Core Viewpoint - The company demonstrates resilience in a challenging OTC market, with a focus on growth in health consumer products and prescription drugs, while maintaining strong profitability and cash flow [1][2][3]. Group 1: Company Performance - In the first half of 2025, the company reported revenues of 2.14 billion yuan, a decrease of 6% year-on-year, while net profit attributable to shareholders increased by 6% to 520 million yuan [1]. - The second quarter of 2025 saw revenues of 960 million yuan, down 4% year-on-year, but net profit attributable to shareholders rose by 6% to 240 million yuan [1]. - The decline in revenue is primarily attributed to changes in OTC demand, but the company has optimized costs and expenses, leading to improved profitability [1]. Group 2: Industry Context - The pharmaceutical manufacturing industry in China faced a 1.2% decline in revenue and a 2.8% drop in profit in the first half of 2025 [2]. - OTC revenue for the company fell by 10% year-on-year to 1.55 billion yuan, while health consumer products grew by 17% to 230 million yuan, and prescription drug revenue increased by 7% to 360 million yuan [2]. Group 3: Profitability and Cash Flow - The gross margin for the first half of 2025 was 66.6%, a decrease of 2.4 percentage points year-on-year, mainly due to a lower proportion of high-margin OTC business [3]. - The company maintained a weighted average return on equity of 12.89%, an increase of 1.02 percentage points year-on-year, indicating sustained improvement in profitability [3]. - Operating cash flow net amount was 650 million yuan, while investment cash flow net amount was -330 million yuan, reflecting stable cash flow management [3]. Group 4: Dividend Policy - The company plans to distribute a cash dividend of 0.5 yuan per share, representing 60.78% of the net profit attributable to shareholders for the first half of 2025 [4]. - The company emphasizes high shareholder returns, maintaining a policy of two cash dividend distributions annually during the 14th Five-Year Plan period [4]. Group 5: Investment Outlook - The company maintains a profit forecast, expecting net profits attributable to shareholders of 897 million yuan, 1.015 billion yuan, and 1.145 billion yuan for 2025-2027, representing year-on-year growth of 14%, 13%, and 13% respectively [5]. - A target price of 29.96 yuan is set based on a 21x PE ratio for 2025, maintaining a "buy" rating [5].

Core Viewpoint - Jiangzhong Pharmaceutical (600750) reported a mixed performance in its 2025 mid-year financial results, with a net profit increase of 5.8% despite a decline in total revenue by 5.79% compared to the previous year [1] Financial Performance Summary - Total revenue for the first half of 2025 was 2.141 billion yuan, down 5.79% from 2.273 billion yuan in 2024 [1] - Net profit attributable to shareholders reached 522 million yuan, up 5.8% from 494 million yuan in the previous year [1] - The gross profit margin was 66.6%, a decrease of 0.64% year-on-year, while the net profit margin improved to 26.13%, an increase of 11.42% [1] - Total operating expenses (sales, management, and financial expenses) amounted to 694 million yuan, accounting for 32.42% of revenue, down 11.97% year-on-year [1] - Earnings per share (EPS) increased to 0.82 yuan, up 3.8% from 0.79 yuan [1] Cash Flow and Asset Changes - Operating cash flow per share improved by 27.88% to 1.03 yuan [1] - Cash and cash equivalents increased by 33.53% to 1.529 billion yuan, attributed to an increase in large bank deposits maturing within one year [1][2] - Trade receivables rose significantly by 79.86% to 500 million yuan [1] - The company saw a dramatic increase in interest-bearing liabilities, up 15,389.60% to 158 million yuan [1] Investment and Financial Strategy - The company has increased its investment in financial products, leading to a 1399.59% rise in trading financial assets [2] - The construction in progress increased by 42.67%, indicating ongoing investment in the Jinjiang Industrial Park project [2] - The company reported a significant increase in other income by 131.95%, primarily due to government subsidies received [4] Market Position and Future Outlook - Analysts project that Jiangzhong Pharmaceutical's performance for 2025 will reach 897 million yuan, with an average EPS forecast of 1.41 yuan [5] - The company has a strong return on invested capital (ROIC) of 17.24%, indicating robust capital efficiency [4] Fund Holdings - The largest fund holding Jiangzhong Pharmaceutical is the GF Stable Growth Mixed Fund, with 15 million shares held [6] - The fund's recent performance shows a net asset value increase of 9.19% over the past year [6]

