China NT Pharma Group Co Ltd reports 34.0% EBITDA growth in 2016 and 4.3 pp EBITDA Margin growth from 17.7% to 22.0%
22/03/2017 • About China NT Pharma Group Co Ltd (
$1011) • By InTwits
China NT Pharma Group Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 22.0% in FY2016 vs. 17.7% in FY2015 vs. -52.6% in FY2012
- China NT Pharma Group Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -2.1%0
- The company has business model with low profitability: ROIC is at 8.7%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is -1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China NT Pharma Group Co Ltd ($1011) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 739.1 | 754.1 | 864.6 | 847.7 | 915.1 | 7.9% |
| Gross Profit | 271.8 | 289.0 | 391.3 | 451.5 | 493.6 | 9.3% |
| SG&A | 709.1 | 467.0 | 346.0 | 319.9 | 311.5 | -2.6% |
| EBITDA | -389.1 | -147.7 | 100.8 | 150.2 | 201.2 | 34.0% |
| Net Income | -1,109.3 | -673.5 | 2.1 | 87.7 | 116.2 | 32.5% |
Balance Sheet
|
|---|
| Cash | 246.0 | 229.2 | 346.1 | 328.0 | 89.6 | -72.7% |
| Short Term Debt | 1,011.0 | 667.8 | 952.3 | 261.2 | 892.4 | 241.7% |
| Long Term Debt | 20.0 | 309.9 | 120.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 43.4 | 9.1 | 113.4 | 38.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -73.2% | 2.0% | 14.7% | -2.0% | 7.9% | |
| EBITDA growth | -205.6% | -62.0% | -168.3% | 48.9% | 34.0% | |
| Gross Margin | 36.8% | 38.3% | 45.3% | 53.3% | 53.9% | 0.7% |
| EBITDA Margin | -52.6% | -19.6% | 11.7% | 17.7% | 22.0% | 4.3% |
| Net Income Margin | -150.1% | -89.3% | 0.2% | 10.3% | 12.7% | 2.4% |
| SG&A, % of revenue | 95.9% | 61.9% | 40.0% | 37.7% | 34.0% | -3.7% |
| CAPEX, % of revenue | 5.9% | 1.2% | 13.1% | 4.5% | | -4.5% |
| ROIC | -17.0% | -8.9% | 4.4% | 7.6% | 8.7% | 1.0% |
| ROE | -75.8% | -123.1% | 1.0% | 15.9% | 12.1% | -3.8% |
| Net Debt/EBITDA | | | 7.2x | -0.4x | 4.0x | 4.4x |
Revenue and profitability
The company's Revenue increased on 7.9%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.3 pp from 17.7% to 22.0% in FY2016.
Gross Margin increased slightly on 0.68 pp from 53.3% to 53.9% in FY2016. SG&A as a % of Revenue decreased on 3.7 pp from 37.7% to 34.0% in FY2016.
Net Income marign increased on 2.4 pp from 10.3% to 12.7% in FY2016.
Return on investment
The company operates at good ROE (12.12%) while ROIC is low (8.67%). ROIC increased slightly on 1.0 pp from 7.6% to 8.7% in FY2016. ROE decreased on 3.8 pp from 15.9% to 12.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.4x. Net Debt / EBITDA surged on 4.4x from -0.4x to 4.0x in FY2016. Debt surged on 242% while cash dropped on 72.7%.
