HINOON to Begin Expansion Work in 2H2025
Staff Report
Karachi: HINOON plans to start formal work on expansion at Quaid-e-Azam Business Park in 2H2025.
Topline Securities organized Corporate Briefing Session of Highnoon Laboratories (HINOON), where management discussed financial performance and future outlook.
Regarding the expansion at Quaid-e-Azam Business Park, management highlighted that the design phase has been completed. Formal work is expected to begin in 2H2025.
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HINOON outperformed the industry, with its revenue growing at a 10-year CAGR of 23%, compared to the pharmaceutical industry’s 10-year CAGR of 15%.
HINOON’s revenue grew by 25% to Rs24.6bn in 2024, of which 8% was driven by volume growth and 17% by price increases. The management expects the growth momentum to continue in the coming period and to outperform industry growth.
Gross margins improved to 51% in 2024, compared to 48% in 2023. For 2025, management expects margins to improve further, driven by a decline in API prices and an anticipated reduction in customs duties on APIs, as announced by the government in the FY26 budget.
HINOON imports 90% of its APIs, while the remaining 10% is sourced locally. Furthermore, majority of imported APIs come from Europe and China, not from India.
Bonus share issue is not under consideration due to higher taxes, while stock split is being considered by management; however, final decision rests with the board.
HINOON is recognized as a leader in Cardiology, Diabetes, and Respiratory care. HINOON ranked 12th out of over 700 pharmaceutical companies in Pakistan as of Dec-2024.
Product portfolio mix consists of Anti-Infectives (25%), CVS & Blood (23%), Alimentary (22%), Respiratory (17%), Diabetes (7%), Musculoskeletal (3%), and Others (3%).
Top 10 brands constitute to more than 50% of the total gross revenue. Leading brands include Combivair, Cyrocin, Tagipmet, Kestine, Forge Family, Ulsanic, Misar, Tres-Orix Forte, Ceftro, and Skilax.
The company launched 17 new products, including 11 chronic healthcare launches and 6 acute healthcare launches.
HINOON’s exports have improved from 5% in 2023 to 7% in 2024. The company exports to Afghanistan, Azerbaijan, Cambodia, Ghana, Kenya, Iraq, Kyrgyzstan, Sri Lanka, Syria, Mauritius, Mozambique, Macau, Sudan, Tajikistan, Tanzania, Uzbekistan, Vietnam and Yemen.
