Jintian Pharmaceutical Group Ltd EBITDA dropped on 117% in 2016 and Revenue dropped on 29.7%
23/03/2017 • About Jintian Pharmaceutical Group Ltd (
$2211) • By InTwits
Jintian Pharmaceutical Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jintian Pharmaceutical Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -2.4%
- EBITDA Margin is declining: -0.7% in FY2016 vs. 2.9% in FY2015 vs. 13.6% in FY2012
- EBITDA Margin is quite volatile: -0.7% in FY2016, 2.9% in FY2015, 16.4% in FY2014, 16.5% in FY2013, 13.6% in FY2012
- The company has unprofitable business model: ROIC is at -2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jintian Pharmaceutical Group Ltd ($2211) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,326 | 3,323 | 4,356 | 4,806 | 3,379 | -29.7% |
| Gross Profit | 546 | 936 | 1,267 | 1,341 | 874 | -34.8% |
| SG&A | 217 | 388 | 556 | 1,091 | 819 | -24.9% |
| EBITDA | 316 | 547 | 713 | 141 | -24 | -116.8% |
| Net Income | 214 | 355 | 473 | 31 | -88 | -381.8% |
Balance Sheet
|
|---|
| Cash | 456 | 1,564 | 1,349 | 1,333 | 1,107 | -16.9% |
| Short Term Debt | 42 | 9 | 378 | 262 | 221 | -15.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 15 | 43 | 64 | 6 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 57.8% | 42.9% | 31.1% | 10.3% | -29.7% | |
| EBITDA growth | 26.7% | 73.3% | 30.3% | -80.2% | -116.8% | |
| Gross Margin | 23.5% | 28.2% | 29.1% | 27.9% | 25.9% | -2.0% |
| EBITDA Margin | 13.6% | 16.5% | 16.4% | 2.9% | -0.7% | -3.6% |
| Net Income Margin | 9.2% | 10.7% | 10.9% | 0.6% | -2.6% | -3.2% |
| SG&A, % of revenue | 9.3% | 11.7% | 12.8% | 22.7% | 24.2% | 1.5% |
| CAPEX, % of revenue | 0.6% | 1.3% | 1.5% | 0.1% | | -0.1% |
| ROIC | 52.8% | 32.1% | 24.0% | 3.2% | -2.4% | -5.6% |
| ROE | 46.9% | 24.5% | 19.1% | 1.2% | -3.3% | -4.5% |
| Net Debt/EBITDA | -1.3x | -2.8x | -1.4x | -7.6x | | 7.6x |
Revenue and profitability
The company's Revenue dropped on 29.7%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 2.9% to -0.70% in FY2016.
Gross Margin decreased on 2.0 pp from 27.9% to 25.9% in FY2016. SG&A as a % of Revenue increased slightly on 1.5 pp from 22.7% to 24.2% in FY2016.
Net Income marign decreased on 3.2 pp from 0.65% to -2.6% in FY2016.
Return on investment
The company operates at negative ROIC (-2.39%) and ROE (-3.32%). ROIC decreased on 5.6 pp from 3.2% to -2.4% in FY2016. ROE decreased on 4.5 pp from 1.2% to -3.3% in FY2016.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 7.6x from -7.6x to in FY2016. Debt dropped on 15.6% while cash dropped on 16.9%.
