Beijing Chunlizhengda Medical Instruments Co Ltd demonstrated healthy growth over the last few years
07/04/2016 • About Beijing Chunlizhengda Medical Instruments Co Ltd (
$1858) • By InTwits
Beijing Chunlizhengda Medical Instruments Co Ltd is an attractive growth stock in Healthcare-Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Beijing Chunlizhengda Medical Instruments Co Ltd showed growth in the last financial year. The company's revenue surged on 32.0% in FY2015. EBITDA also increased: 1.86% for the same period.
If we look for the longer period Beijing Chunlizhengda Medical Instruments Co Ltd showed fast revenue growth of 21.9% from 2012 to 2015 annualy. EBITDA surged on 6.00% from 2012 to 2015 annualy.
Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 79 | 97 | 109 | 133 | 176 |
|---|
| Revenue growth, % | | 22.2% | 12.8% | 21.8% | 32.0% |
|---|
| Gross margin, % | 75.1% | 71.6% | 72.1% | 73.8% | 68.6% |
|---|
| SG&A, % | 30.7% | 33.5% | 37.2% | 41.3% | 46.6% |
|---|
| EBITDA | 35 | 37 | 38 | 43 | 44 |
|---|
| EBITDA growth, % | | 3.9% | 4.6% | 11.8% | 1.9% |
|---|
| EBITDA margin, % | 44.3% | 37.7% | 35.0% | 32.1% | 24.8% |
|---|
| Net Income | 30 | 32 | 33 | 37 | 38 |
|---|
| Net Income margin, % | 38.3% | 32.9% | 29.9% | 27.8% | 21.5% |
|---|
| |
| CAPEX | 43 | 6 | 7 | 12 | 27 |
|---|
| CAPEX/Revenue, % | 53.9% | 6.61% | 6.13% | 8.83% | 15.1% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 45 | 61 | 66 | 64 | 239 |
|---|
| Net Debt/EBITDA | -1.3x | -1.7x | -1.7x | -1.5x | -5.5x |
|---|
| |
| ROIC, % | | 22.2% | 20.9% | 21.0% | 12.1% |
|---|
| ROE, % | | 20.3% | 18.8% | 19.2% | 12.0% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the last 3 years the company showed big decline in EBITDA margin of 12.9 pp from 37.7% in 2012 to 24.8% in 2015.
We call Beijing Chunlizhengda Medical Instruments Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 12.1%. Three years ago it was considerably higher at 22.2%. It's average ROIC for the last three years was 18.0%.
Net Income margin dropped on 6.30 pp from 27.8% to 21.5% in 2015. If we look for the longer period Net Income margin dropped on 11.4 pp from 32.9% in 2012 to 21.5% in 2015.
Beijing Chunlizhengda Medical Instruments Co Ltd operates at ROE of 12.0%. Average ROE for the last three years was 16.7%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.In FY2015 the company had CAPEX/Revenue of 15.1%. The company's CAPEX/Revenue surged on 8.51 pp from 6.61% in 2012 to 15.1% in 2015. Average CAPEX/Revenue for the last three years was 10.0%.
Leverage (Debt)
Beijing Chunlizhengda Medical Instruments Co Ltd has negative net debt at -5.5x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company showed fast leverage growth of 3.81x from -1.68x in 2012 to -5.49x in 2015.