Appendix 1: Peers in Pharmaceuticals
Below you can find China NT Pharma Group Co Ltd benchmarking vs. other companies in Pharmaceuticals 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 Health Group Inc ($8225) | 58.5% | -48.0% | -60.1% | 244.1% | |
| Wai Yuen Tong Medicine Holdings Ltd ($897) | | 45.9% | -10.5% | 105.6% | 40.9% |
| Oriental Unicorn Agricultural Group Ltd ($8120) | 30.2% | -78.1% | 16.8% | 100.8% | |
| China Traditional Chinese Medicine Co Ltd ($570) | | 35.2% | 90.0% | 40.0% | 76.1% |
| RM Group Holdings Ltd ($8185) | | 4.6% | -16.0% | 34.2% | -16.6% |
| |
|---|
| Median (41 companies) | 16.2% | 13.5% | 15.3% | 4.0% | 10.8% |
|---|
| China NT Pharma Group Co Ltd ($1011) | | 2.0% | 14.7% | -2.0% | 7.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Luye Pharma Group Ltd ($2186) | 83.5% | 83.6% | 81.0% | 81.4% | |
| Consun Pharmaceutical Group Ltd ($1681) | 75.7% | 79.1% | 78.3% | 80.7% | |
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 82.0% | 81.5% | 80.9% | 79.9% | |
| RM Group Holdings Ltd ($8185) | 79.6% | 78.8% | 76.6% | 77.7% | 77.4% |
| Sino Biopharmaceutical Ltd ($1177) | 78.5% | 77.5% | 76.4% | 77.7% | 79.2% |
| |
|---|
| Median (40 companies) | 42.5% | 41.1% | 52.2% | 50.0% | 49.9% |
|---|
| China NT Pharma Group Co Ltd ($1011) | 36.8% | 38.3% | 45.3% | 53.3% | 53.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 193.8% | 205,840.0% | -15,344.8% | 49,650.0% | 26.0% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 38.8% | 65.4% | 70.9% | 93.3% | |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 60.6% | 21.0% | 28.8% | 61.1% | |
| U-Home Group Holdings Ltd ($2327) | 9.8% | -16.6% | -46.7% | 51.7% | |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 41.3% | 45.4% | 47.5% | 49.1% | 50.9% |
| |
|---|
| Median (41 companies) | 20.7% | 20.6% | 21.4% | 21.0% | 10.6% |
|---|
| China NT Pharma Group Co Ltd ($1011) | -52.6% | -19.6% | 11.7% | 17.7% | 22.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hao Wen Holdings Ltd ($8019) | 30.0% | 2.3% | 38.2% | 44.8% | |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 0.9% | 1.4% | 7.6% | 40.5% | |
| Lee's Pharmaceutical Holdings Ltd ($950) | 18.6% | 20.9% | 7.1% | 26.1% | |
| Tianda Pharmaceuticals Ltd ($455) | 6.0% | 3.9% | 10.5% | 24.4% | 22.9% |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 16.8% | 52.4% | 39.6% | 18.7% | |
| |
|---|
| Median (40 companies) | 8.3% | 9.7% | 7.4% | 4.6% | 2.8% |
|---|
| China NT Pharma Group Co Ltd ($1011) | 5.9% | 1.2% | 13.1% | 4.5% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Biopharmaceutical Ltd ($1177) | 26.2% | 26.8% | 26.5% | 26.2% | 24.3% |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 25.3% | 27.5% | 23.8% | 25.9% | 25.1% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 13.7% | 18.3% | 22.0% | 25.4% | |
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 12.6% | 14.0% | 17.8% | 23.5% | |
| Lee's Pharmaceutical Holdings Ltd ($950) | 26.1% | 22.0% | 22.4% | 22.7% | |
| |
|---|
| Median (42 companies) | 12.3% | 9.3% | 11.1% | 10.9% | 4.0% |
|---|
| China NT Pharma Group Co Ltd ($1011) | -17.0% | -8.9% | 4.4% | 7.6% | 8.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 2.3x | 3.7x | | 22.2x | -5.1x |
| U-Home Group Holdings Ltd ($2327) | 10.1x | | | 9.9x | |
| Lansen Pharmaceutical Holdings Ltd ($503) | 1.7x | 2.8x | 3.4x | 4.7x | |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 5.4x | 4.0x | 3.4x | 4.3x | |
| United Laboratories International Holdings Ltd/The ($3933) | 6.5x | 4.6x | 4.2x | 4.0x | |
| |
|---|
| Median (34 companies) | -0.4x | -0.4x | -0.7x | -0.6x | -2.2x |
|---|
| China NT Pharma Group Co Ltd ($1011) | | | 7.2x | -0.4x | 4.0x |
