Wuyi International Pharmaceutical Co Ltd reports 194% Net Income growth and 1.1% Revenue growth
06/04/2016 • About Wuyi International Pharmaceutical Co Ltd (
$1889) • By InTwits
Wuyi International Pharmaceutical Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wuyi International Pharmaceutical Co Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.5%
- Wuyi International Pharmaceutical Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.6%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 92.1 in 2015, 72.1 in 2014, 283 in 2013, 144 in 2012, 131 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wuyi International Pharmaceutical Co Ltd ($1889) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 569.3 | 528.1 | 532.3 | 549.6 | 555.7 | 1.1% |
| Gross Profit | 203.6 | 179.4 | 142.4 | 118.0 | 119.6 | 1.3% |
| SG&A | | 131.4 | 131.9 | 112.1 | 52.7 | -53.0% |
| EBITDA | 117.0 | 81.9 | 73.3 | 72.4 | 97.5 | 34.7% |
| Net Income | 56.9 | -44.6 | -3.6 | -44.0 | 41.2 | -193.6% |
Balance Sheet
|
|---|
| Cash | 815.8 | 725.1 | 512.4 | 480.5 | 555.2 | 15.6% |
| Short Term Debt | 0.0 | 0.0 | 15.0 | 15.0 | 35.0 | 133.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 130.5 | 144.4 | 283.4 | 72.1 | 92.1 | 27.8% |
Ratios
|
|---|
| Revenue growth | 0.8% | -7.2% | 0.8% | 3.2% | 1.1% | |
| EBITDA growth | -23.7% | -30.0% | -10.5% | -1.3% | 34.7% | |
| Gross Margin | 35.8% | 34.0% | 26.8% | 21.5% | 21.5% | 0.1% |
| EBITDA Margin | 20.5% | 15.5% | 13.8% | 13.2% | 17.5% | 4.4% |
| Net Income Margin | 10.0% | -8.4% | -0.7% | -8.0% | 7.4% | 15.4% |
| SG&A, % of revenue | | 24.9% | 24.8% | 20.4% | 9.5% | -10.9% |
| CAPEX, % of revenue | 22.9% | 27.3% | 53.2% | 13.1% | 16.6% | 3.5% |
| ROIC | 5.1% | 3.2% | 0.7% | 0.4% | 1.5% | 1.1% |
| ROE | 3.6% | -2.9% | -0.2% | -3.0% | 2.7% | 5.7% |
| Net Debt/EBITDA | -7.0x | -8.9x | -6.8x | -6.4x | -5.3x | 1.1x |
Revenue and profitability
The company's Revenue increased slightly on 1.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.6 pp from 4.8% to 0.20% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue dropped on 10.9 pp from 20.4% to 9.5% in 2015.
Net Income marign jumped on 15.4 pp from -8.0% to 7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 16.6%. The company showed big decline in CAPEX/Revenue of 10.8 pp from 27.3% in 2012 to 16.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 27.6%.Wuyi International Pharmaceutical Co Ltd invested a large share of EBITDA (94.5%) to CAPEX.
Return on investment
The company operates at low ROIC (1.54%) and ROE (2.75%). ROIC increased slightly on 1.1 pp from 0.41% to 1.5% in 2015. ROE increased on 5.7 pp from -3.0% to 2.7% in 2015.
Leverage (Debt)
Debt level is -5.3x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA jumped on 1.1x from -6.4x to -5.3x in 2015. Debt surged on 133% in 2015 while cash jumped on 15.6% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Wuyi International Pharmaceutical Co 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 (41 companies) | | 15.7% | 13.7% | 16.3% | 4.0% |
|---|
| Wuyi International Pharmaceutical Co Ltd ($1889) | | -7.2% | 0.8% | 3.2% | 1.1% |
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 (40 companies) | 38.7% | 39.4% | 38.3% | 50.0% | 50.0% |
|---|
| Wuyi International Pharmaceutical Co Ltd ($1889) | 35.8% | 34.0% | 26.8% | 21.5% | 21.5% |
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 (41 companies) | 17.0% | 19.6% | 20.2% | 21.4% | 21.0% |
|---|
| Wuyi International Pharmaceutical Co Ltd ($1889) | 20.5% | 15.5% | 13.8% | 13.2% | 17.5% |
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 (40 companies) | 10.3% | 8.2% | 8.1% | 7.4% | 4.5% |
|---|
| Wuyi International Pharmaceutical Co Ltd ($1889) | 22.9% | 27.3% | 53.2% | 13.1% | 16.6% |
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 (42 companies) | 9.1% | 12.4% | 9.3% | 12.2% | 10.9% |
|---|
| Wuyi International Pharmaceutical Co Ltd ($1889) | 5.1% | 3.2% | 0.7% | 0.4% | 1.5% |
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 (34 companies) | -0.4x | 0.0x | -0.2x | -0.6x | -0.3x |
|---|
| Wuyi International Pharmaceutical Co Ltd ($1889) | -7.0x | -8.9x | -6.8x | -6.4x | -5.3x |
