Typhoon suspends market resulting in adjustment of "Stock Connect" schedule; HEC CJ PHARM (01558) expected to be included on September 10th.

On September 6, the Hong Kong stock market was closed all day due to a typhoon, and the Hang Seng Index Company announced that the September index adjustment for 2024 would be postponed to September 10. This means that the new phase of the Hong Kong stock market link will also be delayed and officially implemented on September 10. On August 16, the Hang Seng Index Company announced the latest quarterly review results, with HEC CJ PHARM (01558) being included in a series of indices including the Hang Seng Composite SmallCap Index, Hang Seng Stock Connect SmallCap Index, and Hang Seng Stock Connect Innovative Medicine Index. According to a report from Zhongjin Research, HEC CJ PHARM may be included in the Stock Connect due to meeting a series of criteria including market value, liquidity, and time of listing. Recently, HEC CJ PHARM (01558) released its financial report for the first half of 2024, reporting revenue of 2.455 billion yuan and a net profit attributable to equity shareholders of 685 million yuan. Among them, sales of the anti-infection pediatric line represented by the core product Kewei amounted to 1.865 billion yuan, a performance that meets the company's revenue expectations given the high base of the previous year. The financial report indicates that during the reporting period, the company's centralized procurement and new retail lines achieved sales of approximately 346 million yuan, representing a 60.8% increase from the same period last year. In terms of business, the company has secured national centralized procurement for 12 different specifications of generic drugs, with the procurement business showing low sales expense ratios and steady revenue growth.