Pharmaceutical companies release performance forecasts intensively: overseas markets boost performance, with many winning the "turnaround battle"

Recently, listed companies in the A-share pharmaceutical sector have begun to densely disclose their 2025 performance forecasts. According to statistics from Beijing News Shell Finance, as of January 30, a total of 255 related companies have announced their performance forecast data.

Among them, more than 30% of companies have sent positive signals—50 companies with increased performance, 24 companies achieving a turnaround, winning the “battle of recovery,” with outstanding performance in chemical pharmaceuticals, medical devices, medical services, and other fields.

It is worth noting that the overseas market has become a common growth engine for many companies. Take Libang Instruments as an example; the company emphasized in its performance forecast that “the international market maintains double-digit growth.” Meanwhile, some companies have successfully reversed their performance through cost reduction and efficiency enhancement, as well as product structure adjustments.

Internal industry differentiation is also evident. Looking at the performance in 2025, vaccine companies are still in the adjustment cycle, with most under performance pressure; however, many established traditional Chinese medicine companies have emerged from the pain period and are experiencing a rebound in performance.

Over 100 pharmaceutical companies have issued performance forecasts, with 19 achieving a performance turnaround within the year

On January 30, Beijing News Shell Finance reporters, based on Wind data, found that out of 474 pharmaceutical companies, 255 have released their 2025 performance forecasts. 81 companies have sent positive signals, including 50 with increased performance and 6 with slight growth.

As of January 30, 255 pharmaceutical companies have released their 2025 performance forecasts. Data source: Wind Shell Finance Table

The 50 companies with increased performance are mainly distributed in chemical pharmaceuticals, medical devices, and medical services. Many companies specifically mentioned in their announcements that the overseas market has become an important driver of growth.

In 2025, Libang Instruments’ net profit attributable to the parent is expected to be between 284 million and 332 million yuan, a year-on-year increase of 75% to 105%. The company mentioned in its forecast that overall revenue will steadily grow in 2025, especially with double-digit growth in the international market, with notable growth in patient monitoring and ultrasound imaging businesses.

Companies such as KeyKang Technology, David Medical, Rymate, and Chunli Medical also mentioned that advancing overseas business layout has a positive impact on performance.

Meanwhile, in 2025, 24 companies are expected to turn losses into profits. The core factors driving these pharmaceutical companies to reverse losses include increased sales of core products and services, growth in business development (BD) revenue, and some companies also regard cost reduction and efficiency enhancement as key means to increase profit margins.

In 2025, due to a decline in sales of vacuum blood collection systems, as well as reductions in reagent, software products, and service revenues, Yangpu Medical’s revenue is expected to decrease by 15%-20% year-on-year. However, the company also stated that through systematic cost optimization measures and refined management, it effectively reduced manufacturing costs. Despite a downward trend in product prices, gross profit margin slightly increased year-on-year; the company controlled expenses reasonably and continued to optimize the expense structure, resulting in a year-on-year decrease in total period expenses and expense ratio.

Combined with rising investment income, decreased asset impairment, and a reduced negative impact from non-recurring gains and losses on performance, Yangpu Medical achieved a turnaround during the reporting period, with net profit attributable to the parent expected to be between 12 million and 17.5 million yuan.

Some companies benefited from investment gains, while others’ performance was dragged down by investments. Huayu Pharmaceutical’s forecast shows an expected revenue of 9.6 billion to 10.9 billion yuan in 2025, a decrease of 12.28% to 0.40% year-on-year. The net profit attributable to the parent is expected to be a loss of 29 million to 24 million yuan.

Regarding the reasons for losses, the company stated that its invested enterprise, Zhejiang Tongyuan Kang Medical Co., Ltd., was listed on the Hong Kong Stock Exchange under the Hong Kong Listing Rules 18A on August 20, 2024. The fluctuation in the stock price of the invested enterprise affected the fair value change loss of 173 million yuan during the reporting period.

Vaccine companies generally face performance pressure, while many established traditional Chinese medicine companies see a recovery

In 2025, vaccine companies still have not exited the performance adjustment period. Among the nine vaccine companies that have issued forecasts, three are expected to see a performance decline, three are expected to report a first loss, and one continues to lose money.

Only Watson Bio and CanSino Biologics are expected to perform positively. Watson Bio’s performance slightly increased, with net profit attributable to the parent estimated between 160 million and 190 million yuan, a year-on-year growth of 13%-34%. Although the company’s net profit attributable to the parent increased year-on-year, it pointed out in its forecast that during the reporting period, the overall domestic and international vaccine markets are still in a downward cycle, with total revenue from vaccine products decreasing by about 8% compared to the previous year.

In 2025, CanSino Biologics achieved a turnaround, with net profit attributable to the parent expected to be between 24.5 million and 29 million yuan. The turnaround was mainly due to increased revenue from its first quadrivalent meningococcal conjugate vaccine MenHibrix, efforts to reduce costs and increase efficiency, and optimized production-sales collaboration. Additionally, the company mentioned that with rapid progress in R&D projects and international cooperation, it received more government subsidies and international funds, generating significant non-recurring income during the reporting period.

Due to intensified market competition for HPV vaccines and rabies vaccines, weakened demand for herpes zoster vaccines, and reduced demand for varicella vaccines, in 2025, ZhiFei Bio, Wantai Bio, and Baike Bio experienced their first losses. ZhiFei Bio’s loss was approximately 10.698 billion to 13.726 billion yuan; Kanghua Bio, Kangtai Bio, and Chengda Bio also saw performance declines, with Kangtai Bio’s net profit attributable to the parent decreasing by approximately 75.7%-63.8%, and Jindike continuing to lose money in 2025.

In 2025, after passing the pain period, many established traditional Chinese medicine companies experienced a performance rebound.

Among them, Yiling Pharmaceutical’s forecast shows the company achieved a turnaround. In 2024, due to some respiratory products nearing their expiration date, the company wrote off related sales revenue and made asset impairment provisions for inventory close to expiration, along with decreased revenue, rising raw material prices leading to lower gross margins, and sustained high R&D investment, Yiling Pharmaceutical reported a loss of about 725 million yuan.

In 2025, its net profit attributable to the parent is expected to be between 1.2 billion and 1.3 billion yuan. The company mentioned in its forecast that it will expand its market domestically and internationally, strengthen management internally, and achieve a restorative growth in revenue. It also fully enhanced budget management, established a comprehensive cost control system, and improved quality and efficiency, significantly increasing profit margins.

Meanwhile, Zousheng Pharmaceutical also achieved a turnaround. The company expects a net profit attributable to the parent of 260 million to 310 million yuan in 2025, a year-on-year increase of 186.91%–203.62%. Zousheng Pharmaceutical stated that the main reason for the turnaround was the significant reduction in the negative impact of asset impairment losses and non-recurring gains and losses compared to the previous year.

In 2024, the company recorded an asset impairment loss of 547 million yuan, reducing net profit attributable to the parent by 484 million yuan, with non-recurring gains and losses of -38.84 million yuan, mainly due to fair value changes in the company’s holdings of trading financial assets and provisions based on the results of second-instance litigation.

(Article source: Beijing News)