Core Insights - Jiangzhong Pharmaceutical reported an increase in shareholder accounts to 39,013 as of June 30, 2025, reflecting a growth of 446 accounts or 1.16% compared to March 31, 2025 [1][2] - The average market value per shareholder for Jiangzhong Pharmaceutical is 355,300 yuan, which is above the industry average of 236,000 yuan [1][2] - The stock price of Jiangzhong Pharmaceutical saw a slight increase of 0.09% from March 31, 2025, to June 30, 2025, during which the number of shareholders increased [1][2] Shareholder Statistics - As of June 30, 2025, Jiangzhong Pharmaceutical had 39,013 shareholders, an increase of 446 accounts or 1.16% from the previous quarter [2] - The average number of shares held per shareholder remained stable at 16,300 shares [2] - The average market value per shareholder decreased slightly from 367,000 yuan on March 31, 2025, to 355,300 yuan on June 30, 2025 [2] Stock Performance - From March 31, 2025, to June 30, 2025, Jiangzhong Pharmaceutical's stock price increased by 0.09% [1][2] - During the same period, the net inflow of funds from major investors was 33.37 million yuan, while retail investors contributed a net inflow of 21.22 million yuan [2] - In contrast, speculative funds experienced a net outflow of 54.59 million yuan [2]

Investment Rating - The report maintains a rating of "Add" for Jiangzhong Pharmaceutical [4] Core Views - The company demonstrates strong resilience in performance, with its health business stabilizing and recovering after restructuring [2] - Jiangzhong Pharmaceutical continues its tradition of high dividends, highlighting its long-term investment value [3] - The company is focused on expanding its product categories and enhancing channel strength, which is expected to drive revenue growth [3] Financial Summary - For 2023A, the company reported revenue of 4,553 million yuan, with a year-on-year growth rate of 17.2%. The projected revenue for 2025E is 4,287 million yuan, reflecting a decline of 3.4% [1] - The net profit attributable to the parent company for 2023A is 719 million yuan, with a year-on-year growth rate of 20.1%. The projected net profit for 2025E is 868 million yuan, indicating a growth of 10.2% [1] - The company plans to distribute a cash dividend of 0.50 yuan per share, which accounts for 60.78% of the net profit for the first half of 2025 [3] Strategic Positioning - Jiangzhong Pharmaceutical's strategy includes strengthening its OTC business, developing health consumer products, and expanding its prescription drug offerings [2] - The company aims to enhance its product matrix through brand integration and digital marketing, while also exploring high-quality resource integration and business development partnerships [2] - The company has a talent incentive mechanism in place, with over 50% of its research personnel benefiting from equity incentives, which is expected to stimulate innovation [2]

Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Views - The company demonstrated resilience in operations despite industry pressures, with a focus on health consumer products and prescription drugs showing growth [2]. - The company is positioned as a leading player in the OTC market for gastrointestinal products in China, with expectations for steady growth through both organic and external means [1]. - The company has implemented cost optimization strategies that have led to improved profitability and stable cash flow [3]. Summary by Sections Financial Performance - For the first half of 2025, the company reported revenues of 2.14 billion RMB, a decrease of 6% year-on-year, while net profit attributable to shareholders was 520 million RMB, an increase of 6% year-on-year [1]. - The second quarter of 2025 saw revenues of 960 million RMB, a decline of 4% year-on-year, but net profit attributable to shareholders increased by 6% to 240 million RMB [1]. - The gross margin for the first half of 2025 was 66.6%, down 2.4 percentage points year-on-year, primarily due to a decrease in the proportion of high-margin OTC business [3]. Business Segments - The OTC segment faced challenges with revenues of 1.55 billion RMB, down 10% year-on-year, while health consumer products grew by 17% to 230 million RMB, and prescription drugs increased by 7% to 360 million RMB [2]. - The company has strengthened its online marketing channels and brand building, which contributed to the growth in health consumer products [2]. Dividend Policy - The company announced a cash dividend of 0.5 RMB per share for the first half of 2025, representing 60.78% of the net profit attributable to shareholders [1][4]. - The company plans to maintain a high dividend payout ratio during the 14th Five-Year Plan period, emphasizing its commitment to shareholder returns [4]. Future Outlook - The company forecasts net profits attributable to shareholders of 897 million RMB, 1.015 billion RMB, and 1.145 billion RMB for 2025, 2026, and 2027, respectively, reflecting growth rates of 14%, 13%, and 13% year-on-year [5]. - The target price for the company's stock is set at 29.96 RMB, based on a 21x PE ratio for 2025 [5].

