Kanion Pharmaceutical(SH:600557) Zheng Quan Ri Bao Zhi Sheng·2025-12-29 10:36Core Insights - The article highlights the surge in demand for traditional Chinese medicine, particularly in the context of the ongoing H3N2 influenza outbreak in China, with a positive detection rate exceeding 30% and H3N2 subtype accounting for over 95% of cases [1][2] Industry Overview - The flu season has officially begun in China, with activity levels expected to peak between mid-December and early January [1] - The demand for flu medications has skyrocketed, with JD Health reporting a more than 13-fold year-on-year increase in sales of flu-related drugs since November [1] Company Performance - Kangyuan Pharmaceutical (600557.SH) is responding to the increased market demand by ramping up production of its products, including Jin Zhen Oral Liquid, which is expected to see a market demand rebound in Q4 [1][3] - The company has established a comprehensive product portfolio covering prevention, treatment, and rehabilitation, with key products like Heat Toxicity Ning Injection and Jin Zhen Oral Liquid effectively addressing core flu symptoms [2][3] - Oral liquid products have become the company's largest revenue source, generating 1.359 billion yuan in revenue in the first three quarters of 2025, accounting for 58% of total revenue, a significant increase from 20% in 2024 [2] Market Dynamics - The sales of traditional Chinese medicines such as Ganmao Ling Granules and Xiao Chai Hu Granules have seen over 100% month-on-month growth, indicating strong consumer preference [2] - The company is well-positioned to capitalize on the current market environment, which is seen as a critical opportunity for performance recovery, particularly with the ongoing flu season [3]