Investment Rating - The report assigns a "Buy" rating for the company, with a target price corresponding to a PE ratio of 5.82 for 2024 [6]. Core Insights - The company is recognized for its strong dividend policy, with a cash balance of 3.58 billion RMB as of the end of 2023, and a dividend payout ratio reaching 42.68% [5][6]. - The company has established a robust product portfolio centered around nephrology, with a focus on the flagship product, Uremic Clear Granules, which has shown steady growth [3][21]. - The company is expected to maintain a stable upward trajectory in performance, with projected revenues of 2.9 billion, 3.27 billion, and 3.69 billion RMB for 2024, 2025, and 2026 respectively [5][16]. Company Overview - The company, 康臣药业 (Kangchen Pharmaceutical), has a market capitalization of 5.7 billion HKD and operates a diversified product line including nephrology, imaging, pediatrics, and more [2][3]. - The company has maintained a stable shareholding structure since its listing in 2013, with significant ownership held by its founder [13][14]. Financial Performance - The company reported a revenue of approximately 2.59 billion RMB in 2023, reflecting a year-on-year growth of 10.71% [16]. - The net profit attributable to the parent company for 2023 was approximately 784.53 million RMB, with a growth rate of 14.88% [16]. - The company has consistently achieved a compound annual growth rate (CAGR) of 15.09% in revenue and 15.07% in net profit over the past decade [16]. Product Analysis - The company has developed a "1+6" product strategy, with nephrology as the flagship area, and has a total of 138 products, including 62 traditional Chinese medicine and 76 Western medicine products [11][20]. - Uremic Clear Granules, the leading product in the nephrology segment, has maintained a market share of 11.8% and has shown a CAGR of 17% from 2010 to 2020 [21][22]. - The company is also focusing on the growth of its pediatric product, Oral Iron Dextran Solution, which has seen a significant increase in sales following changes in the reimbursement policy [4][21]. Future Outlook - The company is expected to continue its upward growth trajectory, with revenue projections of 2.9 billion, 3.27 billion, and 3.69 billion RMB for the years 2024, 2025, and 2026 respectively [5][16]. - The introduction of new products and the expansion of existing ones are anticipated to drive future growth, particularly in the nephrology and imaging segments [3][4].
康臣药业：高分红、业绩提速可期，被低估的肾科中成药龙头