HANGZHOU TIGERMED CONSULTING (300347) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥3.36 billion, down 9.5% year-over-year; net profit attributable to shareholders was ¥492.85 million, down 64.5% year-over-year, mainly due to non-recurring items and market headwinds.

• Adjusted net profit (excluding non-recurring items) was ¥640.33 million, down 19.3% year-over-year.

• Cash flow from operations was ¥177.33 million, a 52.7% decrease year-over-year.

• The company remains a leading CRO in China with a 12.8% domestic market share and 1.4% global share in 2023.

Financial highlights

• Gross margin remained stable at 39.13% (vs. 39.72% last year).

• Main business income was ¥3.30 billion, down 10.21% year-over-year.

• Clinical trial technical services revenue fell 22.17% year-over-year; related and lab services revenue grew 5.84%.

• Net assets attributable to shareholders at period end: ¥20.77 billion.

• Total assets: ¥30.42 billion, up 2.48% from year-end 2023.

• Basic and diluted EPS: ¥0.57, down 64.6% year-over-year.

Outlook and guidance

• Domestic clinical trial demand stabilized in Q2 2024, with a positive trend expected to continue.

• Overseas clinical operations, especially in North America, are expected to drive future growth.

• The company will continue to expand global operations and invest in business development, especially in the US and Europe.