Appendix 1: Peers in Retail
Below we provide Jintian Pharmaceutical Group Ltd benchmarking against other companies in Retail 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 Nuclear Industry 23 International Corp Ltd ($611) | | 85.6% | -42.1% | 419.8% | 21.8% |
| Noble House China Holdings Ltd ($8246) | | -20.2% | -24.8% | 117.2% | 129.1% |
| Vongroup Ltd ($318) | | 23.7% | -80.2% | 90.3% | -7.2% |
| Nanjing Sinolife United Co Ltd ($3332) | 45.6% | 29.5% | 29.6% | 57.3% | |
| Shanghai La Chapelle Fashion Co Ltd ($6116) | | 72.8% | 23.0% | 48.3% | 12.5% |
| |
|---|
| Median (117 companies) | 9.9% | 6.1% | 2.9% | -1.0% | -2.5% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | | 42.9% | 31.1% | 10.3% | -29.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vongroup Ltd ($318) | | | 95.1% | 99.1% | 99.0% |
| Modern Beauty Salon Holdings Ltd ($919) | 97.4% | 95.9% | 96.8% | 96.7% | 96.8% |
| Moiselle International Holdings Ltd ($130) | 81.2% | 83.8% | 80.6% | 83.2% | 77.6% |
| Embry Holdings Ltd ($1388) | 81.2% | 80.4% | 82.3% | 81.6% | |
| Nanjing Sinolife United Co Ltd ($3332) | 86.5% | 89.3% | 90.9% | 80.6% | |
| |
|---|
| Median (103 companies) | 37.2% | 36.4% | 35.5% | 33.9% | 44.4% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 23.5% | 28.2% | 29.1% | 27.9% | 25.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Energy Development Holdings Ltd ($228) | -58.1% | -72.3% | -84.0% | 1,070.6% | |
| Golden Eagle Retail Group Ltd ($3308) | 48.5% | 47.3% | 42.8% | 55.4% | |
| Nanjing Sinolife United Co Ltd ($3332) | 51.6% | 56.9% | 54.4% | 44.8% | |
| Lifestyle International Holdings Ltd ($1212) | 47.5% | 47.0% | 44.7% | 43.4% | 46.3% |
| China Dongxiang Group Co Ltd ($3818) | 6.0% | 5.6% | 58.3% | 41.4% | 61.6% |
| |
|---|
| Median (117 companies) | 10.3% | 7.3% | 8.9% | 7.4% | 6.8% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 13.6% | 16.5% | 16.4% | 2.9% | -0.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Culture Landmark Investment Ltd ($674) | 11.6% | 19.4% | 15.7% | 47.2% | 3.9% |
| Springland International Holdings Ltd ($1700) | 31.9% | 17.4% | 26.5% | 36.9% | |
| Merry Garden Holdings Ltd ($1237) | 18.6% | 28.6% | 15.1% | 34.2% | |
| China Energy Development Holdings Ltd ($228) | 1.6% | 0.2% | 0.0% | 27.4% | |
| Golden Eagle Retail Group Ltd ($3308) | 28.5% | 9.4% | 26.7% | 25.4% | |
| |
|---|
| Median (117 companies) | 4.1% | 3.6% | 3.8% | 3.5% | 2.1% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 0.6% | 1.3% | 1.5% | 0.1% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Modern Beauty Salon Holdings Ltd ($919) | 50.7% | -4.6% | 81.3% | 71.8% | 13.3% |
| JC Group Holdings Ltd ($8326) | | 215.6% | 92.8% | 66.3% | 81.7% |
| Starbucks Corp ($4337) | 36.4% | -6.0% | 52.8% | 51.4% | 46.2% |
| Sa Sa International Holdings Ltd ($178) | 53.5% | 52.7% | 49.0% | 39.8% | 19.0% |
| Noble House China Holdings Ltd ($8246) | 17.7% | -67.7% | -113.8% | 35.6% | 68.8% |
| |
|---|
| Median (117 companies) | 12.2% | 8.8% | 8.5% | 5.8% | 7.5% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 52.8% | 32.1% | 24.0% | 3.2% | -2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sparkle Roll Group Ltd ($970) | 0.6x | 4.0x | 9.3x | 23.5x | 8.5x |
| Trinity Ltd ($891) | -0.2x | 0.2x | 0.6x | 18.2x | |
| Parkson Retail Group Ltd ($3368) | 0.8x | 2.3x | 3.6x | 9.8x | 11.1x |
| Maoye International Holdings Ltd ($848) | 2.9x | 3.3x | 3.4x | 9.0x | |
| Century Ginwa Retail Holdings Ltd ($162) | 2.0x | 2.5x | 4.8x | 7.3x | |
| |
|---|
| Median (91 companies) | -0.5x | -0.5x | -0.2x | -0.5x | -0.4x |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | -1.3x | -2.8x | -1.4x | -7.6x | |
