Rui Kang Pharmaceutical Group Investments Ltd Net Income surged on 417% and Revenue jumped on 129%
16/03/2017 • About Rui Kang Pharmaceutical Group Investments Ltd (
$8037) • By InTwits
Rui Kang Pharmaceutical Group Investments Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rui Kang Pharmaceutical Group Investments Ltd is a fast growth stock: FY2016 revenue growth was 129%, 5 year revenue CAGR was 23.2% at FY2016 ROIC 68.8%
- EBITDA Margin is quite volatile: 37.6% in FY2016, 20.4% in FY2015, -37.4% in FY2014, -23.3% in FY2013, 9.5% in FY2012
- The company has highly profitable business model: ROIC is at 68.8%
- It operates with high leverage: Net Debt/EBITDA is -0.7x while industry average is -1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rui Kang Pharmaceutical Group Investments Ltd ($8037) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 124.7 | 99.5 | 74.8 | 162.5 | 372.3 | 129.1% |
| Gross Profit | | | | | 168.9 | |
| SG&A | | | 1.0 | 0.8 | 33.7 | 3,950.5% |
| EBITDA | 11.9 | -23.2 | -28.0 | 33.1 | 140.1 | 323.3% |
| Net Income | 4.8 | -26.6 | -32.2 | 18.4 | 95.1 | 417.4% |
Balance Sheet
|
|---|
| Cash | 22.9 | 20.7 | 37.2 | 125.0 | 102.8 | -17.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 8.0 | 6.5 | 1.4 | 4.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -5.0% | -20.2% | -24.8% | 117.2% | 129.1% | |
| EBITDA growth | -47.0% | -294.8% | 20.6% | -218.4% | 323.3% | |
| Gross Margin | | | | | 45.4% | 45.4% |
| EBITDA Margin | 9.5% | -23.3% | -37.4% | 20.4% | 37.6% | 17.3% |
| Net Income Margin | 3.8% | -26.8% | -43.1% | 11.3% | 25.5% | 14.2% |
| SG&A, % of revenue | | | 1.3% | 0.5% | 9.1% | 8.5% |
| CAPEX, % of revenue | 6.4% | 6.6% | 1.8% | 2.4% | | -2.4% |
| ROIC | 17.7% | -67.7% | -113.8% | 35.6% | 68.8% | 33.2% |
| ROE | 10.2% | -74.5% | -129.5% | 26.0% | 58.9% | 32.9% |
| Net Debt/EBITDA | -1.9x | | | -3.8x | -0.7x | 3.0x |
Revenue and profitability
The company's Revenue surged on 129%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 17.3 pp from 20.4% to 37.6% in FY2016.
SG&A as a % of Revenue increased on 8.5 pp from 0.51% to 9.1% in FY2016.
Net Income marign jumped on 14.2 pp from 11.3% to 25.5% in FY2016.
Return on investment
The company operates at high and attractive ROIC (68.78%) and ROE (58.85%). ROIC surged on 33.2 pp from 35.6% to 68.8% in FY2016. ROE surged on 32.9 pp from 26.0% to 58.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 17.7%.
Appendix 1: Peers in Cosmetics/Personal Care
Below you can find Rui Kang Pharmaceutical Group Investments Ltd benchmarking vs. other companies in Cosmetics/Personal Care 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 |
|---|
| EDS Wellness Holdings Ltd ($8176) | | 1,059.5% | 238.8% | 70.4% | 30.9% |
| Vinda International Holdings Ltd ($3331) | | 12.8% | 17.5% | 21.4% | 24.3% |
| L'Occitane International SA ($973) | | 14.2% | 1.1% | 11.7% | 8.9% |
| Ming Fai International Holdings Ltd ($3828) | 14.3% | -0.1% | -3.4% | 5.2% | |
| Natural Beauty Bio-Technology Ltd ($157) | -18.2% | -9.1% | 15.1% | 0.2% | |
| |
|---|
| Median (8 companies) | -2.0% | 4.4% | 4.4% | 2.7% | 16.6% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | | -20.2% | -24.8% | 117.2% | 129.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| L'Occitane International SA ($973) | 82.7% | 82.0% | 81.1% | 81.8% | 82.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 78.6% | 75.8% | 76.9% | 78.4% | |
| HIN Sang Group International Holding Co Ltd ($6893) | 28.2% | 41.9% | 56.2% | 57.1% | 60.8% |
| China Child Care Corp Ltd ($1259) | 45.9% | 47.3% | 47.5% | 39.3% | |
| BaWang International Group Holding Ltd ($1338) | 41.9% | 48.5% | 37.4% | 38.0% | |
| |
|---|
| Median (8 companies) | 36.4% | 44.6% | 43.7% | 38.7% | 46.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 38.3% | 25.3% | 29.4% | 38.7% | |
| L'Occitane International SA ($973) | 20.7% | 19.3% | 17.4% | 19.6% | 17.8% |
| Vinda International Holdings Ltd ($3331) | 16.1% | 14.2% | 15.3% | 13.7% | 14.3% |
| HIN Sang Group International Holding Co Ltd ($6893) | 8.4% | 9.7% | 24.2% | 12.7% | 14.1% |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 7.4% | 8.6% | 11.5% | |
| |
|---|
| Median (8 companies) | 12.3% | 12.0% | 14.7% | 12.1% | 14.2% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 9.5% | -23.3% | -37.4% | 20.4% | 37.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EDS Wellness Holdings Ltd ($8176) | 387.3% | 119.7% | 14.9% | 34.3% | |
| Vinda International Holdings Ltd ($3331) | 20.5% | 20.2% | 12.9% | 12.4% | 10.9% |
| Natural Beauty Bio-Technology Ltd ($157) | 10.1% | 5.1% | 3.7% | 12.0% | |
| Ming Fai International Holdings Ltd ($3828) | 1.8% | 1.4% | 2.3% | 7.5% | |
| L'Occitane International SA ($973) | 6.2% | 7.6% | 5.8% | 4.3% | 4.0% |
| |
|---|
| Median (8 companies) | 8.1% | 6.4% | 6.8% | 5.9% | 10.9% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 6.4% | 6.6% | 1.8% | 2.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 19.4% | 9.2% | 13.6% | 20.7% | |
| L'Occitane International SA ($973) | 23.2% | 21.4% | 16.9% | 19.6% | 18.5% |
| Ming Fai International Holdings Ltd ($3828) | 7.2% | 4.3% | 5.6% | 12.0% | |
| HIN Sang Group International Holding Co Ltd ($6893) | | 14.3% | 42.1% | 11.0% | 7.6% |
| Vinda International Holdings Ltd ($3331) | 13.8% | 10.4% | 10.0% | 9.0% | 9.8% |
| |
|---|
| Median (8 companies) | 13.8% | 9.8% | 11.7% | 10.0% | 8.7% |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 17.7% | -67.7% | -113.8% | 35.6% | 68.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.4x | 2.1x | 3.1x | 3.3x | 2.3x |
| Ming Fai International Holdings Ltd ($3828) | -1.5x | -2.5x | -2.1x | -1.2x | |
| L'Occitane International SA ($973) | -1.3x | -1.2x | -1.3x | -1.2x | -1.5x |
| Natural Beauty Bio-Technology Ltd ($157) | -2.3x | -4.6x | -3.9x | -2.6x | |
| HIN Sang Group International Holding Co Ltd ($6893) | -0.6x | -0.8x | -1.1x | -9.7x | -7.5x |
| |
|---|
| Median (5 companies) | -1.4x | -1.8x | -1.7x | -1.2x | -1.5x |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -1.9x | | | -3.8x | -0.7x |
