Shandong Keyuan Pharmaceutical Co. Ltd. A

Keyuan Pharmaceutical released its 2026 interim report. The company's total operating revenue was 331 million yuan, net profit attributable to the parent company was 64.6921 million yuan, and net cash inflow from operating activities was 42.2572 million yuan. The company's latest asset-liability ratio was 25.17%, up 2.98 percentage points from the previous quarter and up 11.32 percentage points from the same period last year. Gross margin was 55.71%, down 1.89 percentage points from the previous quarter. ROE was 4.53%, and diluted earnings per share was 0.60 yuan. Total asset turnover was 0.18 times, and inventory turnover was 1.07 times. The number of shareholders was 8,900, and the shareholding ratio of the top ten shareholders was 62.48%.

Keyuan Pharmaceutical released its 2026 half-year report, showing first-half net profit attributable to the parent of 64.69 million yuan, up 51.6% year on year. Operating revenue was 331 million yuan, up 45.5% year on year. Net profit attributable to the parent after deducting non-recurring items was 55.91 million yuan, up 55.9% year on year. Net operating cash flow was 42.26 million yuan, up 65.3% year on year. Earnings per share were 0.5974 yuan. In the second quarter, operating revenue was 170 million yuan, up 45.9% year on year, and net profit attributable to the parent was 34.62 million yuan, up 76.6% year on year. As of the end of the second quarter, total assets were 1.911 billion yuan, up 13.2% from the end of the previous year, and net assets attributable to the parent were 1.43 billion yuan, up 5.5% from the end of the previous year. The company focuses on the research, development, production and sales of chemical active pharmaceutical ingredients and their formulation products, and has made strategic arrangements in areas such as glucose-lowering and weight-loss therapies, anti-aging biology and brain-computer interfaces.

Two products from Shandong Linuo Pharmaceutical, a wholly-owned subsidiary of Keyuan Pharmaceutical, have entered the proposed selection list for the 12th National Drug Procurement. The company's stock closed up 5.04% on the day. Among them, the 4 mg and 8 mg specifications of betahistine hydrochloride tablets have completed the approval for the change of marketing authorization holder, while isavuconazonium sulfate for injection was proposed for selection directly under the subsidiary's name. Due to the change in the holder entity, the proposed selection entity for betahistine hydrochloride tablets will subsequently be replaced. The company noted that it is currently only in the proposed selection public notice stage, with the procurement cycle running until December 31, 2029, and there is uncertainty regarding the final revenue contribution of the products. As of the close of the day, Keyuan Pharmaceutical's stock price was 35.45 yuan, up 5.04%, with a total market capitalization of 3.839 billion yuan.

Keyuan Pharmaceutical's wholly-owned subsidiary, Linuo Pharmaceutical, recently received drug registration certificates and supplementary application approval notices from the National Medical Products Administration, covering three products: isosorbide dinitrate injection, esmolol hydrochloride injection, and betahistine hydrochloride tablets. Isosorbide dinitrate injection is indicated for unstable angina, vasospastic angina, acute myocardial infarction, and acute left ventricular failure. Esmolol hydrochloride injection is used for supraventricular tachycardia and tachycardia and hypertension during and after surgery. Betahistine hydrochloride tablets treat vertigo, tinnitus, and hearing loss associated with Ménière's disease. As of now, 19 companies have passed or are deemed to have passed the consistency evaluation for isosorbide dinitrate injection, 29 for esmolol hydrochloride injection, and 6 for betahistine hydrochloride tablets. In the first quarter of 2026, Keyuan Pharmaceutical achieved revenue of 161 million yuan and a net profit attributable to the parent company of 30.07 million yuan.

Shandong Linuo Pharmaceutical, a wholly owned subsidiary of Keyuan Pharmaceutical, has added four new varieties to the National Essential Medicines List, 2026 edition. Including existing products, the company and Linuo Pharmaceutical now have a total of 18 products included in the list. In the first quarter of 2026, Keyuan Pharmaceutical achieved revenue of 161 million yuan and net profit attributable to the parent company of 30.07 million yuan.

Keyuan Pharmaceutical has released its 2026 half-year performance forecast, expecting net profit for the first half to be between 60 million and 65 million yuan, a year-on-year increase of 40.57% to 52.29%. The company stepped up efforts to develop the formulation market and introduced new products, leading to higher sales of new products. At the same time, it continued to optimize internal refined operations management, steadily advanced cost reduction and efficiency improvement, and raised production efficiency, resulting in an increase in the gross margin of formulation products.

Keyuan Pharmaceutical released an earnings forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 60 million yuan and 65 million yuan, an increase of 40.57% to 52.29% from 42.68 million yuan in the same period last year. Net profit after deducting non-recurring items is expected to be between 52 million yuan and 57 million yuan, compared with 35.87 million yuan a year earlier, representing growth of 44.97% to 58.91%. The profit growth is mainly due to intensified efforts in developing the formulation market, the introduction of new products boosting sales, and optimized operational management improving production efficiency, which lifted gross margins for formulation products. In addition, after settling a contract dispute between a wholly owned subsidiary and Jiangsu Saibang Pharmaceutical Co., Ltd., the company paid 8 million yuan. Keyuan Pharmaceutical had already accrued 16.107 million yuan in non-operating expenses for 2025, and reversed 8.107 million yuan in the current period, which had a positive impact on profit. In the first quarter of 2026, Keyuan Pharmaceutical achieved revenue of 161 million yuan and net profit attributable to the parent of 30.07 million yuan.

Keyuan Pharmaceutical issued an earnings forecast, expecting net profit attributable to shareholders of the listed company for the first half of 2026 to be between 60 million yuan and 65 million yuan, representing a year-on-year increase of 40.57% to 52.29%.