Evergrande Health Industry Group Ltd reports 46.6% Net Income decline in 2016
22/03/2017 • About Evergrande Health Industry Group Ltd (
$708) • By InTwits
Evergrande Health Industry Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. -3.1% in FY2015 vs. 9.9% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 10.9x while industry average is -0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Evergrande Health Industry Group Ltd ($708) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 504.8 | 495.2 | 455.6 | 416.2 | 528.1 | 26.9% |
| Gross Profit | 163.7 | 162.1 | 155.7 | 148.6 | | -100.0% |
| SG&A | | 137.0 | 144.9 | 195.0 | | -100.0% |
| EBITDA | 50.0 | 51.3 | 36.8 | -12.8 | | |
| Net Income | 29.7 | 22.3 | 11.0 | 96.9 | 51.7 | -46.6% |
Balance Sheet
|
|---|
| Cash | 111.4 | 66.8 | 90.2 | 442.6 | | -100.0% |
| Short Term Debt | 53.5 | 0.0 | 0.0 | 58.3 | | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 124.9 | | -100.0% |
Cash flow
|
|---|
| Capex | 73.7 | 12.0 | 13.3 | 56.2 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 5.0% | -1.9% | -8.0% | -8.7% | 26.9% | |
| EBITDA growth | -14.8% | 2.7% | -28.3% | -134.6% | | |
| Gross Margin | 32.4% | 32.7% | 34.2% | 35.7% | | -35.7% |
| EBITDA Margin | 9.9% | 10.4% | 8.1% | -3.1% | 0.0% | 3.1% |
| Net Income Margin | 5.9% | 4.5% | 2.4% | 23.3% | 9.8% | -13.5% |
| SG&A, % of revenue | | 27.7% | 31.8% | 46.8% | | -46.8% |
| CAPEX, % of revenue | 14.6% | 2.4% | 2.9% | 13.5% | | -13.5% |
| ROIC | 8.6% | 5.8% | 2.6% | -7.1% | | 7.1% |
| ROE | 7.9% | 5.0% | 2.4% | 18.9% | | -18.9% |
| Net Debt/EBITDA | -1.2x | -1.3x | -2.5x | | | 0.0x |
Revenue and profitability
Evergrande Health Industry Group Ltd's Revenue surged on 26.9%.
Net Income marign dropped on 13.5 pp from 23.3% to 9.8% in FY2016.
Appendix 1: Peers in Media
Below we provide Evergrande Health Industry Group Ltd benchmarking against other companies in Media 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 |
|---|
| CMMB Vision Holdings Ltd ($471) | | 168.1% | 27.8% | 850.0% | |
| SCMP Group Ltd ($583) | | 12.5% | -95.9% | 12.5% | 8.2% |
| Hong Kong Economic Times Holdings Ltd ($423) | | 2.7% | 3.1% | 5.3% | 4.9% |
| Modern Media Holdings ($72) | | -3.7% | -4.3% | -1.3% | -12.9% |
| Focus Media Network Ltd ($8112) | -10.6% | 34.6% | 5.6% | -5.2% | |
| |
|---|
| Median (18 companies) | -1.6% | -1.8% | -3.9% | -9.2% | -10.2% |
|---|
| Evergrande Health Industry Group Ltd ($708) | | -1.9% | -8.0% | -8.7% | 26.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| I-CABLE Communications Ltd ($1097) | 94.8% | 94.7% | 94.1% | 94.4% | 94.0% |
| Focus Media Network Ltd ($8112) | 68.0% | 67.2% | 50.8% | 57.6% | |
| Television Broadcasts Ltd ($511) | 62.9% | 60.9% | 59.0% | 54.9% | |
| One Media Group Ltd ($426) | 57.3% | 56.7% | 54.5% | 52.7% | 45.6% |
| Modern Media Holdings ($72) | 57.5% | 55.8% | 55.6% | 50.8% | |
| |
|---|
| Median (15 companies) | 39.0% | 40.5% | 36.2% | 37.3% | 38.2% |
|---|
| Evergrande Health Industry Group Ltd ($708) | 32.4% | 32.7% | 34.2% | 35.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 23.5% | 20.5% | 218.1% | 193.5% | |
| Media Chinese International Ltd ($685) | 20.0% | 18.3% | 18.1% | 16.5% | 14.3% |
| One Media Group Ltd ($426) | 18.7% | 23.0% | 22.8% | 15.2% | -5.8% |
| Phoenix Satellite Television Holdings Ltd ($2008) | 30.1% | 31.1% | 24.6% | 14.1% | 12.7% |
| Oriental Press Group ($18) | 9.5% | 12.8% | 14.6% | 13.9% | 9.2% |
| |
|---|
| Median (18 companies) | 12.9% | 11.6% | 12.5% | 9.8% | 9.2% |
|---|
| Evergrande Health Industry Group Ltd ($708) | 9.9% | 10.4% | 8.1% | -3.1% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 7.0% | 5.3% | 52.2% | 85.2% | |
| I-CABLE Communications Ltd ($1097) | 10.1% | 7.6% | 11.3% | 13.0% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 8.4% | 8.5% | 1.3% | 10.0% | 1.5% |
| Tom Group Ltd ($2383) | 11.9% | 8.4% | 9.4% | 9.5% | |
| China 33 Media Group Ltd ($8087) | 1.4% | 0.6% | 1.5% | 8.5% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.3% | 2.3% | 5.0% | 1.3% |
|---|
| Evergrande Health Industry Group Ltd ($708) | 14.6% | 2.4% | 2.9% | 13.5% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Media Chinese International Ltd ($685) | 18.6% | 17.8% | 18.4% | 15.6% | 11.1% |
| One Media Group Ltd ($426) | 25.6% | 21.8% | 16.0% | 8.9% | -6.5% |
| Next Media Ltd ($282) | 8.5% | 6.7% | 8.2% | 6.8% | -1.5% |
| Modern Media Holdings ($72) | 20.6% | 10.4% | 9.3% | 5.5% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 11.5% | -1.5% | 3.2% | 5.2% | 7.0% |
| |
|---|
| Median (18 companies) | 3.7% | 4.3% | 2.6% | 1.7% | -1.5% |
|---|
| Evergrande Health Industry Group Ltd ($708) | 8.6% | 5.8% | 2.6% | -7.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tom Group Ltd ($2383) | | | 8.1x | 16.7x | 25.4x |
| I-CABLE Communications Ltd ($1097) | -4.0x | -0.8x | 0.2x | 2.0x | 3.8x |
| One Media Group Ltd ($426) | -2.3x | -0.6x | -1.1x | 1.5x | |
| Modern Media Holdings ($72) | -0.8x | -0.9x | 0.1x | 1.0x | |
| Media Chinese International Ltd ($685) | -1.4x | 0.8x | 0.6x | 0.2x | -0.5x |
| |
|---|
| Median (12 companies) | -1.9x | -1.3x | -1.1x | -0.2x | -0.7x |
|---|
