FAST NEWS: SSY Group’s profit dips in nine months to September

The Latest: Medical products maker SSY Group Ltd. (2005.HK) reported on Friday its net profit for the first three quarter of this year fell 2.8% year-on-year to HK$919 million ($118 million).

Looking Up: Revenue from the company’s upright soft bag intravenous (IV) solutions jumped 21% to HK$788 million, making it the company’s second-largest revenue source. But revenue from its largest source, its non-PVC soft bag IV solutions, fell 8.2% to HK$1.44 billion.

Take Note: The company said its turnover in Hong Kong dollar terms was adversely affected as most of its sales were in Mainland China and denominated in yuan, which depreciated by about 1.2% year-on-year against the Hong Kong dollar in the first nine months of this year.

Digging Deeper: With nearly 70 years of history, SSY is a leading Chinese maker of tablets, capsules, granules and oral liquids, and was listed on the Hong Kong Stock Exchange in 2005. Its revenue took a hit during the pandemic as many people avoided going to hospitals. More recently it has turned its focus to antiviral, antibacterial, anti-tumor, neurological, cardiovascular and anesthesia products and accelerated R&D in both innovative and generic drugs, resulting in a significant rise in revenue since 2021.

Market Reaction: SSY’s shares fell on Monday and closed down 1.3% at HK$3.91 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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