Core Viewpoint - The domestic pharmaceutical sector is experiencing a significant downturn in 2024 due to external uncertainties, with traditional Chinese medicine (TCM) showing resilience and positive annualized returns amidst the challenges faced by other segments like hospitals and medical R&D outsourcing [1][3]. Industry Summary - The TCM sector has recorded a nearly 4-year positive return, demonstrating its defensive attributes and growth potential during adverse market conditions [1]. - Recent policies have been favorable for TCM, with multiple top-level design documents issued to promote its development, including the "14th Five-Year Plan for TCM Development" and guidelines for enhancing TCM quality [2]. - Analysts predict that the TCM sector may see a performance turning point by Q2 2025, with market activity potentially starting before this inflection point [3]. Company Summary - Kangchen Pharmaceutical (01681) is positioned to excel in the industry due to its differentiated product offerings and innovative pipeline, particularly in chronic disease management [4]. - In 2024, Kangchen achieved a revenue of 2.967 billion RMB, a year-on-year increase of 14.6%, with a gross profit of 2.242 billion RMB and a net profit of approximately 910 million RMB, reflecting a growth of 16.1% [5]. - The company has a return on equity (ROE) of 23.57%, significantly higher than the average for both Hong Kong and A-share pharmaceutical companies [6]. - Kangchen's revenue structure is diversifying, with its nephrology segment generating approximately 1.996 billion RMB, a 14.6% increase year-on-year, and its pediatric products reaching 361 million RMB, a growth of 23.1% [10][12]. - The company is actively expanding its product lines in nephrology and imaging, with significant growth in its bone injury medications, which saw a 64.9% increase in revenue [11]. Financial Performance - Kangchen's financial metrics indicate strong performance, with a gross margin of 75.6% and a net profit margin of 30.92% [6]. - The company has increased its dividend payout ratio to 51.1% for 2024, reflecting its commitment to returning value to shareholders [5]. - Despite the broader market challenges, Kangchen's stock price has surged by 110.59% in 2024, indicating strong market confidence in its business model and growth prospects [16].
康臣药业(01681)年报观： 基本面坚如磐石，创新转型加速内在价值重估