Golden Meditech Holdings Ltd revenue dropped on 73.2% and EBITDA Margin decreased on 6.8 pp from -31.7% to -38.5%
28/06/2016 • About Golden Meditech Holdings Ltd (
$801) • By InTwits
Golden Meditech Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Golden Meditech Holdings Ltd is a company in decline: FY2016 revenue growth was -73.2%, 5 years revenue CAGR was -3.0%
- The company operates at negative EBITDA Margin: -38.5%
- EBITDA Margin is quite volatile: -38.5% in FY2016, -31.7% in FY2015, 29.8% in FY2014, 37.9% in FY2013, 41.4% in FY2012
- Golden Meditech Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 34.7%. At the same time it's a lot of higher than industry average of 16.6%.
- CAPEX is quite volatile: 159 in FY2016, 274 in FY2015, 296 in FY2014, 553 in FY2013, 113 in FY2012
- The company has unprofitable business model: ROIC is at -4.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Golden Meditech Holdings Ltd ($801) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 896 | 1,079 | 1,085 | 1,051 | 282 | -73.2% |
| Gross Profit | 619 | 753 | 762 | 765 | 129 | -83.1% |
| SG&A | 395 | 516 | 609 | 637 | 416 | -34.7% |
| EBITDA | 371 | 409 | 323 | -334 | -109 | |
| Net Income | 153 | 136 | -429 | -806 | -687 | |
Balance Sheet
|
|---|
| Cash | 1,747 | 2,101 | 2,712 | 3,959 | 890 | -77.5% |
| Short Term Debt | 706 | 553 | 767 | 204 | 2,701 | 1,222.9% |
| Long Term Debt | 3 | 926 | 78 | 752 | 23 | -96.9% |
Cash flow
|
|---|
| Capex | 113 | 553 | 296 | 274 | 159 | -42.1% |
Ratios
|
|---|
| Revenue growth | 173.1% | 20.4% | 0.6% | -3.1% | -73.2% | |
| EBITDA growth | 165.8% | 10.3% | -21.1% | -203.3% | -67.5% | |
| Gross Margin | 69.1% | 69.8% | 70.2% | 72.8% | 45.8% | -26.9% |
| EBITDA Margin | 41.4% | 37.9% | 29.8% | -31.7% | -38.5% | -6.8% |
| Net Income Margin | 17.1% | 12.6% | -39.5% | -76.7% | -243.8% | -167.2% |
| SG&A, % of revenue | 44.1% | 47.8% | 56.1% | 60.6% | 147.8% | 87.1% |
| CAPEX, % of revenue | 12.7% | 51.2% | 27.3% | 26.1% | 56.4% | 30.3% |
| ROIC | 3.9% | 3.4% | 2.3% | -7.7% | -4.1% | 3.5% |
| ROE | 3.9% | 3.2% | -9.6% | -19.9% | -18.9% | 1.0% |
| Net Debt/EBITDA | -2.8x | -1.5x | -5.8x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 73.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.2 pp from -18.0% to -6.9% in 2016.
Gross Margin dropped on 26.9 pp from 72.8% to 45.8% in FY2016. SG&A as a % of Revenue jumped on 87.1 pp from 60.6% to 148% in FY2016.
Net Income marign dropped on 167 pp from -76.7% to -244% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 56.4% in FY2016. Golden Meditech Holdings Ltd showed CAPEX/Revenue growth of 5.1 pp from 51.2% in FY2013 to 56.4% in FY2016. For the last three years the average CAPEX/Revenue was 36.6%.
Return on investment
The company operates at negative ROIC (-4.11%) and ROE (-18.91%). ROIC increased on 3.5 pp from -7.7% to -4.1% in FY2016. ROE increased slightly on 1.0 pp from -19.9% to -18.9% in FY2016.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt jumped on 185% while cash dropped on 77.5%.
