Pharmaniaga

Re: Pharmaniaga

Postby winston » Tue Nov 19, 2019 10:30 am

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Pharmaniaga Bhd
Secures two different extensions from MOH


PHRM was granted extensions with regards to supply of drugs to MOH for two years and provision of L&D services to all MOH facilities for five years.

This is positive news, but offset by our view that PHRM will need to amortise the PhIS system over five years vs. previous expectations of 10 years.

Maintain Hold, with a lower TP of RM2.17 (11.5x CY21 P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... B5783E21AD
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Re: Pharmaniaga

Postby winston » Wed Nov 20, 2019 2:39 pm

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Higher operating costs weigh on Pharmaniaga Q3 earnings

KUALA LUMPUR: Pharmaniaga Bhd posted lower net profit of RM481,000 compared with RM15.05mil a year ago as it was impacted by higher operating costs.

Pharmaniaga said on Wednesday its revenue rose by 22% to RM716.85mil from RM587.66mil a year ago, mainly due to stronger demand from the concession and non-concession businesses. Earnings per share were 0.18 sen compared with 5.79 sen.

In the nine months ended Sept 30, its net profit fell by 22.7% to RM29.38mil from RM38.03mil in the previous corresponding period. Its revenue rose by 18% to RM2.10bil from RM1.78bil.

Pharmaniaga said its logistics and distribution division posted a higher profit before tax (PBT) of RM17mil compared with RM12mil a year ago.

“Despite higher operating costs, this improved performance was driven by better contributions from the non-concession business, ” it said.

Its manufacturing division recorded a PBT of RM36mil on the back of revenue of RM219.8mil in line with order trends from the government sector.

However, it was upbeat on the outlook for the division as it accelerates launches of new products, expands international market presence and increases capacity utilisation via the contract manufacturing business.

Its Indonesia division recorded a deficit of RM700,000, mainly due to higher finance costs and increased operating costs.

Managing director, Datuk Farshila Emran said the group recorded improved revenue for the January-September period due to solid contributions from both the concession and non-concession businesses.

“However, our bottom line was impacted due to reduced contribution margins.”

“In the final quarter of the year, we foresee further impact on earnings due to higher amortisation of the Pharmacy Hospital Information System.

“Nevertheless, we remain optimistic on long-term prospects, particularly given the extension by the Ministry of Health (MOH) for Pharmaniaga’s services for the provision of medicines and medical supplies to MOH facilities from Dec 1,2019 to Dec 31,2021. In addition, we will also continue to provide logistics and distribution services to MOH for a period of five years ending Dec 31,2024, ” she said.

Farshila said Pharmaniaga had a proven track record and performance and it was well-equipped to continue providing quality products and services.

“In the interim, we remain focused on strengthening our capabilities and operational efficiencies to meet the healthcare needs of both our domestic and overseas markets, ” she added.

Source: The Star

https://www.thestar.com.my/business/bus ... B302LU8.99
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Re: Pharmaniaga

Postby winston » Thu Nov 21, 2019 9:42 am

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9M19: Bogged down by higher costs

We deem 9M19 core net profit of RM28.7m (-45.2% yoy) to be within expectations at 86% of our full-year estimates.

We are positive on the extensions that PHRM secured from MOH, but near term earnings will be weighed down by higher amortisation charges for PhIS.

Maintain Hold, with unchanged TP of RM2.17 (11.5x CY21 P/E)

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A3254C8C98
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Re: Pharmaniaga

Postby winston » Fri Feb 21, 2020 8:35 am

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Pharmaniaga incurs RM178.6mil net loss in fourth quarter

PETALING JAYA: Pharmaniaga Bhd slid into a net loss of RM178.6mil for the fourth quarter ended Dec 31,2019, from a net profit of RM4.4mil in the corresponding quarter in the preceding year.

For the quarter in review, the pharmaceutical company saw its revenue grow 20% to RM715.7mil from RM596.6mil.

