HISUN(SH:600267) Jin Rong Jie·2025-03-28 14:45Core Viewpoint - Haizheng Pharmaceutical reported a revenue decline of 5.65% in 2024, while achieving a net profit of 601 million yuan, indicating a mixed performance with concerns over market competitiveness [1][4][5]. Revenue Decline: Core Business Struggles - The company's revenue for 2024 was 9.787 billion yuan, marking a second consecutive year of decline, highlighting weak growth in core business areas despite efforts in traditional pharmaceutical sectors [4]. - In the pharmaceutical formulation sector, Haizheng ranked 26th among Chinese pharmaceutical companies according to IQVIA, but this did not translate into significant revenue growth [4]. - The e-commerce segment saw substantial growth in key products like Yisuo Jia and Mei Man, yet overall contributions to revenue remained limited [4]. - New product launches in the export formulation business had minimal impact on overall revenue due to small initial profit margins [4]. Net Profit Growth: Reliance on Non-Recurring Gains - The net profit of 601 million yuan represented a turnaround from losses, with a non-recurring profit of 423 million yuan indicating reliance on short-term measures rather than sustainable growth [5][6]. - Profit growth was attributed to improved resource allocation and management efficiency, but these effects are more short-term in nature [5]. Emerging Business: Slow Development, Untapped Potential - Haizheng's expansion into emerging sectors like health, medical aesthetics, and synthetic biology has been slow, with limited immediate revenue impact [7]. - The company has developed over ten products in areas such as orthopedic calcium supplements and liver protection, but their market performance remains to be validated [7]. - In the medical aesthetics sector, while strategic planning is in place, only two products have been initiated, and twelve are in preliminary research, indicating a need for time to assess market viability [7].