The integrated pharmaceutical companies of raw materials and preparations, represented by Huahai Pharmaceuticals and Sinopharm Hyundai, achieved high growth in the first three quarters of 2024, which mainly benefited from the recovery of the business climate of raw materials, as well as the continuous reduction of cost efficiency, management and preparation integration dividends.

With the advent of the three quarterly report disclosure season, a number of pharmaceutical listed companies took the lead in releasing performance forecasts. Among them, the integration of raw materials and preparations in the field of Huahai Pharmaceuticals and Sinopharm Hyundai, have issued relevant forecasts, the first three quarters of 2024 net profit growth of the lower limit of 37%, 64.01 percent, the upper limit of 45%, 74.65 percent.

Huahai Pharmaceutical and Sinopharm Hyundai are integrated pharmaceutical companies of raw materials and preparations, with revenue of 8.309 billion yuan and 12.07 billion yuan respectively in 2023, and the total market capitalization on October 11 was 27.3 billion yuan and 16.012 billion yuan respectively. The logic of the rapid growth of the two performance is consistent. On the one hand, with the recovery of API business climate, the two enterprises API sector growth significantly, the future business climate is still expected to continue. On the other hand, both companies continue to strengthen cost control and improve overall profitability.