Huadong Medicine Co (000963) Q3 2024 earnings summary

Executive summary

• Achieved operating revenue of ¥31.48 billion for Jan–Sep 2024, up 3.56% year-over-year; net profit attributable to shareholders reached ¥2.56 billion, up 17.05% year-over-year.

• Q3 2024 revenue was ¥10.51 billion, up 5.03% year-over-year; net profit attributable to shareholders was ¥866 million, up 14.71% year-over-year.

• Pharmaceutical industry segment revenue grew 10.53% year-over-year to ¥9.94 billion for Jan–Sep; net profit up 14.49% to ¥2.14 billion.

• Aesthetic medicine segment revenue rose 1.90% to ¥1.91 billion; Sinclair (Shanghai) revenue up 10.31% to ¥909 million, while UK-based Sinclair revenue fell 20.30% to ¥776 million.

• Industrial microbiology segment revenue surged 30.17% to ¥443 million, driven by overseas market expansion.

Financial highlights

• Net profit attributable to shareholders for Q3: ¥866 million, up 14.71% year-over-year; for Jan–Sep: ¥2.56 billion, up 17.05%.

• Net cash flow from operating activities for Jan–Sep: ¥2.51 billion, up 11.43% year-over-year.

• Basic EPS for Jan–Sep: ¥1.4644, up 17.06% year-over-year.

• Total assets at Sep 30, 2024: ¥37.50 billion, up from ¥33.51 billion at end-2023.

• Owners’ equity attributable to shareholders: ¥22.04 billion, up from ¥21.05 billion at end-2023.

Outlook and guidance

• Plans to intensify global integration and expand registration and market share of core aesthetic medicine products.

• Industrial microbiology segment expected to maintain rapid growth with continued overseas expansion.

• Ongoing enrichment of product portfolio and launch of high-end aesthetic medicine products in domestic and international markets.