A research report maintains a "Buy" rating on CONSUN PHARMA (01681), raising the target price from HK$13.9 to HK$15.9, citing the stock's low valuation and attractive dividend yield. The firm continues to favor the company's steady operations and high dividends, believing the company offers defensive characteristics amid market volatility and geopolitical uncertainties.

CONSUN PHARMA's first-half revenue and net profit increased 23.7% and 24.6% year-on-year respectively, both exceeding expectations. All three business segments performed well, with nephrology, maternal & pediatric, and contrast agents recording sales growth of 28%, 17.5%, and 22% respectively. Uremic Clearance Granules (UCG) and Yuanlikang (YLK) continued to drive growth. The company's overall gross margin met expectations and showed an upward trend.

The report notes that CONSUN PHARMA is leveraging the commercial success of UCG to build a comprehensive R&D platform in the nephrology field and develop integrated solutions for China's kidney disease management market. The company's strong nephrology pipeline helps establish its leadership position in the specialty field.

Additionally, management raised its revenue growth guidance for this year to over 15%. The analysis indicates that centralized procurement may have a slight impact on the company's contrast agent segment in the second half, but the overall impact is controllable. The company's gross margin is expected to stabilize at around 77% this year, with the sales and administrative expense ratio remaining stable.