United Gene High-Tech Group Ltd revenue started to decline in FY2016: dropped 41.4% vs. 14.2% growth a year earliner
30/06/2016 • About United Gene High-Tech Group Ltd (
$399) • By InTwits
United Gene High-Tech Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- United Gene High-Tech Group Ltd is a company in decline: FY2016 revenue growth was -41.4%, 5 years revenue CAGR was -26.1%
- The company operates at negative EBITDA Margin: -478.6%
- United Gene High-Tech Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -186.5% for the sames years0
- The company has unprofitable business model: ROIC is at -5.0%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is -0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Gene High-Tech Group Ltd ($399) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 25.475 | 10.050 | 29.744 | 33.976 | 19.908 | -41.4% |
| Gross Profit | 7.046 | -8.009 | | 0.918 | 0.589 | -35.8% |
| SG&A | 46.737 | 51.192 | | 27.890 | 30.259 | 8.5% |
| EBITDA | -27.622 | -57.836 | | -41.477 | -95.285 | |
| Net Income | -123.882 | -72.839 | -550.347 | -451.684 | -236.865 | |
Balance Sheet
|
|---|
| Cash | 169.815 | 355.253 | | 191.191 | 32.459 | -83.0% |
| Short Term Debt | 4.907 | 6.910 | | 0.000 | 0.000 | |
| Long Term Debt | 6.133 | 14.963 | | 354.957 | 407.792 | 14.9% |
Cash flow
|
|---|
| Capex | 27.913 | 5.283 | | 0.000 | 0.300 | |
Ratios
|
|---|
| Revenue growth | -71.8% | -60.5% | 196.0% | 14.2% | -41.4% | |
| EBITDA growth | -426.2% | 109.4% | | | 129.7% | |
| Gross Margin | 27.7% | -79.7% | | 2.7% | 3.0% | 0.3% |
| EBITDA Margin | -108.4% | -575.5% | 0.0% | -122.1% | -478.6% | -356.5% |
| Net Income Margin | -486.3% | -724.8% | -1,850.3% | -1,329.4% | -1,189.8% | 139.6% |
| SG&A, % of revenue | 183.5% | 509.4% | | 82.1% | 152.0% | 69.9% |
| CAPEX, % of revenue | 109.6% | 52.6% | | 0.0% | 1.5% | 1.5% |
| ROIC | -8.6% | -17.2% | | | -5.0% | -5.0% |
| ROE | -32.8% | -18.9% | | | -36.0% | -36.0% |
Revenue and profitability
The company's Revenue dropped on 41.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 357 pp from -122% to -479% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue surged on 69.9 pp from 82.1% to 152% in FY2016.
Net Income marign jumped on 140 pp from -1,329% to -1,190% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 United Gene High-Tech Group Ltd had CAPEX/Revenue of 1.5%. CAPEX/Revenue dropped on 51.1 pp from 52.6% in FY2013 to 1.5% in FY2016.
Return on investment
The company operates at negative ROIC (-5.01%) and ROE (-35.96%).
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged on 14.9% while cash dropped on 83.0%.
Appendix 1: Peers in Pharmaceuticals
Below we provide United Gene High-Tech Group 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) | | 45.9% | -10.5% | 105.6% | 40.9% |
| 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% | |
| RM Group Holdings Ltd ($8185) | | 4.6% | -16.0% | 34.2% | -16.6% |
| |
|---|
| Median (41 companies) | 19.0% | 13.5% | 14.7% | 2.7% | 10.4% |
|---|
| United Gene High-Tech Group Ltd ($399) | | -60.5% | 196.0% | 14.2% | -41.4% |
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% | |
| RM Group Holdings Ltd ($8185) | 79.6% | 78.8% | 76.6% | 77.7% | 77.4% |
| Sino Biopharmaceutical Ltd ($1177) | 78.5% | 77.5% | 76.4% | 77.7% | |
| |
|---|
| Median (40 companies) | 42.5% | 41.1% | 50.9% | 50.0% | 53.1% |
|---|
| United Gene High-Tech Group Ltd ($399) | 27.7% | -79.7% | | 2.7% | 3.0% |
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 (41 companies) | 20.7% | 20.6% | 21.4% | 21.0% | -2.1% |
|---|
| United Gene High-Tech Group Ltd ($399) | -108.4% | -575.5% | | -122.1% | -478.6% |
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% | |
| Tianda Pharmaceuticals Ltd ($455) | 6.0% | 3.9% | 10.5% | 24.4% | 22.9% |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 16.8% | 52.4% | 39.6% | 18.7% | |
| |
|---|
| Median (40 companies) | 8.2% | 8.1% | 7.5% | 4.6% | 2.2% |
|---|
| United Gene High-Tech Group Ltd ($399) | 109.6% | 52.6% | | 0.0% | 1.5% |
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 (42 companies) | 12.3% | 9.3% | 10.6% | 10.0% | -1.0% |
|---|
| United Gene High-Tech Group Ltd ($399) | -8.6% | -17.2% | | | -5.0% |
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 (35 companies) | -0.4x | -0.4x | -0.6x | -0.4x | -11.7x |
|---|
