The United Laboratories International (3933) H1 2024 earnings summary

Executive summary

• Revenue for 1H2024 rose 3.9% year-over-year to RMB7,175.8 million, with EBITDA up 14.2% to RMB2,231.9 million and profit attributable to owners up 16.1% to RMB1,491.4 million.

• Basic EPS increased 16.1% to RMB82.08 cents; interim dividend per share rose 33.3% to RMB16.0 cents, with a payout ratio of 19.5%.

• All business segments showed strong sales, with notable growth in intermediate and bulk medicine, while finished products saw a slight decline.

• R&D investment and new product development remain priorities, with several clinical milestones achieved and new production facilities underway.

• The Board declared an interim dividend of RMB16 cents per share, a 33.3% increase year-over-year.

Financial highlights

• Net cash from operating activities reached RMB1,845.6 million, up from RMB1,197.5 million in 1H2023.

• Cash and cash equivalents increased to RMB6,554.8 million as of June 30, 2024.

• Current ratio remained strong at 2.04 as of June 30, 2024; net cash and bank balances after borrowings and supplier finance reached RMB3,265.1 million.

• Total assets reached RMB22,826.1 million; total liabilities RMB9,252.2 million.

• Finance costs decreased 35% year-over-year to RMB25.2 million.

Outlook and guidance

• Plans to increase R&D investment, accelerate new drug development, and expand animal healthcare capacity.

• Focus on core therapeutic fields, business diversification, and global market expansion.

• The company expects to benefit from ongoing healthcare reforms and centralized drug procurement in China, aiming to consolidate its industry position and pursue sustainable growth.

• Financial strategy emphasizes maintaining liquidity, controlling finance costs, and seeking low-cost borrowings.

• Confident in consolidating and expanding its position in the pharmaceutical industry.