| Essex Bio-technology Ltd ($1061) | 18.0% | 19.0% | 21.9% | 21.3% | 22.6% |
| CK Life Sciences International Holdings Inc ($775) | 9.3% | 9.9% | 10.0% | 10.7% | 11.3% |
| |
|---|
| Median (8 companies) | 19.1% | 14.4% | 16.0% | 16.0% | 26.0% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 6.0% | 6.9% | 7.4% | 9.1% | 9.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Regenerative Medicine International Ltd ($8158) | 1,076.2% | 40,271.9% | 810.7% | 3,305.9% | 1,295.1% |
| Uni-Bio Science Group Ltd ($690) | 5.1% | 23.9% | 28.9% | 35.5% | |
| Bloomage BioTechnology Corp Ltd ($963) | 7.0% | 35.8% | 30.4% | 24.6% | 41.0% |
| CK Life Sciences International Holdings Inc ($775) | 5.4% | 3.8% | 5.8% | 9.9% | 6.0% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 24.6% | 49.3% | 13.6% | 9.4% | 6.6% |
| |
|---|
| Median (8 companies) | 8.4% | 29.9% | 12.0% | 9.6% | 6.3% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 1.8% | 1.6% | 1.4% | 4.8% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Essex Bio-technology Ltd ($1061) | 24.7% | 22.6% | 25.2% | 28.5% | 31.4% |
| Bloomage BioTechnology Corp Ltd ($963) | 33.7% | 30.1% | 24.1% | 27.2% | 17.1% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 15.7% | 20.0% | 20.9% | 18.6% | 17.6% |
| Amgen Inc ($4332) | 11.1% | 13.0% | 11.7% | 11.2% | 14.6% |
| CK Life Sciences International Holdings Inc ($775) | 3.0% | 4.2% | 4.1% | 4.3% | 4.8% |
| |
|---|
| Median (8 companies) | 11.3% | 8.6% | 7.9% | 7.7% | 15.8% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 7.5% | 12.4% | 10.1% | 9.8% | 9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CK Life Sciences International Holdings Inc ($775) | 5.4x | 4.3x | 6.1x | 6.4x | 6.0x |
| Amgen Inc ($4332) | 2.7x | 3.5x | 4.0x | 3.3x | 2.6x |
| Bloomage BioTechnology Corp Ltd ($963) | -1.2x | -0.5x | -0.3x | -0.5x | 1.6x |
| Essex Bio-technology Ltd ($1061) | -1.0x | 0.3x | -0.0x | -0.1x | -0.1x |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | -0.7x | -0.4x | -2.4x | -2.2x | -1.9x |
| |
|---|
| Median (5 companies) | 0.8x | 1.9x | -0.0x | -0.1x | 1.6x |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 2.0x | 2.0x | 1.4x | 0.9x | -1.3x |