Peers in Healthcare-Products
Below you can find Beijing Chunlizhengda Medical Instruments Co Ltd benchmarking vs. other companies in Healthcare-Products 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Vitop Bioenergy Holdings Ltd ($1178) | | -24.7% | -3.2% | -27.3% | 92.4% |
| China Medical System Holdings Ltd ($867) | | 30.8% | 26.5% | 31.0% | 20.7% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | | 16.0% | 25.1% | 14.4% | 12.1% |
| BBI Life Sciences Corp ($1035) | | 16.4% | 18.0% | 15.1% | 11.5% |
| Lifetech Scientific Corp ($1302) | | 29.3% | 27.3% | 22.4% | 10.2% |
| |
|---|
| Median (16 companies) | | 13.5% | 14.8% | 10.8% | 5.2% |
|---|
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | | 22.2% | 12.8% | 21.8% | 32.0% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lifetech Scientific Corp ($1302) | 80.5% | 80.1% | 81.6% | 81.4% | 81.1% |
| PW Medtech Group Ltd ($1358) | 62.3% | 66.0% | 67.9% | 72.8% | 75.1% |
| Golden Meditech Holdings Ltd ($801) | 57.5% | 69.1% | 69.8% | 70.2% | 72.8% |
| Microport Scientific Corp ($853) | 83.7% | 83.6% | 81.0% | 68.5% | 67.2% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 55.3% | 57.3% | 59.1% | 58.8% | 59.4% |
| |
|---|
| Median (16 companies) | 55.3% | 50.0% | 50.8% | 48.2% | 47.8% |
|---|
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 75.1% | 71.6% | 72.1% | 73.8% | 68.6% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| PW Medtech Group Ltd ($1358) | 42.3% | 44.2% | 30.6% | 41.6% | 48.6% |
| Lifetech Scientific Corp ($1302) | 17.2% | 31.6% | 24.5% | 23.4% | 33.1% |
| China Medical System Holdings Ltd ($867) | 31.6% | 34.5% | 32.4% | 39.4% | 32.3% |
| Hengan International Group Co Ltd ($1044) | 20.8% | 27.4% | 25.3% | 25.3% | 28.0% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 31.3% | 28.5% | 28.0% | 29.0% | 27.8% |
| |
|---|
| Median (16 companies) | 20.8% | 22.0% | 22.2% | 12.9% | 9.4% |
|---|
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 44.3% | 37.7% | 35.0% | 32.1% | 24.8% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lifetech Scientific Corp ($1302) | 10.7% | 0.0% | 16.5% | 0.0% | 70.0% |
| PW Medtech Group Ltd ($1358) | 21.1% | 14.8% | 22.3% | 30.2% | 42.1% |
| Arts Optical International Hldgs ($1120) | 5.6% | 14.0% | 4.5% | 14.0% | 29.9% |
| Golden Meditech Holdings Ltd ($801) | 9.5% | 12.7% | 51.2% | 27.3% | 26.1% |
| BBI Life Sciences Corp ($1035) | 31.1% | 23.6% | 6.7% | 6.4% | 20.0% |
| |
|---|
| Median (16 companies) | 9.5% | 8.2% | 6.6% | 5.7% | 4.9% |
|---|
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 53.9% | 6.6% | 6.1% | 8.8% | 15.1% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lifetech Scientific Corp ($1302) | 13.0% | 17.5% | 15.9% | 21.2% | 32.9% |
| China Medical System Holdings Ltd ($867) | 19.7% | 19.4% | 20.2% | 27.4% | 20.5% |
| Hengan International Group Co Ltd ($1044) | 16.9% | 19.5% | 14.9% | 14.0% | 16.4% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 14.6% | 10.5% | 11.7% | 12.8% | 11.8% |
| PW Medtech Group Ltd ($1358) | 30.9% | 30.7% | 9.2% | 10.0% | 10.7% |
| |
|---|
| Median (16 companies) | 13.0% | 8.5% | 7.4% | 5.0% | 2.5% |
|---|
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | | 22.2% | 20.9% | 21.0% | 12.1% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Microport Scientific Corp ($853) | -3.3x | -1.0x | -2.8x | | 4.3x |
| Techcomp Holdings Ltd ($1298) | 1.7x | 4.3x | 3.6x | 2.7x | 3.0x |
| Hengan International Group Co Ltd ($1044) | 0.9x | 1.4x | 1.7x | 1.8x | 1.7x |
| China Medical System Holdings Ltd ($867) | -0.8x | -0.4x | -0.2x | 0.2x | -0.0x |
| PW Medtech Group Ltd ($1358) | -0.8x | -1.2x | -7.5x | -0.3x | -1.1x |
| |
|---|
| Median (11 companies) | -1.0x | -1.0x | -1.4x | -1.5x | -1.1x |
|---|
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | -1.3x | -1.7x | -1.7x | -1.5x | -5.5x |
