Hao Wen Holdings Ltd reports 27.0% revenue decline in FY2016
26/03/2017 • About Hao Wen Holdings Ltd (
$8019) • By InTwits
Hao Wen Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hao Wen Holdings Ltd is a company in decline: FY2016 revenue growth was -27.0%, 5 years revenue CAGR was -8.0%
- Hao Wen Holdings 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 -12.7%0
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hao Wen Holdings Ltd ($8019) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 78.127 | 56.351 | 34.685 | 37.209 | 27.153 | -27.0% |
| Gross Profit | 7.687 | 2.918 | 7.631 | 9.638 | | -100.0% |
| SG&A | 26.816 | 57.596 | 17.958 | 20.022 | | -100.0% |
| EBITDA | 2.644 | -36.542 | 7.432 | -3.272 | | |
| Net Income | 17.606 | -118.501 | -12.625 | -92.671 | -57.079 | |
Balance Sheet
|
|---|
| Cash | 4.569 | 9.024 | 29.406 | 3.437 | | -100.0% |
| Short Term Debt | 121.754 | 0.000 | 0.609 | 0.884 | | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 1.970 | 2.437 | | -100.0% |
Cash flow
|
|---|
| Capex | 23.429 | 1.309 | 13.255 | 16.673 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 89.8% | -27.9% | -38.4% | 7.3% | -27.0% | |
| EBITDA growth | -155.8% | -1,482.1% | -120.3% | -144.0% | | |
| Gross Margin | 9.8% | 5.2% | 22.0% | 25.9% | | -25.9% |
| EBITDA Margin | 3.4% | -64.8% | 21.4% | -8.8% | 0.0% | 8.8% |
| Net Income Margin | 22.5% | -210.3% | -36.4% | -249.1% | -210.2% | 38.8% |
| SG&A, % of revenue | 34.3% | 102.2% | 51.8% | 53.8% | | -53.8% |
| CAPEX, % of revenue | 30.0% | 2.3% | 38.2% | 44.8% | | -44.8% |
| ROIC | -10.4% | -64.2% | 1.1% | -1.6% | | 1.6% |
| ROE | | | -7.4% | -32.3% | | 32.3% |
| Net Debt/EBITDA | 44.3x | | -3.6x | | | 0.0x |
Revenue and profitability
Hao Wen Holdings Ltd's Revenue dropped on 27.0%.
Net Income marign jumped on 38.8 pp from -249% to -210% in FY2016.
Appendix 1: Peers in Pharmaceuticals
Below we provide Hao Wen Holdings 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) | 13.1% | 13.5% | 15.3% | 2.7% | 8.7% |
|---|
| Hao Wen Holdings Ltd ($8019) | | -27.9% | -38.4% | 7.3% | -27.0% |
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) | 42.5% | 41.1% | 52.2% | 50.0% | 52.5% |
|---|
| Hao Wen Holdings Ltd ($8019) | 9.8% | 5.2% | 22.0% | 25.9% | |
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% | 11.9% |
|---|
| Hao Wen Holdings Ltd ($8019) | 3.4% | -64.8% | 21.4% | -8.8% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Real Nutriceutical Group Ltd ($2010) | 22.9% | 29.5% | 22.6% | 16.9% | |
| |
|---|
| Median (40 companies) | 8.2% | 9.7% | 7.4% | 4.5% | 4.0% |
|---|
| Hao Wen Holdings Ltd ($8019) | 30.0% | 2.3% | 38.2% | 44.8% | |
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% | 6.4% |
|---|
| Hao Wen Holdings Ltd ($8019) | -10.4% | -64.2% | 1.1% | -1.6% | |
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 (35 companies) | -0.4x | -0.4x | -0.6x | -0.4x | -1.3x |
|---|
