FAST NEWS: Fosun Pharma’s Revenue Growth Slows Sharply in Third Quarter
The latest: Shanghai Fosun Pharmaceutical (Group) Co. Ltd. (2196.HK; 600196.SH) said Sunday its revenue increased 1.7% year-on-year to 10.27 billion yuan ($1.4 billion) in the third quarter, as measured using Chinese GAAP. But its net profit fell 16.2% to 907 million yuan.
Looking up: Despite the profit decline, the company’s net cash flow from operating activities increased 3.4% year-over-year to 1.35 billion yuan in the latest quarter.
Take Note: The company’s revenue grew 26% in the first half of this year to 2.13 billion yuan, much higher than the 1.7% increase in the third quarter, meaning its business slowed significantly in the latest period.
Digging Deeper: Fosun Pharm is a diversified drug company whose portfolio includes pharmaceutical, medical equipment and healthcare services. Of its 21.3 billion yuan in first-half revenue, about 67% came from the pharmaceutical manufacturing business, while medical devices and medical diagnostic and healthcare services accounted for about 19% and 14%, respectively. The company said it is aiming to build a regional healthcare model and health services industry chain. As part of that, it spent nearly 1 billion yuan to acquire 60% of one of the largest private oncology specialty medical centers in Singapore in June.
Market Reaction: Fosun Pharmaceutical shares rose 8.1% on Monday morning, and were up 3.9% at HK$20.1 at the midday break. The stock currently trades near the lower end of its 52-week range.
Translation by Jony Ho
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