Sino Biopharmaceutical (1177) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 11.1% year-over-year to RMB15.87 billion, driven by strong growth in innovative and new products.

• Profit attributable to owners surged 139.7% to RMB3.02 billion, mainly due to gains from disposal of subsidiaries under discontinued operations.

• Adjusted non-HKFRS profit attributable to owners increased 14.0% to RMB1.54 billion, reflecting core operational strength.

• Four innovative products and 11 generics launched in 2024H1, strengthening the portfolio in key therapeutic areas.

• Interim dividend of HK3 cents per share declared for H1 2024.

Financial highlights

• Gross profit from continuing operations rose to RMB13.03 billion, with gross margin stable at 81.8%.

• Revenue from innovative products increased 14.8% to RMB6.13 billion; generics revenue up 9.0% to RMB9.74 billion.

• Basic earnings per share (adjusted non-HKFRS) rose 15.0% to RMB8.34 cents.

• Cash and bank balances at period end totaled RMB8.55 billion, with total fund reserves of RMB22.34 billion.

• Gearing ratio improved to 36.9% from 40.0% at year-end 2023.

Outlook and guidance

• Expects to launch 25 innovative products by 2026, strengthening its position in four main therapeutic areas.

• Strategic partnership with Boehringer Ingelheim to bring innovative cancer therapies to China.

• Focus remains on innovation, globalization, and digitalization to drive long-term growth.

• Pipeline includes multiple blockbusters expected to launch in 2025, such as D-1553 (KRAS G12C inhibitor) and TQB3616 (CDK2/4/6 inhibitor).

• Aims for global top 30 ranking in the next 10 years, leveraging strong R&D and product launches.