China Regenerative Medicine International Ltd revenue growth accelerated from 452% in FY2015 to 885% in FY2016
15/07/2016 • About China Regenerative Medicine International Ltd (
$8158) • By InTwits
China Regenerative Medicine International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Regenerative Medicine International Ltd doesn't have a profitable business model yet: FY2016 ROIC is -11.0%
- The company operates at negative EBITDA Margin: -755.6%
- China Regenerative Medicine International Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -1,626.0% for the sames years0
- China Regenerative Medicine International Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 9,148.5%. At the same time it's a lot of higher than industry average of 15.2%.
- CAPEX is quite volatile: 16.3 in FY2016, 36.5 in FY2015, 16.9 in FY2014, 11.2 in FY2013, 51.5 in FY2012
- The company has unprofitable business model: ROIC is at -11.0%
- It operates with high leverage: Net Debt/EBITDA is 7.0x 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.
China Regenerative Medicine International Ltd ($8158) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 0.128 | 1.377 | 0.510 | 2.817 | 27.751 | 885.1% |
| Gross Profit | 0.043 | -0.238 | 0.158 | 1.386 | 18.341 | 1,223.3% |
| SG&A | | | 136.879 | 171.125 | 303.249 | 77.2% |
| EBITDA | -51.868 | -47.415 | -100.490 | -120.339 | -209.678 | |
| Net Income | -57.109 | -61.320 | -263.442 | -250.098 | -190.902 | |
Balance Sheet
|
|---|
| Cash | 39.700 | 272.327 | 119.018 | 1,008.984 | 1,300.825 | 28.9% |
| Short Term Debt | 44.939 | 41.779 | 37.881 | 59.032 | 542.553 | 819.1% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 51.548 | 11.164 | 16.860 | 36.484 | 16.348 | -55.2% |
Ratios
|
|---|
| Revenue growth | -95.1% | 975.8% | -63.0% | 452.4% | 885.1% | |
| EBITDA growth | 50.1% | -8.6% | 111.9% | 19.8% | 74.2% | |
| Gross Margin | 33.6% | -17.3% | 31.0% | 49.2% | 66.1% | 16.9% |
| EBITDA Margin | -40,521.9% | -3,443.4% | -19,703.9% | -4,271.9% | -755.6% | 3,516.3% |
| Net Income Margin | -44,616.4% | -4,453.2% | -51,655.3% | -8,878.2% | -687.9% | 8,190.3% |
| SG&A, % of revenue | | | 26,839.0% | 6,074.7% | 1,092.7% | -4,982.0% |
| CAPEX, % of revenue | 40,271.9% | 810.7% | 3,305.9% | 1,295.1% | 58.9% | -1,236.2% |
| ROIC | -16.0% | -11.9% | -16.4% | -11.7% | -11.0% | 0.7% |
| ROE | -15.6% | -12.8% | -37.6% | -19.4% | -9.9% | 9.5% |
Revenue and profitability
China Regenerative Medicine International Ltd's Revenue jumped on 885%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 3,516 pp from -4,272% to -756% in FY2016.
Gross Margin jumped on 16.9 pp from 49.2% to 66.1% in FY2016. SG&A as a % of Revenue dropped on 4,982 pp from 6,075% to 1,093% in FY2016.
Net Income marign surged on 8,190 pp from -8,878% to -688% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 58.9%. China Regenerative Medicine International Ltd showed big decline in CAPEX/Revenue of 752 pp from 811% in FY2013 to 58.9% in FY2016. It's average CAPEX/Revenue for the last three years was 1,553%.
Return on investment
The company operates at negative ROIC (-11.01%) and ROE (-9.87%). ROIC increased slightly on 0.67 pp from -11.7% to -11.0% in FY2016. ROE increased on 9.5 pp from -19.4% to -9.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged on 819% while cash surged on 28.9%.
