Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 25.20, indicating a potential upside of 59.5% from the current price of HKD 15.80 [5]. Core Insights - The company has demonstrated strong performance with a revenue of RMB 1.569 billion in the first half of 2025, reflecting a year-on-year growth of 23.7%. Gross profit increased by approximately 27.6% to RMB 1.209 billion, with a gross margin of 77.1%, up 2.4 percentage points from the same period in 2024 [2]. - The core product, Uremic Clear Granules, continues to drive growth, achieving sales of approximately RMB 1.131 billion, a 28.0% increase compared to 2024. This product holds a leading position in the modern Chinese medicine category for kidney disease [3][4]. - The company has a robust dividend policy, proposing an interim dividend of HKD 0.33 per share, resulting in a payout ratio exceeding 51% [2]. Summary by Sections Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenues of RMB 2.590 billion, with a projected increase to RMB 3.477 billion in 2025, representing a growth rate of 17.2% [6]. - Net profit is expected to rise from RMB 784.5 million in 2023 to RMB 1.052 billion in 2025, with diluted earnings per share increasing from RMB 0.98 to RMB 1.23 during the same period [6]. Product and Market Position - Uremic Clear Granules is the company's flagship product, uniquely positioned in the market with a significant competitive advantage. It is the first kidney disease Chinese medicine to complete evidence-based medical research and has received strong recommendations in clinical guidelines [4]. - The company has expanded its product pipeline, with several new imaging contrast agents launched and ongoing research products awaiting approval, enhancing its market offerings [3]. Strategic Outlook - The company is focused on optimizing its operational structure and deepening strategic layouts, which is expected to sustain its growth trajectory. The kidney disease product segment is anticipated to maintain stable sales growth due to its unique market position and the absence of significant competing products [4][5].
康臣药业（01681）：科中药龙头，业绩稳健上涨，高派息高回购