Vita Life Sciences Limited (VSC)
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Essentials
Vita Life Sciences Limited (VSC) is a pharmaceutical and healthcare company, with principal activities involved in formulating, packaging, sales and distribution of vitamins and supplements and investment. VSC has contract manufacturers in Australia, the US and New Zealand to produce the various products in bulk form. The products are shipped to VitaHealth’s packaging facilities in either Sydney, Singapore or Malaysia.
VSC's health brands tell its story - 'Herbs of Gold', 'VitaLife', 'VitaScience' and 'VitaHealth'. A long-established pharmaceutical and healthcare over-the-counter' business, it contract manufactures in Australia a wide range of supplements, vitamins, minerals, meal replacement, sports nutrition and herbal care products. 'Herbs of Gold' is sold in Australia and the other brands sold in Asia, particularly Singpore and Malaysia, also Thailand. To business units in these countries are being added in China, Vietnam and Indonesia.
Following major change after an at times torrid history, the last few years have shown a strong and well executed and controlled growth strategy. Revenues, profits and dividends are rising well as VSC products, brand awareness, loyalty and premium positioning match demand across Asia for reliable health supplements. In the new business units the 1H13 sales growth rose 35% in Thailand, 51% in China, and 537% in Vietnam where the first sales were in 2012. Australia still represented 40% of sales in 1H13, where growth is in single digits.
With no debt, cash of $7.6m represented 53% of net assets at 30 June 2013. Intangible assets are negligible.
Double digit revenue growth is expected with sound EBIT margins around 15%.
Half-yearly Performance & Estimates - VSC
| Year-end Dec | 1H11A | FY11A | 1H12A | FY12A | 1H13A | FY13E | FY14E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 11.4 | 24.3 | 14.4 | 30.2 | 17.1 | ||
| EBITDA, $m | 0.48 | 1.6 | 1.1 | 3.0 | 2.5 | ||
| EBIT, $m | 0.48 | 1.5 | 1.1 | 2.9 | 2.5 | ||
| Report NPAT, $m | 0.37 | 1.2 | 0.99 | 2.4 | 2.2 | ||
| Adj. NPAT, $m | 2.2 | ||||||
| Reported EPS, ¢ | 1.00 | 2.00 | 2.00 | 4.00 | 4.00 | ||
| Adjusted EPS, ¢ | 4.00 | ||||||
| EPS %FY/Growth | 100% | 100% | 100% | 100% | |||
| Dividend, ¢ | 0 | 0 | 0.50 | 0 | 1.00 | ||
| Franking, % | - | - | 100% | - | 41% | ||
| EBITDA Margin | 0 | 7% | 8% | 10% | 15% | ||
| NPAT Margin | 0 | 5% | 7% | 8% | 13% | ||
| ROE, % | 0 | 14% | 9% | 21 | 15% | ||
| EBIT/Interest | 0.0 | 17.3 | 86.8 | 119.38 | 635.5 | ||
| Net Debt / Equity | 0 | -0.41 | -0.48 | -0.44 | -0.53 | ||
| CashFlow/Sh, ¢ | 8.4 | 10.8 | 1.7 | 2.6 | 4.5 | ||
| Y/E Shares, m | 58.3 | 57.9 | 57.7 | 56.5 | 56.4 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Wave Chart
Profile
Vita Life Sciences
Rating:
Category: Spec Stock ; Midcaps
Action:
Website: www.vitalifesciences.com.au
| ASX code: | VSC |
| Closing Price, 30/12/2013: | $ 1.585 |
| Market Capitalisation: | $ 89 million |
| 52 Week High: | $ 1.89 |
| 52 Week Low: | $ 0.60 |
| Sector: | Pharmaceuticals & Biotechnology |
| Index: | S&P/ASX Index |
Summary of Fundamentals
| Year-end December | FY11A | FY12A | FY13E | FY14E |
|---|---|---|---|---|
| NPAT, $m | 1.2 | 2.3 | 0.0 | 4.4 |
| Reported EPS, ¢ | 2.00 | 4.00 | ||
| Adjusted EPS, ¢ | 4.00 | 0.00 | 7.90 | |
| EPS Growth, % | -75% | 100% | -100% | **********% |
| P/E Ratio, x | 79.25 | 39.63 | 20.06 | |
| Dividend, ¢ | 0.50 | 1.00 | 0.00 | 2.60 |
| Franking, % | 100% | 100% | 100% | 100% |
| Div. Yield, % | 0.32 | 0.63 | 0.00 | 1.64 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 30 December 2013
Other Highlights
| Sector: | Pharmaceuticals & Biotechnology |
| Return on Equity, FY12 : | 21% |
| Net Debt to Equity, FY12 : | -44 % |
| EBIT / Interest Cover, FY12 : | 119.38 x |
| Gicscode: | 35200000 |
| First Listed: | 23-Aug-07 |
Business Activities
Vita Life Sciences Limited (VSC) is a pharmceutical and healthcare distributor of its Australian contract manufactured ranges of over-the-counter products, across Australia, Malaysia, Singapore, Thailand and other Asian countries.
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |