Essex Bio-technology Ltd reports 29.9% Net Income growth in 2016 and 18.6% Revenue growth
21/03/2017 • About Essex Bio-technology Ltd (
$1061) • By InTwits
Essex Bio-technology Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Essex Bio-technology Ltd is a fast growth stock: FY2016 revenue growth was 18.6%, 5 year revenue CAGR was 29.5% at FY2016 ROIC 30.7%
- The company has highly profitable business model: ROIC is at 30.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Essex Bio-technology Ltd ($1061) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 267.3 | 347.0 | 518.3 | 654.0 | 775.7 | 18.6% |
| Gross Profit | 243.7 | 310.9 | 411.3 | 529.6 | 623.0 | 17.6% |
| SG&A | 194.8 | 237.6 | 313.7 | 403.3 | 458.5 | 13.7% |
| EBITDA | 50.8 | 76.0 | 110.2 | 147.9 | 181.8 | 23.0% |
| Net Income | 39.0 | 54.9 | 75.3 | 104.9 | 136.3 | 29.9% |
Balance Sheet
|
|---|
| Cash | 59.8 | 54.5 | 62.0 | 64.6 | 156.2 | 141.7% |
| Short Term Debt | 73.8 | 50.8 | 50.5 | 51.0 | 38.8 | -24.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 97.9 | 36.2 | 7.5 | 11.4 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 25.6% | 29.9% | 49.3% | 26.2% | 18.6% | |
| EBITDA growth | 32.6% | 49.6% | 45.0% | 34.2% | 23.0% | |
| Gross Margin | 91.2% | 89.6% | 79.3% | 81.0% | 80.3% | -0.7% |
| EBITDA Margin | 19.0% | 21.9% | 21.3% | 22.6% | 23.4% | 0.8% |
| Net Income Margin | 14.6% | 15.8% | 14.5% | 16.0% | 17.6% | 1.5% |
| SG&A, % of revenue | 72.9% | 68.5% | 60.5% | 61.7% | 59.1% | -2.6% |
| CAPEX, % of revenue | 36.6% | 10.4% | 1.5% | 1.7% | | -1.7% |
| ROIC | 22.6% | 25.2% | 28.5% | 31.4% | 30.7% | -0.7% |
| ROE | 21.7% | 24.4% | 25.7% | 28.2% | 28.1% | -0.1% |
| Net Debt/EBITDA | 0.3x | -0.0x | -0.1x | -0.1x | -0.6x | -0.6x |
Revenue and profitability
Essex Bio-technology Ltd's Revenue jumped on 18.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 27.2 pp from 18.0% to -9.2% in FY2016.
Gross Margin decreased slightly on 0.65 pp from 81.0% to 80.3% in FY2016. SG&A as a % of Revenue decreased on 2.6 pp from 61.7% to 59.1% in FY2016.
Net Income marign increased slightly on 1.5 pp from 16.0% to 17.6% in FY2016.
Return on investment
The company operates at high and attractive ROIC (30.73%) and ROE (28.11%). ROIC decreased slightly on 0.70 pp from 31.4% to 30.7% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -0.1x to -0.6x in FY2016. Debt dropped on 24.0% while cash jumped on 142%.
Appendix 1: Peers in Biotechnology
Below we provide Essex Bio-technology Ltd benchmarking against other companies in Biotechnology industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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% | |
| 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% | |
| Amgen Inc ($4332) | | 8.2% | 7.4% | 8.0% | 6.1% |
| |
|---|
| Median (8 companies) | -16.7% | 22.9% | 3.5% | 14.1% | 6.1% |
|---|
| Essex Bio-technology Ltd ($1061) | | 29.9% | 49.3% | 26.2% | 18.6% |
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% | |
| 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% |
|---|
| Essex Bio-technology Ltd ($1061) | 91.2% | 89.6% | 79.3% | 81.0% | 80.3% |
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% |
| CK Life Sciences International Holdings Inc ($775) | 9.9% | 10.0% | 10.7% | 11.3% | 11.2% |
| 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% | 11.2% |
|---|
| Essex Bio-technology Ltd ($1061) | 19.0% | 21.9% | 21.3% | 22.6% | 23.4% |
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) | 20.8% | 9.7% | 9.6% | 6.3% | 31.1% |
|---|
| Essex Bio-technology Ltd ($1061) | 36.6% | 10.4% | 1.5% | 1.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| CK Life Sciences International Holdings Inc ($775) | 4.2% | 4.1% | 4.3% | 4.8% | 4.7% |
| |
|---|
| Median (8 companies) | 8.3% | 7.1% | 7.0% | 7.2% | 4.7% |
|---|
| Essex Bio-technology Ltd ($1061) | 22.6% | 25.2% | 28.5% | 31.4% | 30.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CK Life Sciences International Holdings Inc ($775) | 4.3x | 6.1x | 6.4x | 6.0x | 5.8x |
| Amgen Inc ($4332) | 3.5x | 4.0x | 3.3x | 2.6x | 2.6x |
| 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) | 2.7x | 1.4x | 0.9x | 1.6x | 0.4x |
|---|
| Essex Bio-technology Ltd ($1061) | 0.3x | -0.0x | -0.1x | -0.1x | -0.6x |
