Global Bio-Chem Technology Group Co Ltd revenue dropped on 47.6% in 2015 while EBITDA Margin increased on 3.7 pp from -38.7% to -34.9%
25/04/2016 • About Global Bio-Chem Technology Group Co Ltd (
$809) • By InTwits
Global Bio-Chem Technology Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Global Bio-Chem Technology Group Co Ltd is a company in decline: 2015 revenue growth was -47.6%, 5 years revenue CAGR was -18.5%
- The company operates at negative EBITDA Margin: -34.9%
- Global Bio-Chem Technology Group Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -9.7%0
- Global Bio-Chem Technology Group Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.9%. At the same time it's in pair with industry average of 3.5%.
- CAPEX is quite volatile: 95.0 in 2015, 189 in 2014, 160 in 2013, 2,109 in 2012, 2,060 in 2011
- The company has unprofitable business model: ROIC is at -17.4%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Global Bio-Chem Technology Group Co Ltd ($809) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,299 | 11,908 | 9,687 | 6,399 | 3,352 | -47.6% |
| Gross Profit | 3,355 | 1,532 | -901 | -890 | -259 | -70.9% |
| SG&A | 1,158 | 1,229 | 1,480 | 1,388 | 561 | -59.6% |
| EBITDA | 2,885 | 714 | -4,397 | -2,476 | -1,171 | -52.7% |
| Net Income | 1,310 | -555 | -6,081 | -3,371 | -1,996 | -40.8% |
Balance Sheet
|
|---|
| Cash | 2,110 | 1,238 | 955 | 179 | 1,473 | 724.2% |
| Short Term Debt | 5,789 | 3,404 | 4,999 | 6,008 | 4,592 | -23.6% |
| Long Term Debt | 2,837 | 4,807 | 4,798 | 2,682 | 4,371 | 62.9% |
Cash flow
|
|---|
| Capex | 2,060 | 2,109 | 160 | 189 | 95 | -49.7% |
Ratios
|
|---|
| Revenue growth | 53.5% | -16.7% | -18.7% | -33.9% | -47.6% | |
| EBITDA growth | 105.7% | -75.2% | -715.7% | -43.7% | -52.7% | |
| Gross Margin | 23.5% | 12.9% | -9.3% | -13.9% | -7.7% | 6.2% |
| EBITDA Margin | 20.2% | 6.0% | -45.4% | -38.7% | -34.9% | 3.7% |
| Net Income Margin | 9.2% | -4.7% | -62.8% | -52.7% | -59.5% | -6.9% |
| SG&A, % of revenue | 8.1% | 10.3% | 15.3% | 21.7% | 16.7% | -5.0% |
| CAPEX, % of revenue | 14.4% | 17.7% | 1.7% | 3.0% | 2.8% | -0.1% |
| ROIC | 11.5% | 0.2% | -29.6% | -23.7% | -17.4% | 6.3% |
| ROE | 13.9% | -5.6% | -87.4% | -132.9% | | 132.9% |
| Net Debt/EBITDA | 2.3x | 9.8x | | | | 0.0x |
Revenue and profitability
Global Bio-Chem Technology Group Co Ltd's Revenue dropped on 47.6% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.7 pp from -38.7% to -34.9% in 2015.
Gross Margin increased on 6.2 pp from -13.9% to -7.7% in 2015. SG&A as a % of Revenue decreased on 5.0 pp from 21.7% to 16.7% in 2015.
Net Income marign decreased on 6.9 pp from -52.7% to -59.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Global Bio-Chem Technology Group Co Ltd had CAPEX/Revenue of 2.8%. CAPEX/Revenue dropped on 14.9 pp from 17.7% in 2012 to 2.8% in 2015. Average CAPEX/Revenue for the last three years was 2.5%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt increased on 3.1% in 2015 while cash jumped on 724% in 2015.
Appendix 1: Peers in Biotechnology
Below we provide Global Bio-Chem Technology Group Co Ltd benchmarking against other companies in Biotechnology 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 Regenerative Medicine International Ltd ($8158) | | -95.1% | 975.8% | -63.0% | 452.4% |
| Bloomage BioTechnology Corp Ltd ($963) | | 33.4% | 36.4% | 28.3% | 35.2% |
| Essex Bio-technology Ltd ($1061) | | 25.6% | 29.9% | 49.3% | 26.2% |
| 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 (7 companies) | -48.2% | 27.5% | 33.2% | 10.3% | 23.1% |
|---|
| Global Bio-Chem Technology Group Co Ltd ($809) | | -16.7% | -18.7% | -33.9% | -47.6% |
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% |
| Essex Bio-technology Ltd ($1061) | 90.5% | 91.2% | 89.6% | 79.3% | 81.0% |
| Amgen Inc ($4332) | 84.4% | 81.5% | 82.1% | 78.0% | 80.5% |
| Bloomage BioTechnology Corp Ltd ($963) | 73.2% | 69.3% | 79.9% | 78.0% | 74.9% |
| China Regenerative Medicine International Ltd ($8158) | 64.4% | 33.6% | -17.3% | 31.0% | 49.2% |
| |
|---|
| Median (7 companies) | 68.8% | 68.3% | 79.7% | 78.0% | 74.9% |
|---|
| Global Bio-Chem Technology Group Co Ltd ($809) | 23.5% | 12.9% | -9.3% | -13.9% | -7.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amgen Inc ($4332) | 34.5% | 38.6% | 38.3% | 41.3% | 48.8% |
| Bloomage BioTechnology Corp Ltd ($963) | 56.2% | 46.8% | 39.2% | 45.2% | 44.1% |
| 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 (7 companies) | 13.6% | 14.4% | 16.0% | 16.0% | 22.6% |
|---|
| Global Bio-Chem Technology Group Co Ltd ($809) | 20.2% | 6.0% | -45.4% | -38.7% | -34.9% |
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% |
| Bloomage BioTechnology Corp Ltd ($963) | 7.0% | 35.8% | 30.4% | 24.6% | 41.0% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 24.6% | 49.3% | 13.6% | 9.4% | 6.6% |
| CK Life Sciences International Holdings Inc ($775) | 5.4% | 3.8% | 5.8% | 9.9% | 6.0% |
| Amgen Inc ($4332) | 3.6% | 4.0% | 3.7% | 3.6% | 2.7% |
| |
|---|
| Median (7 companies) | 6.2% | 29.9% | 12.0% | 9.6% | 6.0% |
|---|
| Global Bio-Chem Technology Group Co Ltd ($809) | 14.4% | 17.7% | 1.7% | 3.0% | 2.8% |
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% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 15.7% | 20.0% | 20.9% | 18.6% | 17.6% |
| Bloomage BioTechnology Corp Ltd ($963) | 33.7% | 30.1% | 24.1% | 27.2% | 17.1% |
| Amgen Inc ($4332) | 11.1% | 13.0% | 11.7% | 11.2% | 14.6% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 7.5% | 12.4% | 10.1% | 9.8% | 9.5% |
| |
|---|
| Median (7 companies) | 9.3% | 12.7% | 10.9% | 10.5% | 14.6% |
|---|
| Global Bio-Chem Technology Group Co Ltd ($809) | 11.5% | 0.2% | -29.6% | -23.7% | -17.4% |
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 |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 2.0x | 2.0x | 1.4x | 0.9x | -1.3x |
| |
|---|
| Median (6 companies) | 0.7x | 1.1x | 0.7x | 0.4x | 0.7x |
|---|
