Tianda Pharmaceuticals Ltd revenue jumped on 38.3% and EBITDA Margin jumped on 24.8 pp from -7.3% to 17.5%
24/06/2016 • About Tianda Pharmaceuticals Ltd (
$455) • By InTwits
Tianda Pharmaceuticals Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tianda Pharmaceuticals Ltd doesn't have a profitable business model yet: FY2016 ROIC is 1.1%
- EBITDA Margin is quite volatile: 17.5% in FY2016, -7.3% in FY2015, 33.2% in FY2014, 42.0% in FY2013, 77.7% in FY2012
- Tianda Pharmaceuticals Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.5%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 44.1 in FY2016, 34.0 in FY2015, 26.0 in FY2014, 7.0 in FY2013, 5.8 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tianda Pharmaceuticals Ltd ($455) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 97.3 | 180.2 | 247.2 | 139.4 | 192.8 | 38.3% |
| Gross Profit | 72.5 | 124.0 | 158.5 | 69.8 | 110.7 | 58.7% |
| SG&A | | 68.2 | 99.1 | 103.1 | 101.2 | -1.8% |
| EBITDA | 75.6 | 75.7 | 82.1 | -10.2 | 33.7 | |
| Net Income | 43.1 | 37.7 | 22.0 | -17.9 | 6.6 | |
Balance Sheet
|
|---|
| Cash | 412.1 | 426.1 | 427.3 | 384.2 | 394.3 | 2.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 5.8 | 7.0 | 26.0 | 34.0 | 44.1 | 29.7% |
Ratios
|
|---|
| Revenue growth | -6.2% | 85.3% | 37.2% | -43.6% | 38.3% | |
| EBITDA growth | 9.0% | 0.1% | 8.5% | -112.4% | -430.8% | |
| Gross Margin | 74.5% | 68.8% | 64.1% | 50.1% | 57.4% | 7.4% |
| EBITDA Margin | 77.7% | 42.0% | 33.2% | -7.3% | 17.5% | 24.8% |
| Net Income Margin | 44.3% | 20.9% | 8.9% | -12.9% | 3.4% | 16.3% |
| SG&A, % of revenue | | 37.9% | 40.1% | 73.9% | 52.5% | -21.5% |
| CAPEX, % of revenue | 6.0% | 3.9% | 10.5% | 24.4% | 22.9% | -1.5% |
| ROIC | 5.8% | 6.3% | 7.2% | -3.8% | 1.1% | 4.9% |
| ROE | 6.2% | 5.2% | 3.0% | -2.4% | 0.9% | 3.3% |
| Net Debt/EBITDA | -5.5x | -5.6x | -5.2x | | -11.7x | -11.7x |
Revenue and profitability
The company's Revenue jumped on 38.3%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 24.8 pp from -7.3% to 17.5% in FY2016.
Gross Margin increased on 7.4 pp from 50.1% to 57.4% in FY2016. SG&A as a % of Revenue dropped on 21.5 pp from 73.9% to 52.5% in FY2016.
Net Income marign jumped on 16.3 pp from -12.9% to 3.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 22.9% in FY2016. Tianda Pharmaceuticals Ltd's CAPEX/Revenue surged on 19.0 pp from 3.9% in FY2013 to 22.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 19.3%.Tianda Pharmaceuticals Ltd has spent a lot to CAPEX (131% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (1.08%) and ROE (0.85%). ROIC increased on 4.9 pp from -3.8% to 1.1% in FY2016. ROE increased on 3.3 pp from -2.4% to 0.85% in FY2016.
Leverage (Debt)
The company has no debt. Cash increased on 2.6%.
Appendix 1: Peers in Pharmaceuticals
Below we provide Tianda Pharmaceuticals 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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) | 15.7% | 13.5% | 14.8% | 3.3% | -61.5% |
|---|
| Tianda Pharmaceuticals Ltd ($455) | | 85.3% | 37.2% | -43.6% | 38.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Luye Pharma Group Ltd ($2186) | 83.5% | 83.6% | 81.0% | 81.4% | |
| Consun Pharmaceutical Group Ltd ($1681) | 75.7% | 79.1% | 78.3% | 80.7% | |
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 82.0% | 81.5% | 80.9% | 79.9% | |
| Sino Biopharmaceutical Ltd ($1177) | 78.5% | 77.5% | 76.4% | 77.7% | |
| China Health Group Inc ($8225) | 43.4% | 33.6% | 76.2% | 75.7% | |
| |
|---|
| Median (39 companies) | 39.2% | 37.8% | 49.1% | 49.9% | 24.2% |
|---|
| Tianda Pharmaceuticals Ltd ($455) | 74.5% | 68.8% | 64.1% | 50.1% | 57.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 193.8% | 205,840.0% | -15,344.8% | 49,650.0% | |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 38.8% | 65.4% | 70.9% | 93.3% | |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 60.6% | 21.0% | 28.8% | 61.1% | |
| U-Home Group Holdings Ltd ($2327) | 9.8% | -16.6% | -46.7% | 51.7% | |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 41.3% | 45.4% | 47.5% | 49.1% | |
| |
|---|
| Median (40 companies) | 19.0% | 20.1% | 21.4% | 21.6% | -5.0% |
|---|
| Tianda Pharmaceuticals Ltd ($455) | 77.7% | 42.0% | 33.2% | -7.3% | 17.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hao Wen Holdings Ltd ($8019) | 30.0% | 2.3% | 38.2% | 44.8% | |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 0.9% | 1.4% | 7.6% | 40.5% | |
| Lee's Pharmaceutical Holdings Ltd ($950) | 18.6% | 20.9% | 7.1% | 26.1% | |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 16.8% | 52.4% | 39.6% | 18.7% | |
| Real Nutriceutical Group Ltd ($2010) | 22.9% | 29.5% | 22.6% | 16.9% | |
| |
|---|
| Median (39 companies) | 8.5% | 10.1% | 7.5% | 4.5% | 0.1% |
|---|
| Tianda Pharmaceuticals Ltd ($455) | 6.0% | 3.9% | 10.5% | 24.4% | 22.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Biopharmaceutical Ltd ($1177) | 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) | 13.7% | 18.3% | 22.0% | 25.4% | |
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 12.6% | 14.0% | 17.8% | 23.5% | |
| Lee's Pharmaceutical Holdings Ltd ($950) | 26.1% | 22.0% | 22.4% | 22.7% | |
| |
|---|
| Median (41 companies) | 12.3% | 9.3% | 11.6% | 10.0% | -5.1% |
|---|
| Tianda Pharmaceuticals Ltd ($455) | 5.8% | 6.3% | 7.2% | -3.8% | 1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 2.3x | 3.7x | | 22.2x | |
| U-Home Group Holdings Ltd ($2327) | 10.1x | | | 9.9x | |
| Lansen Pharmaceutical Holdings Ltd ($503) | 1.7x | 2.8x | 3.4x | 4.7x | |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 5.4x | 4.0x | 3.4x | 4.3x | |
| United Laboratories International Holdings Ltd/The ($3933) | 6.5x | 4.6x | 4.2x | 4.0x | |
| |
|---|
| Median (34 companies) | -0.2x | -0.4x | -0.6x | -0.4x | |
|---|
