Jacob Research Pharmaceuticals announced its results for fiscal year 20 (as of the end of March).
We saw that Jacob Research Pharmaceuticals submitted more than 27 new drug registration filings in fiscal year 20, adding 19 new products to the product portfolio and introducing a total of 79 specialist drugs.
The company is looking for growth opportunities in its consumer health business and has developed five key business development strategies.
The company plans to spin off its consumer health business to create value for shareholders.
Summary of results for FY20
Revenue rose 6.3 per cent year-on-year to HK $1.57 billion. By business category, generic drug revenues rose 3.6 per cent year-on-year to HK $1.298 billion, while brand drug revenues rose 21.2 per cent year-on-year to HK $272.8 million. In terms of branded drugs, revenue growth mainly comes from newly acquired branded traditional Chinese medicine business, as well as branded traditional Chinese medicine products such as he Jigong (up 10.8% year-on-year) and Shilingyou (up 8.4% year-on-year).
Gross profit increased by 2.3% to HK $690 million, while profit attributable to shareholders decreased by 13.9% to HK $215.6 million, mainly due to the recognition of one-time revaluation gains in fiscal year 19, increased investment and operating expenses for the establishment of a regional management structure, and one-time professional expenses incurred in preparation for the spin-off of the group's consumer health business.
The board of directors recommends a final dividend of HK2.5 cents per share; plus an interim dividend of HK2.0 cents per share, the total dividend for fiscal year 20 is HK4.5 cents per share (equivalent to a dividend yield of about 3.6% at current share prices).
Introduce new products
In fiscal year 20, Jacob Research Pharmaceuticals filed more than 27 new drug registration filings, adding 19 new products to its product portfolio (including perindopril tablets, diltiazem controlled release tablets, atomoxetine capsules, mesalazine enteric-coated tablets). In addition, in FY20, in order to tap new market potential through high value-added products, Jacobson Research Pharmaceuticals signed regional licensing agreements with well-known manufacturers in the Netherlands, Greece, Spain, South Korea and Taiwan. a total of 79 specialist drugs with high manufacturing difficulties have been introduced, of which 23 products have been qualified for bidding in the coming year. We believe that as the company continues to launch new products, the company's medium-and long-term growth will be supported.
Seek growth opportunities in the area of consumer health
Jacob Research Pharmaceuticals develops its consumer health business through five priority strategies, including: 1) improving operational performance and building capabilities; 2) establishing cross-border e-commerce platforms to expand regional brand awareness; 3) investing in platforms and new products / categories for repeatable growth; 4) optimizing the cost structure to finance long-term growth; and 5) establishing strategic alliances or joint ventures to enter more markets.
Spin off the consumer health business to create value
The company plans to spin off its consumer health business to create value, this involves: 1) creating two separate and flexible platforms to drive growth; 2) achieving a strategic and management focus; 3) establishing a unique investment identity; 4) allowing direct access to the capital market; and 5) increasing the visibility of separate support for capital planning and pipeline investment.
