CK Life Sciences International Holdings Inc Net Income dropped on 11.6% in 2016 and EBITDA Margin showed almost no change
21/03/2017 • About CK Life Sciences International Holdings Inc (
$775) • By InTwits
CK Life Sciences International Holdings Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 11.2% in FY2016 vs. 11.3% in FY2015 vs. 9.9% in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.7%
- It operates with high leverage: Net Debt/EBITDA is 5.8x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CK Life Sciences International Holdings Inc ($775) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,545 | 4,971 | 4,954 | 4,919 | 4,869 | -1.0% |
| Gross Profit | 1,553 | 1,742 | 1,740 | 1,742 | 1,661 | -4.6% |
| EBITDA | 448 | 498 | 528 | 557 | 546 | -2.0% |
| Net Income | 176 | 229 | 264 | 285 | 252 | -11.6% |
Balance Sheet
|
|---|
| Cash | 572 | 768 | 979 | 841 | 859 | 2.2% |
| Short Term Debt | 125 | 1,027 | 129 | 1,432 | 3,102 | 116.6% |
| Long Term Debt | 2,357 | 2,761 | 4,229 | 2,760 | 925 | -66.5% |
Cash flow
|
|---|
| Capex | 173 | 286 | 490 | 297 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 29.4% | 9.4% | -0.3% | -0.7% | -1.0% | |
| EBITDA growth | 37.7% | 11.0% | 6.2% | 5.4% | -2.0% | |
| Gross Margin | 34.2% | 35.0% | 35.1% | 35.4% | 34.1% | -1.3% |
| EBITDA Margin | 9.9% | 10.0% | 10.7% | 11.3% | 11.2% | -0.1% |
| Net Income Margin | 3.9% | 4.6% | 5.3% | 5.8% | 5.2% | -0.6% |
| CAPEX, % of revenue | 3.8% | 5.8% | 9.9% | 6.0% | | -6.0% |
| ROIC | 4.2% | 4.1% | 4.3% | 4.8% | 4.7% | -0.0% |
| ROE | 3.3% | 4.4% | 5.5% | 6.4% | 5.9% | -0.5% |
| Net Debt/EBITDA | 4.3x | 6.1x | 6.4x | 6.0x | 5.8x | -0.2x |
Revenue and profitability
CK Life Sciences International Holdings Inc's Revenue decreased slightly on 1.0%. EBITDA Margin showed almost no change in FY2016.
Gross Margin decreased slightly on 1.3 pp from 35.4% to 34.1% in FY2016.
Net Income marign decreased slightly on 0.62 pp from 5.8% to 5.2% in FY2016.
Return on investment
The company operates at low ROIC (4.74%) and ROE (5.94%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.51 pp from 6.4% to 5.9% in FY2016.
Leverage (Debt)
Debt level is 5.8x Net Debt / EBITDA and 7.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 6.0x to 5.8x in FY2016. Debt decreased on 3.9% while cash increased on 2.2%.
Appendix 1: Peers in Biotechnology
Below you can find CK Life Sciences International Holdings Inc 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) | | 29.9% | 49.3% | 26.2% | 18.6% |
| 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) | -16.7% | 33.2% | 10.3% | 21.6% | 7.3% |
|---|
| CK Life Sciences International Holdings Inc ($775) | | 9.4% | -0.3% | -0.7% | -1.0% |
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% | 80.3% |
| 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% | 80.3% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 34.2% | 35.0% | 35.1% | 35.4% | 34.1% |
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% | 23.4% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 6.9% | 7.4% | 9.1% | 9.2% | 6.6% |
| |
|---|
| Median (8 companies) | 13.0% | 14.6% | 15.2% | 15.9% | 23.4% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 9.9% | 10.0% | 10.7% | 11.3% | 11.2% |
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% | |
| Global Bio-Chem Technology Group Co Ltd ($809) | 17.7% | 1.7% | 3.0% | 2.8% | |
| |
|---|
| Median (8 companies) | 29.9% | 12.0% | 7.1% | 4.7% | 31.1% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 3.8% | 5.8% | 9.9% | 6.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Essex Bio-technology Ltd ($1061) | 22.6% | 25.2% | 28.5% | 31.4% | 30.7% |
| 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% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 12.4% | 10.1% | 9.8% | 9.5% | 4.3% |
| |
|---|
| Median (8 companies) | 12.7% | 10.9% | 10.5% | 12.1% | 15.8% |
|---|
| CK Life Sciences International Holdings Inc ($775) | 4.2% | 4.1% | 4.3% | 4.8% | 4.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amgen Inc ($4332) | 3.5x | 4.0x | 3.3x | 2.6x | 2.6x |
| Essex Bio-technology Ltd ($1061) | 0.3x | -0.0x | -0.1x | -0.1x | -0.6x |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 2.0x | 1.4x | 0.9x | -1.3x | -1.8x |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | -0.4x | -2.4x | -2.2x | -1.9x | -2.1x |
| |
|---|
| Median (4 companies) | 1.1x | -0.0x | -0.1x | -0.1x | -1.2x |
|---|
| CK Life Sciences International Holdings Inc ($775) | 4.3x | 6.1x | 6.4x | 6.0x | 5.8x |
