Shandong Luoxin Pharmaceutical Group Stock Co Ltd reports 23.1% Net Income decline while 14.0% Revenue growth
07/03/2017 • About Shandong Luoxin Pharmaceutical Group Stock Co Ltd (
$8058) • By InTwits
Shandong Luoxin Pharmaceutical Group Stock Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shandong Luoxin Pharmaceutical Group Stock Co Ltd is a fast growth stock: FY2016 revenue growth was 14.0%, 5 year revenue CAGR was 20.4% at FY2016 ROIC 15.6%
- EBITDA Margin is declining: 12.5% in FY2016 vs. 16.6% in FY2015 vs. 23.4% in FY2012
- The company has highly profitable business model: ROIC is at 15.6%
- It operates with high leverage: Net Debt/EBITDA is -1.2x while industry average is -1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,228 | 2,529 | 2,767 | 3,611 | 4,118 | 14.0% |
| Gross Profit | 1,502 | 1,645 | 1,893 | 2,477 | 3,118 | 25.8% |
| SG&A | | 137 | 211 | 363 | 2,774 | 663.4% |
| EBITDA | 522 | 489 | 513 | 598 | 516 | -13.7% |
| Net Income | 440 | 429 | 444 | 493 | 379 | -23.1% |
Balance Sheet
|
|---|
| Cash | 335 | 187 | 161 | 605 | 641 | 5.9% |
| Short Term Debt | 102 | 6 | 29 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 141 | 124 | 235 | 184 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 37.0% | 13.5% | 9.4% | 30.5% | 14.0% | |
| EBITDA growth | 1.0% | -6.3% | 4.9% | 16.5% | -13.7% | |
| Gross Margin | 67.4% | 65.0% | 68.4% | 68.6% | 75.7% | 7.1% |
| EBITDA Margin | 23.4% | 19.3% | 18.6% | 16.6% | 12.5% | -4.0% |
| Net Income Margin | 19.7% | 16.9% | 16.0% | 13.6% | 9.2% | -4.4% |
| SG&A, % of revenue | | 5.4% | 7.6% | 10.1% | 67.4% | 57.3% |
| CAPEX, % of revenue | 6.3% | 4.9% | 8.5% | 5.1% | | -5.1% |
| ROIC | 27.6% | 22.2% | 19.9% | 20.8% | 15.6% | -5.3% |
| ROE | 26.2% | 21.9% | 20.0% | 19.7% | 13.9% | -5.9% |
| Net Debt/EBITDA | -0.4x | -0.4x | -0.3x | -1.0x | -1.2x | -0.2x |
Revenue and profitability
The company's Revenue jumped on 14.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 88.4 pp from -34.6% to 53.8% in FY2016.
Gross Margin increased on 7.1 pp from 68.6% to 75.7% in FY2016. SG&A as a % of Revenue surged on 57.3 pp from 10.1% to 67.4% in FY2016.
Net Income marign decreased on 4.4 pp from 13.6% to 9.2% in FY2016.
Return on investment
The company operates at good ROIC (15.55%) and ROE (13.86%). ROIC decreased on 5.3 pp from 20.8% to 15.6% in FY2016. ROE decreased on 5.9 pp from 19.7% to 13.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash increased on 5.9%.
Appendix 1: Peers in Pharmaceuticals
Below you can find Shandong Luoxin Pharmaceutical Group Stock Co Ltd benchmarking vs. other companies in Pharmaceuticals 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 |
|---|
| 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% | 11.9% | 15.3% | 2.7% | 10.4% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | | 13.5% | 9.4% | 30.5% | 14.0% |
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) | 39.4% | 38.3% | 50.0% | 50.0% | 40.0% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 67.4% | 65.0% | 68.4% | 68.6% | 75.7% |
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% | 26.0% |
| 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) | 19.6% | 20.6% | 21.4% | 21.0% | -2.1% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 23.4% | 19.3% | 18.6% | 16.6% | 12.5% |
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% | |
| 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) | 8.3% | 9.7% | 7.4% | 4.5% | 2.8% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 6.3% | 4.9% | 8.5% | 5.1% | |
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) | 12.2% | 9.3% | 10.0% | 9.1% | -1.0% |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | 27.6% | 22.2% | 19.9% | 20.8% | 15.6% |
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 | -5.1x |
| 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) | -0.4x | -0.4x | -0.7x | -0.4x | -8.4x |
|---|
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | -0.4x | -0.4x | -0.3x | -1.0x | -1.2x |