Investment Rating - The investment rating for Jiangzhong Pharmaceutical is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 2.141 billion yuan in H1 2025, a year-on-year decrease of 5.79%, while the net profit attributable to shareholders was 522 million yuan, an increase of 5.80% [4] - The gross margin for H1 2025 was 66.60%, down by 2.44 percentage points, and the net margin was 26.13%, up by 1.99 percentage points [4] - The company is optimistic about its long-term development potential in the gastrointestinal and related medication sectors, maintaining profit forecasts for 2025-2027 with net profits expected to be 891 million, 1.008 billion, and 1.131 billion yuan respectively [4] Financial Performance Summary - In H1 2025, the non-prescription drug business revenue was 1.550 billion yuan, down 10.14%, while the prescription drug business revenue was 360 million yuan, up 7.44% [5] - The company is focusing on digital transformation to enhance efficiency and is actively pursuing mergers and acquisitions to expand its product matrix [6] - The financial summary indicates that the company expects revenue growth of 8.7% in 2025, with a projected net profit growth of 13.0% [8]

Summary of Key Points Core Viewpoint - Jiangzhong Pharmaceutical announced a semi-annual distribution plan for 2025, proposing a cash dividend of 5 yuan per 10 shares, totaling 317 million yuan, which represents 60.78% of its net profit for the period. The dividend yield is calculated at 2.22% based on the average trading price for the period [2]. Distribution History - The company has a history of dividend distributions since its listing, with the latest proposal marking the 30th distribution. The cash distribution amounts and dividend yields have varied over the years, with notable distributions including: - 2024.12.31: 10派7元, 444 million yuan, 3.04% yield - 2023.12.31: 10派7元, 441 million yuan, 3.48% yield - 2022.12.31: 10派6.5元, 409 million yuan, 4.51% yield [1][2]. Financial Performance - For the first half of 2025, Jiangzhong Pharmaceutical reported operating revenue of 2.141 billion yuan, a year-on-year decrease of 5.79%. However, net profit increased by 5.80% to 522 million yuan, with basic earnings per share at 0.82 yuan [3]. Market Activity - The stock experienced a net outflow of 2.931 million yuan in principal funds on the day of the announcement, with a total net outflow of 27.178 million yuan over the past five days [4]. - The latest margin financing balance for the stock is 244 million yuan, reflecting a decrease of 4.394 million yuan over the past five days, a decline of 1.77% [5]. Industry Comparison - In the pharmaceutical and biotechnology sector, Jiangzhong Pharmaceutical's cash distribution of 317.5 million yuan ranks it among the top companies, with WuXi AppTec leading at 1 billion yuan, followed by China Resources Sanjiu and Baiyunshan at 751 million yuan and 650 million yuan, respectively [5].

Core Viewpoint - Jiangzhong Pharmaceutical announced the reappointment of KPMG Huazhen LLP as the auditing firm for the fiscal year 2025 [2] Group 1 - The company intends to continue its relationship with KPMG Huazhen LLP for auditing services [2]

（文章来源：证券日报） 证券日报网讯 8月21日晚间，江中药业发布公告称，2025年半年度公司实现营业收入2，141，118， 142.51元，同比下降5.79%；归属于上市公司股东的净利润为522，337，503.28元，同比增长5.80%。 ...

（文章来源：证券日报） 证券日报网讯 8月21日晚间，江中药业发布公告称，公司第十届监事会第七次会议审议通过了《关于续 聘2025年度审计机构的议案》等多项议案。 ...