Investment Rating - The report gives an "Accumulate" rating for the company [4]. Core Views - Kangchen Pharmaceutical has been deeply engaged in the nephrology sector for over 26 years, establishing itself as a leading enterprise in traditional Chinese medicine for kidney diseases. The company is expanding its product lines into pediatrics, imaging, orthopedics, dermatology, hepatobiliary, and digestive products [1][12]. - The core product, Uremic Clear Granules, has shown steady sales growth, while new products like Oral Iron Dextran Solution and Yishen Huashi Granules are emerging as new growth drivers. The company has a robust pipeline with three products expected to launch this year and five more submitted for registration [2][20]. - The company emphasizes shareholder returns, with an average dividend payout ratio exceeding 30%. In 2023, the dividend payout ratio and yield reached 42% and 9%, respectively, placing it among the top in the pharmaceutical sector [2][18]. Summary by Sections Company Overview - Kangchen Pharmaceutical has been a leader in the nephrology market in China, with a focus on modern traditional Chinese medicine. The company was listed on the Hong Kong Stock Exchange in 2013 and has subsidiaries including Guangzhou Kangchen Pharmaceutical Co., Ltd. and Guangxi Yulin Pharmaceutical Group [12][13]. Financial Performance - Revenue increased from 1.73 billion in 2019 to 2.59 billion in 2023, with a CAGR of 10.6%. Net profit rose from 80 million to 785 million during the same period, with a CAGR of 77.1% [15]. - The company's gross margin and net margin for 2023 were 74.2% and 30.3%, respectively. The nephrology segment accounts for 67.2% of total revenue [15][16]. Product Pipeline - The company employs a "1+6" model to build its product cluster, with 67 products included in the 2023 National Medical Insurance Directory. The nephrology segment's Uremic Clear Granules is the top product, generating annual sales of 1.6 billion [20][21]. - The pipeline includes 14 products, with 6 innovative drugs and 8 generic drugs. Key products expected to be approved in 2024 include Iodixanol Injection and Iopamidol Injection [25][26]. Investment Recommendations - Revenue projections for 2024-2026 are 2.85 billion, 3.16 billion, and 3.54 billion, with corresponding growth rates of 10.0%, 10.9%, and 11.8%. Net profit estimates are 889 million, 1.01 billion, and 1.14 billion, with growth rates of 13.4%, 13.6%, and 12.9% [28].
康臣药业：“高股息+稳增长”的肾科中成药领先企业