HWHG(600079) 申万宏源·2024-08-05 10:01Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company reported a revenue of 12.861 billion yuan for the first half of 2024, a year-on-year increase of 3.86%, while the net profit attributable to shareholders was 1.111 billion yuan, down 16.07% year-on-year [4]. - The second quarter of 2024 saw a revenue of 6.494 billion yuan, up 5.47% year-on-year, with a net profit of 625 million yuan, a decrease of 5.13% year-on-year [4]. - The company is actively pursuing a "core focus" strategy, which includes the sale of stakes in subsidiaries [4]. - The report highlights the resilience of the company's leading position and significant improvement in the performance of its subsidiary, Epic Pharma, which saw a revenue increase of 35% year-on-year [5]. Summary by Sections Market Data - Closing price: 20.10 yuan - One-year high/low: 27.36/15.68 yuan - Market capitalization: 30,891 million yuan - Dividend yield: 2.29% [1] Financial Data - As of June 30, 2024, the company had a net asset per share of 10.59 yuan and a debt-to-asset ratio of 44.54% [2]. - The total share capital is 1,632 million shares, with 1,537 million shares in circulation [2]. Performance Metrics - The company expects net profits of 2.306 billion, 2.640 billion, and 2.947 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 8.0%, 14.5%, and 11.6% [7]. - The gross profit margin is projected to improve from 46.8% in 2024 to 48.8% in 2026 [7]. Subsidiary Performance - Key subsidiaries showed varied performance, with Yichang Renfu achieving a revenue of 4.502 billion yuan, up 12% year-on-year, while Wuhan Renfu faced a revenue decline of 27% due to drug procurement policies [5].