Kanion Pharmaceutical(SH:600557) Guan Cha Zhe Wang·2025-11-18 09:22Core Viewpoint - The demand for antiviral and cough-relief medications is rising due to the seasonal increase in respiratory infections among children, with Kangyuan Pharmaceutical's Jin Zhen Oral Liquid emerging as a leading product in this market, driving the company's steady growth [1][5]. Financial Performance - In 2024, Kangyuan Pharmaceutical achieved a total revenue of 3.898 billion yuan, with Jin Zhen Oral Liquid contributing approximately 815 million yuan, accounting for over 20% of total revenue, and a year-on-year sales volume increase of 5.13% to 21.39 million units [1][5]. - For the first three quarters of 2025, the company reported total revenue of 2.343 billion yuan, with oral liquid products, led by Jin Zhen Oral Liquid, generating 1.359 billion yuan, representing a 58% share and becoming the core growth driver for the respiratory medication segment [1][5]. - The company's net profit attributable to shareholders reached 200 million yuan in the first three quarters, with a net operating cash flow of 346 million yuan, maintaining robust profitability during industry adjustments [2]. Product Efficacy and Market Position - Jin Zhen Oral Liquid demonstrates a comprehensive efficacy profile with antiviral, anti-inflammatory, and symptom-relieving properties, making it a preferred choice for treating respiratory infections in children [1][4]. - The product has shown a total effective rate of 97% in treating acute respiratory infections, and it significantly reduces recovery times for hand-foot-mouth disease and acute bronchitis compared to conventional treatments [4][5]. - The formulation is based on traditional Chinese medicine principles and has been clinically validated for its effectiveness in treating various respiratory conditions in children [3][4]. Competitive Advantage - Jin Zhen Oral Liquid has established a unique competitive edge through its differentiated positioning as a child-specific medication with optimized taste, achieving a 98% acceptance rate among children [6]. - The company has maintained a strong focus on research and development, with R&D expenditures consistently above 10% of sales revenue over the past three years, reaching 15.02% in the first three quarters of 2025 [6]. - The product has been included in national health insurance and essential drug lists, enhancing its market presence across multiple provinces [7].