Beijing Tong Ren Tang Chinese Medicine Co Ltd reports 18.6% Net Income growth in 2016 and 1.8 pp EBITDA Margin growth from 49.1% to 50.9%
14/03/2017 • About Beijing Tong Ren Tang Chinese Medicine Co Ltd (
$8138) • By InTwits
Beijing Tong Ren Tang Chinese Medicine Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beijing Tong Ren Tang Chinese Medicine Co Ltd is a fast growth stock: FY2016 revenue growth was 11.7%, 5 year revenue CAGR was 40.7% at FY2016 ROIC 25.1%
- EBITDA Margin is expanding: 50.9% in FY2016 vs. 49.1% in FY2015 vs. 41.3% in FY2012
- The company has highly profitable business model: ROIC is at 25.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 333 | 614 | 761 | 970 | 1,084 | 11.7% |
| Gross Profit | 236 | 420 | 543 | 681 | 795 | 16.8% |
| SG&A | 36 | 66 | 78 | 232 | 272 | 17.0% |
| EBITDA | 138 | 279 | 362 | 476 | 552 | 15.9% |
| Net Income | 156 | 220 | 287 | 354 | 420 | 18.6% |
Balance Sheet
|
|---|
| Cash | 228 | 454 | 563 | 760 | 798 | 5.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 1 | 1 | -0.9% |
Cash flow
|
|---|
| Capex | 58 | 123 | 69 | 26 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 69.3% | 84.4% | 24.0% | 27.5% | 11.7% | |
| EBITDA growth | 135.5% | 102.8% | 29.6% | 31.7% | 15.9% | |
| Gross Margin | 70.9% | 68.4% | 71.4% | 70.2% | 73.3% | 3.2% |
| EBITDA Margin | 41.3% | 45.4% | 47.5% | 49.1% | 50.9% | 1.8% |
| Net Income Margin | 46.8% | 35.8% | 37.7% | 36.5% | 38.8% | 2.3% |
| SG&A, % of revenue | 10.7% | 10.7% | 10.3% | 23.9% | 25.0% | 1.1% |
| CAPEX, % of revenue | 17.4% | 20.1% | 9.1% | 2.7% | | -2.7% |
| ROIC | 25.3% | 27.5% | 23.8% | 25.9% | 25.1% | -0.8% |
| ROE | 37.3% | 24.9% | 20.8% | 21.5% | 21.3% | -0.1% |
| Net Debt/EBITDA | -1.7x | -1.6x | -1.6x | -1.6x | -1.4x | 0.2x |
Revenue and profitability
Beijing Tong Ren Tang Chinese Medicine Co Ltd's Revenue surged on 11.7%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.8 pp from 49.1% to 50.9% in FY2016.
Gross Margin increased on 3.2 pp from 70.2% to 73.3% in FY2016. SG&A as a % of Revenue increased slightly on 1.1 pp from 23.9% to 25.0% in FY2016.
Net Income marign increased on 2.3 pp from 36.5% to 38.8% in FY2016.
Return on investment
The company operates at high and attractive ROIC (25.14%) and ROE (21.35%). ROIC decreased slightly on 0.78 pp from 25.9% to 25.1% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is -1.4x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from -1.6x to -1.4x in FY2016. Debt decreased slightly on 0.89% while cash increased on 5.0%.
Appendix 1: Peers in Pharmaceuticals
Below we provide Beijing Tong Ren Tang Chinese Medicine Co 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) | 17.6% | 11.8% | 14.7% | 2.7% | 10.8% |
|---|
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | | 84.4% | 24.0% | 27.5% | 11.7% |
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% | 79.2% |
| |
|---|
| Median (40 companies) | 39.4% | 38.3% | 50.0% | 50.0% | 48.7% |
|---|
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 70.9% | 68.4% | 71.4% | 70.2% | 73.3% |
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% | |
| Pak Fah Yeow International Ltd ($239) | 33.9% | 28.4% | 52.4% | 44.3% | |
| |
|---|
| Median (41 companies) | 19.6% | 20.2% | 21.4% | 19.0% | 10.1% |
|---|
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 41.3% | 45.4% | 47.5% | 49.1% | 50.9% |
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% | 7.4% | 4.6% | 4.0% |
|---|
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 17.4% | 20.1% | 9.1% | 2.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Biopharmaceutical Ltd ($1177) | 26.2% | 26.8% | 26.5% | 26.2% | 24.3% |
| 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% | |
| RM Group Holdings Ltd ($8185) | | 84.9% | -1.4% | 22.1% | 7.9% |
| |
|---|
| Median (42 companies) | 12.2% | 9.3% | 10.0% | 9.1% | 2.5% |
|---|
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 25.3% | 27.5% | 23.8% | 25.9% | 25.1% |
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 | -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 | -0.3x | -0.6x | -0.4x | -2.9x |
|---|
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | -1.7x | -1.6x | -1.6x | -1.6x | -1.4x |