Pharmaniaga said the higher revenue was mainly attributable to stronger demand from the concession, non-concession and Indonesia businesses.

“However, as a result of the revision in useful life of the rights to supply, a non-cash item worth RM247mil and the provision of stock write-off on the voluntary Ranitidine product recall, the group recorded a loss before zakat and taxation (LBT) of RM238mil, ” it said in a statement.

Pharmaniaga said the rights to supply were expenses incurred for Pharmacy Information System in providing and supplying to the government certain hardware and software, being part and parcel of the ordinary contractual obligations under the concession agreement.

“The title of the said hardware and software vests with the government of Malaysia. With the new contract arrangement as explained in A6, the remaining unamortised rights to supply has been fully recognised in the current period, ” it said.

For the full year, Pharmaniaga’s net loss stood at RM149.2mil, or 57.2 sen per share, compared with a net profit of RM42.5mil, or 16.33 sen per share, in 2018 due to lower contribution margins from manufacturing division and the provision of stock write off as a result of voluntary Ranitidine product recall.

It, however, registered a higher revenue of RM2.8bil compared with RM2.4bil in previous year.

“This was achieved on the back of solid performances from concession, non-concession and Indonesia businesses. However, as a result of the revision in useful life of the rights to supply as explained, the group posted a LBT of RM192mil, ” it said.

Source: The Star

https://www.thestar.com.my/business/bus ... th-quarter
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Re: Pharmaniaga

Postby winston » Fri Feb 21, 2020 8:40 am

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Pharmaniaga says no longer burden by PhIS after Q4 losses

By IZWAN IDRIS

KUALA LUMPUR: Drugmaker Pharmaniaga Bhd said revenue increased 20% in the last quarter on improved demand, but a huge one-time hit on expenses incurred for the Pharmacy Information System (PhIS) resulted in heavy losses for the company.

The company registered a net loss of RM178mil in the December quarter that dragged its full year earnings down to RM42.5mil.

"This loss recorded for the quarter under review is a direct impact of Pharmaniaga fulfilling the contractual obligations of the PhIS under the concession agreement by the Government," it said in a statement today.

Following the new contract arrangement with the Health Ministry, the remaining unamortised PhIS costs were fully recognised in the quarter under review.

In addition, there was also provision for stock write off on the voluntary Ranitidine product recall of RM9mil.

This saw the Group recording a loss before zakat and taxation of RM238mil for the fourth quarter.

Revenue in the fourth quarter was RM2.8bil, while EBITDA came in at RM131mil.

“It was a challenging quarter as the Group was significantly impacted by the recognition of the remaining unamortised PhIS, a non-cash item worth RM247mil." managing director Datuk Farshila Emran said in the statement.

She noted that the group’s financial performance would not be burdened by the PhIS amortisation moving forward.

“The fact that we continued to register solid growth in revenue is indeed encouraging and bodes well for the Group’s prospects," she said.

In the short-term, the ongoing coronavirus outbreak remains at the forefront as the healthcare sector strives to contain the disease.”

From a long-term perspective, Farshila said the outlook is positive for Pharmaniaga.

"The new contract secured with MOH for the provision of medicines and medical supplies to MOH facilities from Dec 1, 2019 to Dec 31, 2021 as well as logistics and distribution services to MOH for five years ending Dec 31, 2024 are set to be key contributors to the Group’s earnings,” she said.

Source: The Star

https://www.thestar.com.my/business/bus ... -q4-losses
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Re: Pharmaniaga

Postby winston » Fri Feb 21, 2020 10:01 am

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4QFY19: Hit by bitter amortisation pill

FY19 core net profit of RM29.3m (-49.9% yoy), excluding one-offs and including amortisation charge, was below our and consensus expectations.

A key surprise was a RM247m amortisation charge recognised in FY19, representing a full amortisation of the PhIS system for its CA with MoH.

