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
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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