Grand Pharmaceutical Group (512) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was HK$6,047.24 million, up 1.0% year-over-year; normalized profit attributable to owners rose 35.1% to HK$1,081.31 million, and profit attributable to owners increased 51.4% to HK$1,557.95 million.

• Significant growth in nuclear medicine anti-tumor and cerebro-cardiovascular precision interventional diagnosis and treatment technology, with revenue up 140.8% year-over-year to HK$342.75 million.

• Completed acquisitions of Baiji Pharmaceutical, Duoputai Pharmaceutical Technology, and Tianjin Tanabe, expanding product portfolios in respiratory, ENT, and cerebro-cardiovascular segments.

• Added six new commercialized products and advanced multiple innovative drugs and devices through clinical and regulatory milestones.

• Continued investment in R&D, with HK$1,480 million allocated to research, development, and innovative projects.

Financial highlights

• Revenue: HK$6,047.24 million (up 1.0% year-over-year; up 5.4% excluding FX impact).

• Normalized profit attributable to owners: HK$1,081.31 million (up 35.1% year-over-year; up 41.0% excluding FX impact).

• Profit attributable to owners: HK$1,557.95 million (up 51.4% year-over-year; up 58.0% excluding FX impact).

• Earnings per share: 44.41 HK cents (vs. 29.12 HK cents in 1H2023).

• Gross profit: HK$3,591.31 million (down from HK$3,868.44 million in 1H2023).

• Distribution and administrative expenses decreased to HK$1,611.95 million and HK$606.20 million, respectively, due to improved sales efficiency and cost control.

• Finance costs reduced to HK$86.12 million (from HK$113.23 million in 1H2023).

• R&D and project investment: HK$1,480 million.

• No interim dividend declared for the six months ended 30 June 2024.

Outlook and guidance

• Focus on expanding innovative product pipeline and accelerating commercialization of new drugs and devices.

• Continued investment in R&D and global expansion, with emphasis on nuclear medicine, precision interventional technology, and chronic disease management.

• Integration of recent acquisitions to drive growth in key therapeutic areas.

• Strategic acquisitions and new product launches expected to drive future growth.