China Medical System Holdings Ltd EBITDA jumped on 39.4% in 2016 and Revenue surged on 37.9%
23/03/2017 • About China Medical System Holdings Ltd (
$867) • By InTwits
China Medical System Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Medical System Holdings Ltd is a fast growth stock: FY2016 revenue growth was 37.9%, 5 year revenue CAGR was 29.2% at FY2016 ROIC 20.5%
- The company has highly profitable business model: ROIC is at 20.5%
- It operates with high leverage: Net Debt/EBITDA is 0.7x while industry average is -0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Medical System Holdings Ltd ($867) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,779 | 2,249 | 2,945 | 3,553 | 4,901 | 37.9% |
| Gross Profit | 1,046 | 1,226 | 1,655 | 2,046 | 2,912 | 42.3% |
| SG&A | 482 | 613 | 783 | 1,007 | 1,395 | 38.6% |
| EBITDA | 614 | 729 | 1,160 | 1,148 | 1,601 | 39.4% |
| Net Income | 537 | 636 | 1,046 | 996 | 1,376 | 38.2% |
Balance Sheet
|
|---|
| Cash | 668 | 488 | 244 | 509 | 482 | -5.1% |
| Short Term Debt | 404 | 314 | 484 | 464 | 1,612 | 247.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 36 | 148 | 65 | 43 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 30.8% | 26.5% | 31.0% | 20.7% | 37.9% | |
| EBITDA growth | 42.8% | 18.6% | 59.2% | -1.0% | 39.4% | |
| Gross Margin | 58.8% | 54.5% | 56.2% | 57.6% | 59.4% | 1.8% |
| EBITDA Margin | 34.5% | 32.4% | 39.4% | 32.3% | 32.7% | 0.4% |
| Net Income Margin | 30.2% | 28.3% | 35.5% | 28.0% | 28.1% | 0.0% |
| SG&A, % of revenue | 27.1% | 27.3% | 26.6% | 28.3% | 28.5% | 0.1% |
| CAPEX, % of revenue | 2.0% | 6.6% | 2.2% | 1.2% | | -1.2% |
| ROIC | 19.4% | 20.2% | 27.4% | 20.5% | 20.5% | 0.1% |
| ROE | 20.3% | 21.0% | 28.8% | 21.4% | 23.9% | 2.5% |
| Net Debt/EBITDA | -0.4x | -0.2x | 0.2x | -0.0x | 0.7x | 0.7x |
Revenue and profitability
The company's Revenue surged on 37.9%. EBITDA Margin showed almost no change in FY2016.
Gross Margin increased slightly on 1.8 pp from 57.6% to 59.4% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at high and attractive ROIC (20.53%) and ROE (23.92%). ROIC showed almost no change in FY2016. ROE increased on 2.5 pp from 21.4% to 23.9% in FY2016.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.7x from -0.039x to 0.7x in FY2016. Debt surged on 248% while cash decreased on 5.1%.
Management team
Lam Kong is a the company's CEO. Lam Kong has spent 11 years at the company. Chen Yanling is a The company's CFO. Chen Yanling has spent 11 years at the company.
