China market booming for Chi-Med
Hutchison China MediTech (Chi-MEd) saw profits jump in the first half and said it was well-positioned to take advantage of the enormous Chinese market.
Hutchison China MediTech (Chi-MEd) saw profits jump in the first half and said it was well-positioned to take advantage of the enormous Chinese market.
The AIM-listed firm saw pre-tax profits almost double to $6.5m on revenues of $109.2m.
The firm said profits had been spurred on by the rapid expansion of domestic consumer spending power in China.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
On top of this, the Chinese pharmaceutical market was also being driven by the commitment of the government to widen and improve state sponsored healthcare throughout the Chinese population, it said.
"The impact of these growth drivers is most clearly evident in our prescription drug business, which has once again delivered outstanding organic growth, with sales up 30%," said Chairman Simon To.
The company's China Healthcare and Drug R&D Divisions also saw the benefit from this, with sales rising 26% and 86% respectively.
"The prospects for each of our businesses are strong, and as a result we remain positive on the outlook of Chi-Med for the full year and beyond," To said.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
‘Financial strain’ forcing landlords out of buy-to-let sector, industry warns
News New figures from Rightmove suggest the buy-to-let sector is becoming less attractive to investors, with a record number of previously-rented homes being listed for sale.
By Henry Sandercock Published
-
Should investors fear the “September effect” in stock markets?
The first month after the summer holidays can be volatile for stock markets. Are investors right to fear the September effect?
By Katie Williams Published