Core Viewpoint - The report from China Merchants Securities International maintains a "Buy" rating for Kangchen Pharmaceutical (01681), raising the target price from HKD 13.9 to HKD 15.9, citing low valuation and attractive dividend yield [1] Financial Performance - Kangchen Pharmaceutical reported a year-on-year revenue increase of 23.7% and a net profit increase of 24.6%, both exceeding expectations [1] - The renal, pediatric, and contrast agent segments performed well, with sales growth of 28%, 17.5%, and 22% respectively [1] - The overall gross margin met expectations and showed an upward trend [1] Strategic Development - The company is leveraging the commercial success of Uremic Clear Granules (UCG) to build a comprehensive R&D platform in the nephrology field and develop integrated solutions for China's kidney disease management market [1] - The pipeline in the renal field is strong, helping the company establish a leading position in the specialty [1] Management Guidance - Management has raised the revenue growth guidance for this year to over 15% [1] - The report indicates that centralized procurement may slightly impact the contrast agent segment in the second half of the year, but the overall impact is manageable [1] - The expected gross margin for the year is projected to stabilize around 77%, with stable sales and management expense ratios [1]