SSY Group (2005) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was HK$5,773 million, down 10.7% year-over-year, with net profit at HK$1,061 million, down 19.5% year-over-year.

• Gross profit margin declined to 50.4% from 56.0%, mainly due to lower average selling prices and higher centralized procurement sales.

• Dividend per share increased to HK$0.175, with a payout ratio of 48.8%, up 2.9% year-over-year.

• Major shareholder increased holdings by 35.04 million shares; 11.83 million shares were repurchased and mostly cancelled by year-end.

Financial highlights

• EBITDA was HK$1,811 million, down 12.3% year-over-year; EBITDA margin at 31.4%.

• Operating profit was HK$1,343.5 million, down 18.0% year-over-year.

• Cash and cash equivalents stood at HK$1,258 million, with bank borrowings at HK$3,636 million.

• Gearing ratio rose to 24.8%; current ratio improved to 2.78.

• Return on equity dropped to 14.7% from 18.1%.

Outlook and guidance

• Plans to expand market share in top-tier hospitals and community medical institutions for infusion products.

• Targeting 6% sales volume growth in infusion solutions for 2025, aiming for 2.15 billion bottles (bags).

• Bulk pharmaceuticals business expects 20% revenue growth in 2025, focusing on high-value-added products and export expansion.

• R&D to accelerate innovative and specialty generics, leveraging AI and industry-academia collaboration.

• Plans to obtain 98 national approvals in 2025, including 33 for liquid and 26 for solid preparations.