HUADONG MEDICINE(000963) 长江证券·2024-08-22 13:13Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a total revenue of 20.965 billion RMB for the first half of 2024, representing a year-on-year growth of 2.84%. The net profit attributable to shareholders reached 1.696 billion RMB, up 18.29% year-on-year [5] - The medical beauty segment is showing a steady increase in its contribution to the overall net profit of the company, with a total revenue of 1.348 billion RMB, reflecting a growth of 10.14% year-on-year [6] - The pharmaceutical business continues to demonstrate double-digit growth in profit, with the core subsidiary achieving a revenue of 6.698 billion RMB, a year-on-year increase of 10.63% [5][6] Summary by Sections Financial Performance - In H1 2024, the company achieved a total revenue of 20.965 billion RMB, with a net profit of 1.696 billion RMB, marking an 18.29% increase year-on-year. The net profit excluding non-recurring items was 1.625 billion RMB, up 13.85% [5] - For Q2 2024, the company reported a revenue of 10.554 billion RMB, a 2.76% increase year-on-year, and a net profit of 0.834 billion RMB, which is a 22.85% increase [5] Business Segments - Pharmaceutical Business: The pharmaceutical industrial segment maintained a strong growth trend, with a revenue of 6.698 billion RMB, up 10.63% year-on-year. The pharmaceutical commercial segment faced challenges but managed to achieve a revenue of 13.552 billion RMB, a slight decline of 0.58% [5] - Medical Beauty Business: The medical beauty segment's revenue reached 1.348 billion RMB, growing 10.14% year-on-year. The domestic medical beauty subsidiary reported a revenue of 0.618 billion RMB, reflecting a growth of 19.78% [6] Investment Recommendations - The company is expected to see continued growth in its medical beauty business, with ongoing clinical and registration work for several products. In the pharmaceutical sector, there is a rich pipeline of products in the endocrine field, with significant commercial value anticipated [6] - The projected EPS for 2024, 2025, and 2026 are 1.94 RMB, 2.26 RMB, and 2.57 RMB respectively, supporting the "Buy" rating [6]