We keep our forecasts unchanged for now, pending further clarification from the analyst briefing tomorrow.

Reiterate our Hold call.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 4C697D9222
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Re: Pharmaniaga

Postby winston » Mon Feb 24, 2020 11:03 am

Pharmaniaga selldown could run further in short term — analysts

by Arjuna Chandran Shankar

MIDF Research’s Nabil Zainoodin — who maintains the only “buy” call on Pharmaniaga with a higher TP of RM2.35, from RM2.27 previously — said he was upgrading the stock to “buy” from “neutral” considering it is now trading at an attractive forward price-earnings ratio (PER) of 10.4 times, which is 1.5 standard deviation (SD) below its three-year historical PER average and its dividend yield of 5%.

When contacted, Nabil said fundamentally the company has no issues, with a healthy cash level.

“There are no other players [that] can [provide] the same level of service as Pharmaniaga, particularly in the logistics and distribution (L&D) business, so the barriers to entry are high,” he said.

Nabil said the key performance indicators set by the health ministry are very strict. For example, medical supplies have to be distributed within seven days to remote areas.

Furthermore, the L&D business has only a 1.8% earnings margin, so not many other players would be keen to take up the same space.

In November last year, the government had put in a 25-month interim extension for Pharmaniaga’s medicine and medical supply contract, while awarding a five-year L&D contract ending 2024.

Farshila, in her media briefing, said the two concession contracts a will boost the group’s sales further and lead to another year of double-digit growth in FY20 revenue. This is also expected to translate to an improved bottom line, she said.


Source: The Edge

https://www.theedgemarkets.com/article/ ... 4-analysts
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Re: Pharmaniaga

Postby winston » Mon Feb 24, 2020 2:31 pm

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Taking a positive tilt

We attended Pharmaniaga’s briefing and came back feeling more optimistic on the stock.

Pharmaniaga won’t be burdened by PhIS amortisation moving forward and this is expected to lift earnings.

We adjusted our forecasts to account for this. Given the 5 year concession extension granted by MOH, and the absence of PhIS amortisation going forward, we are upgrading the stock as we feel that at these valuations, the risk reward is favourable.

We raise our PE target to 13x (-0.5SD below 5 year mean) (from 12x), tagged to FY20 EPS. Thus we upgrade to a BUY (from HOLD), with higher TP of RM2.30 (from RM2.08).

Source: HKIB
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Re: Pharmaniaga

Postby winston » Tue Mar 10, 2020 10:31 am

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Value emerging after share price weakness

PHRM has lost RM72m (28 sen/share) in market cap since posting large 4Q headline losses. We think this has more than priced in concerns over its CA.

Moving forward, PHRM is looking to rely on its manufacturing and non-CA segments to drive future earnings growth.

We upgrade the stock to Add from Hold due to its attractive FY20-22F dividend yields of 6.8-8.7% and FY20 P/E of 10x.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 1F0CE19272
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Re: Pharmaniaga

Postby winston » Wed Mar 18, 2020 2:24 pm

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Pharmaniaga assures no disruption of pharmaceutical supply

SHAH ALAM (March 18): Pharmaniaga Berhad (Pharmaniaga) assures that there will be no disruption in the supply of medicines to all government hospitals and clinics, as it is business as usual for the company.

Pharmaniaga Group Managing Director, Datuk Farshila Emran, in a statement said, its wholly owned subsidiary, Pharmaniaga Logistics Sdn Bhd (PLSB), will continue to provide timely door-to-door service delivery of medicines, even to the remotest areas in the country during the nationwide movement control order period.

“This is an unprecedented situation and we prepared ourselves by conducting simulation of various scenarios for PLSB to operate in ensuring the pharmaceutical supplies will reach all government hospitals and clinics within the stipulated delivery period.

“We are working closely with the Ministry of Health in monitoring the situation and be rest assured, we will continue to provide our best service for the public, consistent with our tagline Passion for Patients,” she said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... cal-supply
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