Tianjin TEDA Biomedical Engineering Co Ltd reports 76.6% Net Income decline in 2016 and 2.6 pp EBITDA Margin decline from 9.2% to 6.6%
16/03/2017 • About Tianjin TEDA Biomedical Engineering Co Ltd (
$8189) • By InTwits
Tianjin TEDA Biomedical Engineering Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tianjin TEDA Biomedical Engineering Co Ltd is a company in decline: FY2016 revenue growth was -22.4%, 5 years revenue CAGR was -5.3%
- The company has potentially unprofitable business model: ROIC is at 4.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tianjin TEDA Biomedical Engineering Co Ltd ($8189) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 677.6 | 583.1 | 470.3 | 501.6 | 389.3 | -22.4% |
| Gross Profit | 136.3 | 130.6 | 78.7 | 96.7 | 78.8 | -18.5% |
| SG&A | 80.1 | 75.3 | 37.2 | 45.0 | 51.2 | 13.8% |
| EBITDA | 46.9 | 43.1 | 42.9 | 46.2 | 25.8 | -44.2% |
| Net Income | 24.0 | 21.4 | 17.8 | 25.6 | 6.0 | -76.6% |
Balance Sheet
|
|---|
| Cash | 23.3 | 43.1 | 48.4 | 105.6 | 85.7 | -18.8% |
| Short Term Debt | 115.3 | 103.3 | 87.3 | 45.0 | 40.0 | -11.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 10.7 | 8.0 | 22.6 | 7.2 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 32.6% | -13.9% | -19.4% | 6.7% | -22.4% | |
| EBITDA growth | 52.1% | -8.0% | -0.4% | 7.6% | -44.2% | |
| Gross Margin | 20.1% | 22.4% | 16.7% | 19.3% | 20.2% | 1.0% |
| EBITDA Margin | 6.9% | 7.4% | 9.1% | 9.2% | 6.6% | -2.6% |
| Net Income Margin | 3.5% | 3.7% | 3.8% | 5.1% | 1.5% | -3.6% |
| SG&A, % of revenue | 11.8% | 12.9% | 7.9% | 9.0% | 13.2% | 4.2% |
| CAPEX, % of revenue | 1.6% | 1.4% | 4.8% | 1.4% | | -1.4% |
| ROIC | 12.4% | 10.1% | 9.8% | 9.5% | 4.3% | -5.3% |
| ROE | 14.3% | 11.2% | 8.9% | 9.9% | 1.8% | -8.0% |
| Net Debt/EBITDA | 2.0x | 1.4x | 0.9x | -1.3x | -1.8x | -0.5x |
Revenue and profitability
The company's Revenue dropped on 22.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.6 pp from 9.2% to 6.6% in FY2016.
Gross Margin increased slightly on 0.96 pp from 19.3% to 20.2% in FY2016. SG&A as a % of Revenue increased on 4.2 pp from 9.0% to 13.2% in FY2016.
Net Income marign decreased on 3.6 pp from 5.1% to 1.5% in FY2016.
Return on investment
The company operates at low ROIC (4.26%) and ROE (1.85%). ROIC decreased on 5.3 pp from 9.5% to 4.3% in FY2016. ROE decreased on 8.0 pp from 9.9% to 1.8% in FY2016.
Leverage (Debt)
Debt level is -1.8x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from -1.3x to -1.8x in FY2016. Debt dropped on 11.1% while cash dropped on 18.8%.
Appendix 1: Peers in Biotechnology
Below you can find Tianjin TEDA Biomedical Engineering 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% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | | 78.9% | 13.2% | 23.1% | 7.3% |
| Uni-Bio Science Group Ltd ($690) | -25.7% | 46.1% | 23.1% | 20.2% | |
| |
|---|
| Median (8 companies) | 25.6% | 33.2% | 10.3% | 21.6% | 7.3% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | | -13.9% | -19.4% | 6.7% | -22.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 89.9% | 92.2% | 92.2% | 91.4% | 92.5% |
| 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% | |
| |
|---|
| Median (8 companies) | 68.3% | 79.7% | 78.0% | 77.7% | 81.9% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 20.1% | 22.4% | 16.7% | 19.3% | 20.2% |
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% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 33.4% | 29.0% | 31.5% | 29.3% | 29.8% |
| 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% | |
| |
|---|
| Median (8 companies) | 14.4% | 16.0% | 16.0% | 17.0% | 29.8% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 6.9% | 7.4% | 9.1% | 9.2% | 6.6% |
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% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 49.3% | 13.6% | 9.4% | 6.6% | |
| CK Life Sciences International Holdings Inc ($775) | 3.8% | 5.8% | 9.9% | 6.0% | |
| |
|---|
| Median (8 companies) | 29.9% | 12.0% | 9.6% | 6.3% | 31.1% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 1.6% | 1.4% | 4.8% | 1.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Essex Bio-technology Ltd ($1061) | 22.6% | 25.2% | 28.5% | 31.4% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 20.0% | 20.9% | 18.6% | 17.6% | 16.4% |
| 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% |
| CK Life Sciences International Holdings Inc ($775) | 4.2% | 4.1% | 4.3% | 4.8% | |
| |
|---|
| Median (8 companies) | 8.6% | 7.9% | 7.7% | 9.7% | 15.8% |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 12.4% | 10.1% | 9.8% | 9.5% | 4.3% |
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 | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | -0.4x | -2.4x | -2.2x | -1.9x | -2.1x |
| |
|---|
| Median (5 companies) | 1.9x | -0.0x | -0.1x | 1.6x | 0.3x |
|---|
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 2.0x | 1.4x | 0.9x | -1.3x | -1.8x |