Appendix 1: Peers in Healthcare-Products
Below we provide Golden Meditech Holdings Ltd benchmarking against other companies in Healthcare-Products 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 |
|---|
| Vitop Bioenergy Holdings Ltd ($1178) | -24.7% | -3.2% | -27.3% | 92.4% | |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 22.2% | 12.8% | 21.8% | 32.0% | |
| 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% | |
| |
|---|
| Median (16 companies) | 15.0% | 12.2% | 13.0% | 5.7% | -18.4% |
|---|
| Golden Meditech Holdings Ltd ($801) | | 20.4% | 0.6% | -3.1% | -73.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 80.1% | 81.6% | 81.4% | 81.1% | |
| PW Medtech Group Ltd ($1358) | 66.0% | 67.9% | 72.8% | 75.1% | |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 71.6% | 72.1% | 73.8% | 68.6% | |
| Microport Scientific Corp ($853) | 83.6% | 81.0% | 68.5% | 67.2% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 57.3% | 59.1% | 58.8% | 59.4% | |
| |
|---|
| Median (16 companies) | 50.0% | 50.8% | 48.2% | 47.8% | 21.7% |
|---|
| Golden Meditech Holdings Ltd ($801) | 69.1% | 69.8% | 70.2% | 72.8% | 45.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PW Medtech Group Ltd ($1358) | 44.2% | 30.6% | 41.6% | 48.6% | |
| Lifetech Scientific Corp ($1302) | 31.6% | 24.5% | 23.4% | 33.1% | |
| China Medical System Holdings Ltd ($867) | 34.5% | 32.4% | 39.4% | 32.3% | |
| Hengan International Group Co Ltd ($1044) | 27.4% | 25.3% | 25.3% | 28.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 28.5% | 28.0% | 29.0% | 27.8% | |
| |
|---|
| Median (16 companies) | 22.0% | 22.2% | 12.9% | 11.1% | 7.8% |
|---|
| Golden Meditech Holdings Ltd ($801) | 41.4% | 37.9% | 29.8% | -31.7% | -38.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 0.0% | 16.5% | 0.0% | 70.0% | |
| PW Medtech Group Ltd ($1358) | 14.8% | 22.3% | 30.2% | 42.1% | |
| Arts Optical International Hldgs ($1120) | 14.0% | 4.5% | 14.0% | 29.9% | |
| BBI Life Sciences Corp ($1035) | 23.6% | 6.7% | 6.4% | 20.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 26.0% | 20.2% | 11.7% | 18.3% | |
| |
|---|
| Median (16 companies) | 5.2% | 6.3% | 5.7% | 4.9% | 1.7% |
|---|
| Golden Meditech Holdings Ltd ($801) | 12.7% | 51.2% | 27.3% | 26.1% | 56.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 17.5% | 15.9% | 21.2% | 32.9% | |
| China Medical System Holdings Ltd ($867) | 19.4% | 20.2% | 27.4% | 20.5% | |
| Hengan International Group Co Ltd ($1044) | 19.5% | 14.9% | 14.0% | 16.4% | |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 22.2% | 20.9% | 21.0% | 12.1% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 10.5% | 11.7% | 12.8% | 11.8% | |
| |
|---|
| Median (16 companies) | 10.3% | 8.4% | 5.3% | 6.2% | 1.9% |
|---|
| Golden Meditech Holdings Ltd ($801) | 3.9% | 3.4% | 2.3% | -7.7% | -4.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Microport Scientific Corp ($853) | -1.0x | -2.8x | | 4.3x | |
| Techcomp Holdings Ltd ($1298) | 4.3x | 3.6x | 2.7x | 3.0x | |
| Hengan International Group Co Ltd ($1044) | 1.4x | 1.7x | 1.8x | 1.7x | |
| China Medical System Holdings Ltd ($867) | -0.4x | -0.2x | 0.2x | -0.0x | |
| PW Medtech Group Ltd ($1358) | -1.2x | -7.5x | -0.3x | -1.1x | |
| |
|---|
| Median (12 companies) | -1.0x | -1.5x | -1.5x | -1.4x | 0.9x |
|---|
