Investment Rating - The investment rating for the company is "Buy" with a target price of 5.9 HKD, while the current price is 5.66 HKD [4]. Core Insights - The company has demonstrated stable growth with a revenue increase of 13.3% and a net profit increase of 14.9% in H1 2024, driven primarily by the pediatric and imaging segments [1][2]. - The company has a strong commitment to shareholder returns, having distributed over 2.4 billion HKD in dividends, with a consistent payout ratio exceeding 30% [2][5]. Financial Performance Summary - In H1 2024, the company achieved revenues of 1.27 billion HKD and a net profit of 400 million HKD, with a gross margin of 74.7% and a net margin of 31.5% [1]. - The revenue breakdown by segment for H1 2024 is as follows: - Nephrology: 880 million HKD (+11.1%) - Pediatrics: 150 million HKD (+28.7%) - Imaging: 80 million HKD (+21.1%) [1]. - The company expects revenues of 2.85 billion HKD, 3.16 billion HKD, and 3.54 billion HKD for 2024, 2025, and 2026, respectively, with corresponding growth rates of 10.0%, 10.9%, and 11.8% [2][3]. Profitability Metrics - The projected net profit for 2024, 2025, and 2026 is 889 million HKD, 1.01 billion HKD, and 1.14 billion HKD, with growth rates of 13.4%, 13.6%, and 12.9% [3][8]. - The company maintains a gross margin of approximately 73.4% to 73.5% and a net margin projected to improve from 31.3% in 2024 to 32.4% in 2026 [3][8]. Shareholder Returns - The interim dividend declared for H1 2024 is 0.3 HKD per share, doubling from 0.15 HKD per share in H1 2023, alongside a special dividend of 0.3 HKD per share to celebrate the company's 10th anniversary [2][5].
康臣药业：利润端增速亮眼，高分红回报股东