Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd reports 16.0% Net Income growth and 4.7% Revenue growth
15/03/2017 • About Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd (
$874) • By InTwits
Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.0% in 2016 vs. 7.3% in 2015 vs. 7.0% in 2012
- Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: 228 in 2016, 515 in 2015, 357 in 2014, 350 in 2013, 170 in 2012
- The company has business model with low profitability: ROIC is at 8.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,954 | 17,460 | 18,662 | 18,955 | 19,846 | 4.7% |
| Gross Profit | 3,723 | 5,654 | 6,477 | 6,755 | 6,434 | -4.7% |
| SG&A | 2,742 | 4,363 | 4,867 | 5,152 | 4,850 | -5.9% |
| EBITDA | 837 | 1,101 | 1,380 | 1,385 | 1,388 | 0.2% |
| Net Income | 729 | 980 | 1,194 | 1,300 | 1,508 | 16.0% |
Balance Sheet
|
|---|
| Cash | 1,114 | 1,908 | 3,050 | 3,838 | 12,756 | 232.4% |
| Short Term Debt | 757 | 640 | 917 | 922 | 346 | -62.5% |
| Long Term Debt | 0 | 9 | 0 | 40 | 34 | -15.7% |
Cash flow
|
|---|
| Capex | 170 | 350 | 357 | 515 | 228 | -55.8% |
Ratios
|
|---|
| Revenue growth | 121.6% | 46.1% | 6.9% | 1.6% | 4.7% | |
| EBITDA growth | 223.8% | 31.6% | 25.2% | 0.4% | 0.2% | |
| Gross Margin | 31.1% | 32.4% | 34.7% | 35.6% | 32.4% | -3.2% |
| EBITDA Margin | 7.0% | 6.3% | 7.4% | 7.3% | 7.0% | -0.3% |
| Net Income Margin | 6.1% | 5.6% | 6.4% | 6.9% | 7.6% | 0.7% |
| SG&A, % of revenue | 22.9% | 25.0% | 26.1% | 27.2% | 24.4% | -2.7% |
| CAPEX, % of revenue | 1.4% | 2.0% | 1.9% | 2.7% | 1.1% | -1.6% |
| ROIC | 12.3% | 12.8% | 14.3% | 12.9% | 8.4% | -4.5% |
| ROE | 15.6% | 15.8% | 16.4% | 16.1% | 11.7% | -4.4% |
| Net Debt/EBITDA | -0.4x | -1.1x | -1.5x | -2.1x | -8.9x | -6.8x |
Revenue and profitability
The company's Revenue increased on 4.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 14.3 pp from -14.7% to -0.42% in FY2016.
Gross Margin decreased on 3.2 pp from 35.6% to 32.4% in 2016. SG&A as a % of Revenue decreased on 2.7 pp from 27.2% to 24.4% in 2016.
Net Income marign increased slightly on 0.74 pp from 6.9% to 7.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 1.1%. The company showed small CAPEX/Revenue decline of 0.86 pp from 2.0% in 2013 to 1.1% in 2016. It's average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at low ROIC (8.42%) and ROE (11.69%). ROIC decreased on 4.5 pp from 12.9% to 8.4% in 2016. ROE decreased on 4.4 pp from 16.1% to 11.7% in 2016.
Leverage (Debt)
Debt level is -8.9x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped on 6.8x from -2.1x to -8.9x in 2016. Debt dropped on 60.5% while cash surged on 232%.
Appendix 1: Peers in Pharmaceuticals
Below you can find Guangzhou Baiyunshan Pharmaceutical Holdings 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) | 16.9% | 11.8% | 15.3% | 4.0% | 11.1% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | | 46.1% | 6.9% | 1.6% | 4.7% |
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) | 42.5% | 41.1% | 52.2% | 50.0% | 53.1% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 31.1% | 32.4% | 34.7% | 35.6% | 32.4% |
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% | 50.9% |
| |
|---|
| Median (41 companies) | 20.7% | 20.6% | 21.4% | 21.0% | 10.6% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 7.0% | 6.3% | 7.4% | 7.3% | 7.0% |
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% | 7.6% | 4.6% | 4.0% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 1.4% | 2.0% | 1.9% | 2.7% | 1.1% |
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% |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 25.3% | 27.5% | 23.8% | 25.9% | 25.1% |
| 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% | 2.7% |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | 12.3% | 12.8% | 14.3% | 12.9% | 8.4% |
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 | -2.2x |
|---|
| Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd ($874) | -0.4x | -1.1x | -1.5x | -2.1x | -8.9x |
