中药2025年中报业绩综述暨四季度策略：药中银行拐点至

Core Insights - The Chinese medicine industry is expected to witness a performance turning point, with the sector likely to attract more investment due to its stable cash flow, high dividends, and low volatility in profit growth. The revenue and net profit growth rates for Q2 2025 improved compared to Q1 2025, and a further improvement is anticipated in H2 2025 due to reduced cost pressures from declining Chinese medicinal material prices [3][6]. Semi-Annual Report Overview - The semi-annual reports of Chinese medicine companies faced significant pressure, but nearly half of the companies (28 out of 60) achieved positive growth in net profit after excluding non-recurring items through proactive quality improvement and efficiency enhancement. Companies like Te Yi Pharmaceutical, Jia Ying Pharmaceutical, and Enwei Pharmaceutical reported double-digit growth in both revenue and net profit [10][11]. - Channel inventory has decreased, indicating a potential for sustained improvement in profitability. The index is steadily recovering, but institutional holdings remain light, with the dynamic price-to-earnings ratio at a low since 2021 [13][15][18]. Key Indicator Tracking - Flu data has stabilized, alleviating revenue growth pressures. The price index of Chinese medicinal materials has declined, which is expected to ease gross margin pressures [24][27]. - As of H1 2025, the average turnover days for accounts receivable and notes receivable are below 60 days, with companies like Xin Guang Pharmaceutical and Dong E E Jiao showing continuous improvement since 2020 [14]. Investment Recommendations - Recommended stocks include: - Core Holdings: Dong E E Jiao, Ling Rui Pharmaceutical, Yunnan Baiyao - Innovative Gems: Kang Yuan Pharmaceutical, Tian Shi Li - Long-term Value: Tong Ren Tang, Pian Zai Huang [6][31].