Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd reports 9.1% EBITDA growth in 2016 and almost no change in EBITDA Margin of 29.8%
16/03/2017 • About Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd (
$1349) • By InTwits
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd is a fast growth stock: FY2016 revenue growth was 7.3%, 5 year revenue CAGR was 36.0% at FY2016 ROIC 16.4%
- The company has highly profitable business model: ROIC is at 16.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 232.5 | 415.9 | 470.9 | 579.5 | 621.9 | 7.3% |
| Gross Profit | 209.0 | 383.5 | 434.1 | 529.4 | 575.4 | 8.7% |
| SG&A | 143.4 | 252.8 | 280.7 | 337.9 | 386.3 | 14.3% |
| EBITDA | 77.6 | 120.5 | 148.2 | 170.0 | 185.5 | 9.1% |
| Net Income | 53.2 | 87.2 | 118.3 | 127.7 | 138.7 | 8.6% |
Balance Sheet
|
|---|
| Cash | 158.3 | 324.9 | 356.1 | 446.0 | 511.3 | 14.6% |
| Short Term Debt | 86.5 | 15.0 | 25.0 | 125.0 | 120.0 | -4.0% |
| Long Term Debt | 40.0 | 25.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 114.6 | 56.7 | 44.1 | 38.3 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 73.7% | 78.9% | 13.2% | 23.1% | 7.3% | |
| EBITDA growth | 63.4% | 55.3% | 23.0% | 14.7% | 9.1% | |
| Gross Margin | 89.9% | 92.2% | 92.2% | 91.4% | 92.5% | 1.2% |
| EBITDA Margin | 33.4% | 29.0% | 31.5% | 29.3% | 29.8% | 0.5% |
| Net Income Margin | 22.9% | 21.0% | 25.1% | 22.0% | 22.3% | 0.3% |
| SG&A, % of revenue | 61.7% | 60.8% | 59.6% | 58.3% | 62.1% | 3.8% |
| CAPEX, % of revenue | 49.3% | 13.6% | 9.4% | 6.6% | | -6.6% |
| ROIC | 20.0% | 20.9% | 18.6% | 17.6% | 16.4% | -1.2% |
| ROE | 27.0% | 23.1% | 20.0% | 18.5% | 17.6% | -0.9% |
| Net Debt/EBITDA | -0.4x | -2.4x | -2.2x | -1.9x | -2.1x | -0.2x |
Revenue and profitability
The company's Revenue increased on 7.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from -6.0% to -3.5% in FY2016.
Gross Margin increased slightly on 1.2 pp from 91.4% to 92.5% in FY2016. SG&A as a % of Revenue increased on 3.8 pp from 58.3% to 62.1% in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at good ROIC (16.37%) and ROE (17.60%). ROIC decreased slightly on 1.2 pp from 17.6% to 16.4% in FY2016. ROE decreased slightly on 0.86 pp from 18.5% to 17.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.2x from -1.9x to -2.1x in FY2016. Debt decreased on 4% while cash surged on 14.6%.
Appendix 1: Peers in Biotechnology
Below you can find Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co 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 |
|---|
| China Regenerative Medicine International Ltd ($8158) | | 975.8% | -63.0% | 452.4% | 885.1% |
| 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% | |
| Uni-Bio Science Group Ltd ($690) | -25.7% | 46.1% | 23.1% | 20.2% | |
| Amgen Inc ($4332) | | 8.2% | 7.4% | 8.0% | 6.1% |
| |
|---|
| Median (8 companies) | 25.6% | 19.6% | 3.5% | 14.1% | 6.1% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | | 78.9% | 13.2% | 23.1% | 7.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 81.9% |
| Bloomage BioTechnology Corp Ltd ($963) | 69.3% | 79.9% | 78.0% | 74.9% | |
| China Regenerative Medicine International Ltd ($8158) | 33.6% | -17.3% | 31.0% | 49.2% | 66.1% |
| |
|---|
| Median (8 companies) | 50.7% | 57.3% | 56.5% | 62.0% | 66.1% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 89.9% | 92.2% | 92.2% | 91.4% | 92.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amgen Inc ($4332) | 38.6% | 38.3% | 41.3% | 48.8% | 51.8% |
| Bloomage BioTechnology Corp Ltd ($963) | 46.8% | 39.2% | 45.2% | 44.1% | |
| 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% | |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 6.9% | 7.4% | 9.1% | 9.2% | 6.6% |
| |
|---|
| Median (8 companies) | 8.4% | 8.7% | 9.9% | 10.3% | 6.6% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 33.4% | 29.0% | 31.5% | 29.3% | 29.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Regenerative Medicine International Ltd ($8158) | 40,271.9% | 810.7% | 3,305.9% | 1,295.1% | 58.9% |
| 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% | |
| 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% | 7.3% | 4.4% | 31.1% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 49.3% | 13.6% | 9.4% | 6.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Essex Bio-technology Ltd ($1061) | 22.6% | 25.2% | 28.5% | 31.4% | |
| Bloomage BioTechnology Corp Ltd ($963) | 30.1% | 24.1% | 27.2% | 17.1% | |
| Amgen Inc ($4332) | 13.0% | 11.7% | 11.2% | 14.6% | 15.8% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 12.4% | 10.1% | 9.8% | 9.5% | 4.3% |
| CK Life Sciences International Holdings Inc ($775) | 4.2% | 4.1% | 4.3% | 4.8% | |
| |
|---|
| Median (8 companies) | 8.3% | 7.1% | 7.0% | 7.2% | 4.3% |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 20.0% | 20.9% | 18.6% | 17.6% | 16.4% |
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 | 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 | -1.8x |
| |
|---|
| Median (5 companies) | 2.7x | 1.4x | 0.9x | 1.6x | 0.4x |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | -0.4x | -2.4x | -2.2x | -1.9x | -2.1x |
