MedSci Healthcare (2415) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 25.4% YoY to RMB260.6m and profit for the year declined 54.6% to RMB25.0m amid tighter compliance reviews, reduced client budgets and delayed projects.

• AI investment, a larger domestic client base and expanding clinical-research services support the strategy, while management expects project execution to normalize as compliance reviews conclude.

Financial highlights

• Revenue was RMB260.6m, down 25.4% YoY; gross profit was RMB162.2m, down 25.1%; cost of sales decreased 25.7% to RMB98.4m.

• Profit before tax was RMB25.5m versus RMB60.5m; profit attributable to owners was RMB25.0m versus RMB55.0m, down 54.6%.

• Other income and gains rose to RMB41.3m from RMB35.3m, including RMB23.4m of fair-value gains on financial assets at fair value through profit or loss.

• Basic and diluted EPS were RMB0.05 each; no final dividend was recommended.

Outlook and guidance

• Management expects precision omni-channel marketing revenue growth to resume gradually in 2025 as compliance reviews finish and project execution normalizes.

• 2025 priorities include expanding across Asia, supporting innovative-drug companies going overseas, and accelerating healthcare digital transformation through AI and evidence-led solutions.

• Plans include establishing a Southeast Asian headquarters in Singapore, focusing on Vietnam and providing end-to-end overseas expansion services to pharmaceutical clients.