Appendix 1: Peers in Biotechnology
Below you can find China Regenerative Medicine International Ltd benchmarking vs. other companies in Biotechnology 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Uni-Bio Science Group Ltd ($690) | -25.7% | 46.1% | 23.1% | 20.2% | |
| Amgen Inc ($4332) | 10.8% | 8.2% | 7.4% | 8.0% | |
| |
|---|
| Median (8 companies) | 27.5% | 19.6% | 10.3% | 14.1% | |
|---|
| China Regenerative Medicine International Ltd ($8158) | | 975.8% | -63.0% | 452.4% | 885.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 89.9% | 92.2% | 92.2% | 91.4% | |
| Uni-Bio Science Group Ltd ($690) | 67.2% | 79.5% | 80.0% | 83.3% | |
| Essex Bio-technology Ltd ($1061) | 91.2% | 89.6% | 79.3% | 81.0% | |
| Amgen Inc ($4332) | 81.5% | 82.1% | 78.0% | 80.5% | |
| Bloomage BioTechnology Corp Ltd ($963) | 69.3% | 79.9% | 78.0% | 74.9% | |
| |
|---|
| Median (8 companies) | 68.3% | 79.7% | 78.0% | 77.7% | |
|---|
| China Regenerative Medicine International Ltd ($8158) | 33.6% | -17.3% | 31.0% | 49.2% | 66.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amgen Inc ($4332) | 38.6% | 38.3% | 41.3% | 48.8% | |
| Bloomage BioTechnology Corp Ltd ($963) | 46.8% | 39.2% | 45.2% | 44.1% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 33.4% | 29.0% | 31.5% | 29.3% | |
| Essex Bio-technology Ltd ($1061) | 19.0% | 21.9% | 21.3% | 22.6% | |
| CK Life Sciences International Holdings Inc ($775) | 9.9% | 10.0% | 10.7% | 11.3% | |
| |
|---|
| Median (8 companies) | 14.4% | 16.0% | 16.0% | 17.0% | |
|---|
| China Regenerative Medicine International Ltd ($8158) | -40,521.9% | -3,443.4% | -19,703.9% | -4,271.9% | -755.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 35.8% | 30.4% | 24.6% | 41.0% | |
| Uni-Bio Science Group Ltd ($690) | 23.9% | 28.9% | 35.5% | 15.3% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 49.3% | 13.6% | 9.4% | 6.6% | |
| CK Life Sciences International Holdings Inc ($775) | 3.8% | 5.8% | 9.9% | 6.0% | |
| Global Bio-Chem Technology Group Co Ltd ($809) | 17.7% | 1.7% | 3.0% | 2.8% | |
| |
|---|
| Median (8 companies) | 20.8% | 8.1% | 7.1% | 4.4% | |
|---|
| China Regenerative Medicine International Ltd ($8158) | 40,271.9% | 810.7% | 3,305.9% | 1,295.1% | 58.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Essex Bio-technology Ltd ($1061) | 22.6% | 25.2% | 28.5% | 31.4% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 20.0% | 20.9% | 18.6% | 17.6% | |
| Bloomage BioTechnology Corp Ltd ($963) | 30.1% | 24.1% | 27.2% | 17.1% | |
| Amgen Inc ($4332) | 13.0% | 11.7% | 11.2% | 14.6% | |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 12.4% | 10.1% | 9.8% | 9.5% | |
| |
|---|
| Median (8 companies) | 12.7% | 10.9% | 10.5% | 12.1% | |
|---|
| China Regenerative Medicine International Ltd ($8158) | -16.0% | -11.9% | -16.4% | -11.7% | -11.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CK Life Sciences International Holdings Inc ($775) | 4.3x | 6.1x | 6.4x | 6.0x | |
| Amgen Inc ($4332) | 3.5x | 4.0x | 3.3x | 2.6x | |
| Bloomage BioTechnology Corp Ltd ($963) | -0.5x | -0.3x | -0.5x | 1.6x | |
| Essex Bio-technology Ltd ($1061) | 0.3x | -0.0x | -0.1x | -0.1x | |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 2.0x | 1.4x | 0.9x | -1.3x | |
| |
|---|
| Median (6 companies) | 2.0x | 0.7x | 0.4x | 0.7x | |
|---|
