Jintian Pharmaceutical Group Ltd reports 2,951% CAPEX growth in 2020 while 37.7% Revenue decline
24/09/2020 • About Jintian Pharmaceutical Group Ltd (
$2211) • By InTwits
Jintian Pharmaceutical Group Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jintian Pharmaceutical Group Ltd is a company in decline: FY2020 revenue growth was -37.7%, 5 years revenue CAGR was -20.7%
- The company operates at negative EBITDA Margin: -30.9%
- Jintian Pharmaceutical Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -16.6%
- The company has unprofitable business model: ROIC is -33.3%
- It operates with high leverage: Net Debt/EBITDA is 11.2x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 37.7%. During the last 5 years Revenue growth topped in FY2018 at -1.6% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.4 pp from 12.0% to 18.4% in FY2020.
Gross Margin decreased slightly on 1.00 pp from 13.5% to 12.5% in FY2020. Gross Margin declined at -3.1 pp per annum in FY2016-FY2020. SG&A as a % of Revenue surged on 19.9 pp from 26.0% to 45.9% in FY2020.
Net Income margin dropped on 21.6 pp from -11.0% to -32.5% in FY2020.
Investments (CAPEX, working capital and M&A)
Jintian Pharmaceutical Group Ltd's CAPEX/Revenue was 6.3% in FY2020. CAPEX/Revenue increased on 2.1 pp from 4.3% in FY2017 to 6.3% in FY2020. It's average level of CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at negative ROIC (-33.3%) and ROE (-33.0%). ROIC dropped on 18.3 pp from -15.1% to -33.3% in FY2020. ROE dropped on 18.5 pp from -14.6% to -33.0% in FY2020.
Leverage (Debt)
Debt level is 11.2x Net Debt / EBITDA and Debt / EBITDA. Debt jumped on 56.5% while cash dropped on 79.1%.
Jintian Pharmaceutical Group Ltd has no short term refinancing risk: cash is higher than short term debt (236.9%).
Financial and operational results
FY ended 30/06/2020
Jintian Pharmaceutical Group Ltd ($2211) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3,379 | 2,680 | 2,637 | 2,424 | 1,510 | -37.7% |
| Gross Profit | 874 | 478 | 378 | 327 | 188 | -42.3% |
| SG&A | 819 | 747 | 743 | 631 | 693 | 9.8% |
| EBITDA | -24 | -516 | -836 | -258 | -467 | |
| Net Income | -88 | -553 | -835 | -266 | -491 | |
Balance Sheet
|
|---|
| Cash | 1,107 | 1,064 | 929 | 629 | 131 | -79.1% |
| Short Term Debt | 221 | 39 | 45 | 38 | 55 | 46.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 4 | |
Cash flow
|
|---|
| Capex | | 114 | 49 | 3 | 96 | 2,950.9% |
Ratios
|
|---|
| Revenue growth | -29.7% | -20.7% | -1.6% | -8.1% | -37.7% | |
| EBITDA growth | -116.8% | 2,080.0% | 62.0% | -69.2% | 81.1% | |
|
|---|
| Gross Margin | 25.9% | 17.8% | 14.3% | 13.5% | 12.5% | -1.0% |
| EBITDA Margin | -0.7% | -19.3% | -31.7% | -10.6% | -30.9% | -20.3% |
| SG&A, % of revenue | 24.2% | 27.9% | 28.2% | 26.0% | 45.9% | 19.9% |
| Net Income Margin | -2.6% | -20.6% | -31.7% | -11.0% | -32.5% | -21.6% |
| CAPEX, % of revenue | | 4.3% | 1.9% | 0.1% | 6.3% | 6.2% |
|
|---|
| ROIC | -2.4% | -21.0% | -40.8% | -15.1% | -33.3% | -18.3% |
| ROE | -3.3% | -22.3% | -40.0% | -14.6% | -33.0% | -18.5% |
Peers in Retail
Below you can find Jintian Pharmaceutical Group Ltd benchmarking vs. other companies in Retail 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | -9.2% | -4.8% | 9.7% | -7.9% | - |
| Esprit Holdings Ltd ($330) | -8.4% | -10.4% | -3.1% | -16.3% | - |
| Bossini International Hldg ($592) | - | -12.9% | -3.1% | -24.0% | -26.6% |
| |
|---|
| Median (3 companies) | -3.7% | -4.8% | 3.3% | -16.3% | -26.6% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | - | -20.7% | -1.6% | -8.1% | -37.7% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Bossini International Hldg ($592) | 47.7% | 50.7% | 52.9% | 51.5% | 48.9% |
| Esprit Holdings Ltd ($330) | 50.2% | 51.6% | 51.3% | 50.3% | - |
| |
|---|
| Median (2 companies) | 43.2% | 49.8% | 51.3% | 50.9% | 48.9% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | 25.9% | 17.8% | 14.3% | 13.5% | 12.5% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | 15.7% | 15.9% | 10.8% | 12.0% | - |
| Bossini International Hldg ($592) | 5.6% | 2.9% | -1.1% | -6.0% | -9.3% |
| Esprit Holdings Ltd ($330) | -0.4% | 2.7% | -11.2% | -12.3% | - |
| |
|---|
| Median (3 companies) | 6.8% | 7.2% | 4.9% | -6.0% | -9.3% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | -0.7% | -19.3% | -31.7% | -10.6% | -30.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | 5.5% | 4.9% | 3.9% | 3.3% | - |
| Bossini International Hldg ($592) | 2.4% | 0.8% | 1.2% | 1.9% | 1.8% |
| Esprit Holdings Ltd ($330) | 1.5% | 1.6% | 2.0% | 1.3% | - |
| |
|---|
| Median (3 companies) | 2.1% | 1.8% | 1.7% | 1.9% | 1.8% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | - | 4.3% | 1.9% | 0.1% | 6.3% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | 3.3% | 3.6% | 1.9% | 2.5% | - |
| Bossini International Hldg ($592) | 7.8% | 1.5% | -5.6% | -14.7% | -45.9% |
| Esprit Holdings Ltd ($330) | -6.0% | -1.2% | -22.4% | -25.8% | - |
| |
|---|
| Median (3 companies) | 6.9% | 3.6% | -1.8% | -14.7% | -45.9% |
|---|
| Jintian Pharmaceutical Group Ltd ($2211) | -2.4% | -21.0% | -40.8% | -15.1% | -33.3% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| New World Department Store China Ltd ($825) | -0.3x | -0.4x | -0.1x | -0.3x | - |
| |
|---|
| Median (1 company) | -0.6x | -1.9x | -0.9x | -0.3x | - |
|---|
