Pharmaniaga

[winston]

not vested

Pharmaniaga records 14pc increase in Q1 profit

KUALA LUMPUR, May 19 — Pharmaniaga Bhd, Malaysia’s largest pharmaceutical company, recorded a 14.1 per cent increase in net profit for the first quarter (Q1) of 2020 to RM22.40 million compared with RM19.62 million a year earlier.

Revenue, meanwhile, rose to RM819.92 million from RM786.11 million in the corresponding period last year, thanks to stronger demand from its Indonesia division, which chalked up a 20.2 per cent revenue growth to RM239.19 million, it said in a filing with Bursa Malaysia today.

The company also declared a first interim dividend of 6.0 sen per share in respect of the financial year ending Dec 31, 2020, which is the same rate as a year ago.

The group’s revenue grew 14.6 per cent compared with the fourth quarter of 2019. It primarily attributed the improvement to stronger demand from government and private hospitals in Malaysia and Indonesia.

“This saw the group post a profit before tax of RM31 million compared with a deficit of RM238 million in the immediate preceding quarter,” it said.

In October last year, it was reported that MoH would not renew the group’s concession to distribute drugs and medical supplies to government hospitals when it ended on Nov 30, 2019 as the administration moved away from concessionaires towards an open tender system.

However, at the end of last year, the group secured a five-year extension for its logistics and distribution services contract with the ministry.

Pharmaniaga’s major shareholders are the Armed Forces Fund Board’s (LTAT) 59.45 per cent-owned subsidiary Boustead Holdings Bhd (55.93 per cent) and LTAT (11.12 per cent).

Source: Bernama

https://www.malaymail.com/news/money/20 ... it/1867786

[winston]

not vested

1QFY20: A satisfactory start to the year

1QFY20 core net profit made up 59%/54% of our/consensus’ forecasts, above expectations despite 1Q typically being the strongest quarter.

L&D will likely increase in 2QFY20 on increased distribution of medical supplies to government health facilities in light of the Covid-19 outbreak.

Reiterate Add, with a higher TP of RM2.20 (10.5x FY21F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... E45088AAE7

[winston]

not vested

Received a booster shot in 3Q21

3Q21 core EPS beat on strong Covid-19 vaccine fill-and-finish contribution.
4Q21F core EPS may ease qoq after the peak of the vaccination drive in 3Q.
Reiterate Add; TP cut 6% to RM1.00, now based on 19x FY23F P/E

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 9A961C5170

[winston]

not vested

More Sinovac vaccine contribution in FY22F

Boosters and potential exports/children vaccination will drive SV demand.

We now assume a further supply of c.3m filled-and-finished doses in 1H22F.

Reiterate Add and RM1.00 TP. PHRM is our pharmaceutical top pick.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 4B9C25AB0F

[winston]

not vested

Pharmaniaga is now a PN17 company

For the financial year ended Dec 31, 2022 (FY22), Pharmaniaga posted a net loss of RM607.3mil, or loss per share of 46.36 sen against a net profit of RM172.15mil, or 13.15 sen.

Its revenue fell to RM3.51bil from RM4.81bil in FY21.

Due to the accounting treatment in accordance with the Malaysia Financial Reporting Standards requirements and Pharmaniaga’s good governance practice, the group had to provide for an amount of RM552.3mil on the stock of vaccines.

Source: The Star

https://www.thestar.com.my/business/bus ... 17-company

[winston]

Triggering PN17
Pharmaniaga reported a 4QFY22 core LATAMI of -RM24.2m (3QFY22: RM11.7m,

4QFY21: RM110.1m), bringing FY22 core PATAMI to RM28.2m (-86.8% YoY), missing both our and consensus estimates.

Key variance was due to higher than-expected operating expenses and finance costs.

We lower FY23f and FY24f forecasts by 51% as we raise our operating expense and finance cost
assumption.

Subsequent to our earnings cut, TP is lowered to RM0.31 (from RM0.63 previously), representing a P/E multiple of 11.6x on its FY23f EPS of 2.7 sen.

Separately, Pharmaniaga has also slipped into PN17 as its shareholders’ equity position turned negative after making a provision of RM552.3m for its slow-moving Covid-19 vaccine stock.

Given the downside and the uncertain outlook after slipping into PN17, we are downgrading our rating on Pharmaniaga.

Source: HLIB

[winston]

vested

Pharmaniaga in PN17 highlights need for procurement reform, says think tank

The Galen Centre for Health and Social Policy says the GLC’s predicament is a ‘wake-up call’ for the pharmaceutical sector.

Among the reforms Azrul suggested are reducing government interference, increasing competition, diversifying suppliers, and getting rid of tender agents as middlemen.

He said removing dependence on tender agents, who act as middlemen within the procurement process and charge commission for their services, would result in lower cost of medicines.

Source: FMT

https://www.freemalaysiatoday.com/categ ... -366156373

[winston]

vested

Triggered PN17; downgrade as winter looms

PHRM triggered the PN17 criteria and will have to regularise in 12 months.

PHRM sank into the red in 4Q22, missing our forecast mainly due to the recognition of product development cost. Nil DPS also negatively surprised.

Downgrade to Reduce with lower RM0.25 TP, after applying a 30% discount.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 09F0CAF11D

[winston]

vested

CEO: Behind the scenes at Pharmaniaga

“The provision of RM552mil was made for 14 million doses of the Sinovac vaccine.

We are talking with a big company to offtake half of the stock or seven million doses to be sold overseas. We expect to sign the agreement soon," said Zulkarnain.

Source: TheStar

https://www.klsescreener.com/v2/news/view/1120693

[winston]

not vested

Pharmaniaga CEO Datuk Zulkarnain Md Eusope is paying no heed to detractors who say the pharmaceutical firm will not be able to clear its stock of 14 million vaccines. While some have pooh-poohed the idea of the company moving such a large volume of vaccines, Zulkarnain says it is talking to several companies to take the inventory off its hands.

Once the vaccines have been sold, at “only slightly higher than cost price” to cover the distribution costs, Pharmaniaga would be able to write back the provision of RM552mil made earlier, he says.

Source: StarBiz