Appendix 1: Peers in Healthcare-Products
Below you can find China Medical System Holdings Ltd benchmarking vs. other companies in Healthcare-Products 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 |
|---|
| Vitop Bioenergy Holdings Ltd ($1178) | | -3.2% | -27.3% | 92.4% | 281.7% |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 22.2% | 12.8% | 21.8% | 32.0% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | | 25.1% | 14.4% | 12.1% | 13.7% |
| BBI Life Sciences Corp ($1035) | 16.4% | 18.0% | 15.1% | 11.5% | |
| Lifetech Scientific Corp ($1302) | 29.3% | 27.3% | 22.4% | 10.2% | |
| |
|---|
| Median (16 companies) | 19.3% | 12.2% | 10.8% | 5.2% | -2.7% |
|---|
| China Medical System Holdings Ltd ($867) | | 26.5% | 31.0% | 20.7% | 37.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 80.1% | 81.6% | 81.4% | 81.1% | |
| PW Medtech Group Ltd ($1358) | 66.0% | 67.9% | 72.8% | 75.1% | |
| Golden Meditech Holdings Ltd ($801) | 69.1% | 69.8% | 70.2% | 72.8% | 45.8% |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 71.6% | 72.1% | 73.8% | 68.6% | |
| Microport Scientific Corp ($853) | 83.6% | 81.0% | 68.5% | 67.2% | |
| |
|---|
| Median (16 companies) | 50.0% | 50.8% | 48.2% | 47.8% | 32.8% |
|---|
| China Medical System Holdings Ltd ($867) | 58.8% | 54.5% | 56.2% | 57.6% | 59.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PW Medtech Group Ltd ($1358) | 44.2% | 30.6% | 41.6% | 48.6% | |
| Lifetech Scientific Corp ($1302) | 31.6% | 24.5% | 23.4% | 33.1% | |
| Hengan International Group Co Ltd ($1044) | 27.4% | 25.3% | 25.3% | 28.0% | 27.4% |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 28.5% | 28.0% | 29.0% | 27.8% | 25.1% |
| BBI Life Sciences Corp ($1035) | 25.7% | 26.0% | 12.4% | 25.5% | |
| |
|---|
| Median (16 companies) | 22.0% | 22.2% | 12.9% | 9.4% | 7.8% |
|---|
| China Medical System Holdings Ltd ($867) | 34.5% | 32.4% | 39.4% | 32.3% | 32.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 0.0% | 16.5% | 0.0% | 70.0% | |
| PW Medtech Group Ltd ($1358) | 14.8% | 22.3% | 30.2% | 42.1% | |
| Arts Optical International Hldgs ($1120) | 14.0% | 4.5% | 14.0% | 29.9% | |
| Golden Meditech Holdings Ltd ($801) | 12.7% | 51.2% | 27.3% | 26.1% | 56.4% |
| BBI Life Sciences Corp ($1035) | 23.6% | 6.7% | 6.4% | 20.0% | |
| |
|---|
| Median (16 companies) | 9.6% | 6.3% | 6.7% | 7.4% | 1.7% |
|---|
| China Medical System Holdings Ltd ($867) | 2.0% | 6.6% | 2.2% | 1.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifetech Scientific Corp ($1302) | 17.5% | 15.9% | 21.2% | 32.9% | |
| Hengan International Group Co Ltd ($1044) | 19.5% | 14.9% | 14.0% | 16.4% | 15.4% |
| Beijing Chunlizhengda Medical Instruments Co Ltd ($1858) | 22.2% | 20.9% | 21.0% | 12.1% | |
| Shandong Weigao Group Medical Polymer Co Ltd ($1066) | 10.5% | 11.7% | 12.8% | 11.8% | 10.4% |
| PW Medtech Group Ltd ($1358) | 30.7% | 9.2% | 10.0% | 10.7% | |
| |
|---|
| Median (16 companies) | 8.5% | 7.4% | 5.0% | 2.5% | 1.9% |
|---|
| China Medical System Holdings Ltd ($867) | 19.4% | 20.2% | 27.4% | 20.5% | 20.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Microport Scientific Corp ($853) | -1.0x | -2.8x | | 4.3x | |
| Techcomp Holdings Ltd ($1298) | 4.3x | 3.6x | 2.7x | 3.0x | |
| Hengan International Group Co Ltd ($1044) | 1.4x | 1.7x | 1.8x | 1.7x | 0.2x |
| PW Medtech Group Ltd ($1358) | -1.2x | -7.5x | -0.3x | -1.1x | |
| Lifetech Scientific Corp ($1302) | -3.5x | -2.8x | -2.7x | -1.1x | |
| |
|---|
| Median (11 companies) | -1.2x | -1.6x | -1.5x | -1.6x | -0.8x |
|---|
| China Medical System Holdings Ltd ($867) | -0.4x | -0.2x | 0.2x | -0.0x | 0.7x |
