Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 9.76, indicating a potential upside of 56.9% from the current price of HKD 6.22 [2][3]. Core Insights - The company experienced a revenue growth of 1.3% year-on-year in the first half of 2024, with total revenue reaching HKD 16.28 billion. The gross profit was HKD 11.65 billion, reflecting a gross margin of 71.6% [1][2]. - The report highlights that the company is facing short-term pressure on growth due to centralized procurement, but the approval of new products is expected to drive future growth [1][2]. - The report emphasizes the growth in the neurology segment, particularly with the approval of Mingfule for cerebral infarction, which is anticipated to boost sales significantly [1][2]. Financial Performance Summary - Revenue for the first half of 2024 was HKD 16.28 billion, with a gross profit of HKD 11.65 billion and a gross margin of 71.6% [1]. - The company reported a net profit attributable to shareholders of HKD 2.02 billion, with a net profit margin of 18.5% [1]. - The oncology segment saw a significant decline in revenue, down 10.2% to HKD 2.68 billion, primarily due to the impact of centralized procurement [2]. Segment Analysis - The report details revenue contributions from various segments: - The pharmaceutical segment generated HKD 13.55 billion (+4.8% YoY) - The vitamin C raw material segment saw a decline of 5.4% to HKD 0.98 billion - The antibiotic raw material segment decreased by 6.4% to HKD 0.87 billion - The functional food segment experienced a significant drop of 25.2% to HKD 0.88 billion [1][2]. - The neurology segment achieved a revenue of HKD 5.236 billion (+15.0% YoY), driven by the new product approvals [1][2]. Future Outlook - The report indicates that multiple new products are expected to be launched, which could help the company recover from the current sales decline caused by centralized procurement [2]. - The approval of PD-1 Enlansumab for second-line cervical cancer and other products is anticipated to enhance the company's growth trajectory in the coming years [2].
石药集团：集采致短期承压增速放缓，新产品陆续获批未来可期