Tong Ren Tang Technologies Co Ltd EBITDA Margin dropped on 23.9 pp from 23.9% to in 2016
24/03/2017 • About Tong Ren Tang Technologies Co Ltd (
$1666) • By InTwits
Tong Ren Tang Technologies Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is -0.3x while industry average is -1.3x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tong Ren Tang Technologies Co Ltd ($1666) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,439 | 2,911 | 3,341 | 3,987 | 4,665 | 17.0% |
| Gross Profit | 1,237 | 1,441 | 1,615 | 1,991 | | -100.0% |
| SG&A | 750 | 826 | 904 | 1,110 | | -100.0% |
| EBITDA | 520 | 653 | 771 | 954 | | -100.0% |
| Net Income | 330 | 390 | 462 | 540 | 596 | 10.2% |
Balance Sheet
|
|---|
| Cash | 841 | 2,367 | 2,151 | 2,259 | | -100.0% |
| Short Term Debt | 125 | 155 | 100 | 182 | | -100.0% |
| Long Term Debt | 0 | 39 | 0 | 0 | | -100.0% |
Cash flow
|
|---|
| Capex | 114 | 200 | 277 | 177 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 26.0% | 19.3% | 14.8% | 19.3% | 17.0% | |
| EBITDA growth | 39.3% | 25.6% | 18.0% | 23.7% | | |
| Gross Margin | 50.7% | 49.5% | 48.3% | 49.9% | | -49.9% |
| EBITDA Margin | 21.3% | 22.4% | 23.1% | 23.9% | 0.0% | -23.9% |
| Net Income Margin | 13.5% | 13.4% | 13.8% | 13.6% | 12.8% | -0.8% |
| SG&A, % of revenue | 30.8% | 28.4% | 27.0% | 27.8% | | -27.8% |
| CAPEX, % of revenue | 4.7% | 6.9% | 8.3% | 4.4% | | -4.4% |
| ROIC | 21.4% | 18.4% | 16.2% | 17.7% | | -17.7% |
| ROE | 18.1% | 15.0% | 13.6% | 14.4% | | -14.4% |
| Net Debt/EBITDA | -1.4x | -3.3x | -2.7x | -2.2x | | 2.2x |
Revenue and profitability
Tong Ren Tang Technologies Co Ltd's Revenue jumped on 17.0%.
Net Income marign decreased slightly on 0.79 pp from 13.6% to 12.8% in FY2016.
Appendix 1: Peers in Pharmaceuticals
Below we provide Tong Ren Tang Technologies Co Ltd benchmarking against other companies in Pharmaceuticals 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 Health Group Inc ($8225) | | -48.0% | -60.1% | 244.1% | -1.2% |
| Wai Yuen Tong Medicine Holdings Ltd ($897) | | 45.9% | -10.5% | 105.6% | 40.9% |
| Oriental Unicorn Agricultural Group Ltd ($8120) | | -78.1% | 16.8% | 100.8% | 6.9% |
| 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) | 13.3% | 11.8% | 15.2% | 2.7% | 8.6% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | | 19.3% | 14.8% | 19.3% | 17.0% |
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) | 39.4% | 38.3% | 52.2% | 50.0% | 52.5% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 50.7% | 49.5% | 48.3% | 49.9% | |
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) | 19.6% | 20.2% | 21.4% | 19.0% | 11.9% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 21.3% | 22.4% | 23.1% | 23.9% | |
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% | 4.0% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 4.7% | 6.9% | 8.3% | 4.4% | |
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) | 12.2% | 9.3% | 10.0% | 9.1% | 6.4% |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | 21.4% | 18.4% | 16.2% | 17.7% | |
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 | -0.3x | -0.6x | -0.4x | -1.3x |
|---|
| Tong Ren Tang Technologies Co Ltd ($1666) | -1.4x | -3.3x | -2.7x | -2.2x | |
