KUALA LUMPUR (Aug 27): CCM Duopharma Biotech Bhd’s (CCMD) net profit grew 7.1% to RM10.34 million in the second quarter ended June 30, 2018 (2QFY18) from RM9.65 million a year ago, on higher demand from the private and public health sectors.

This resulted in a higher earnings per share of 3.69 sen for 2QFY18 compared with 3.46 sen for 2QFY17.

Quarterly revenue rose 5.9% to RM123.99 million against RM117.05 million a year ago.

The group also declared an interim dividend of 1.5 sen per share, amounting to RM9.93 million. Date of payment was not stated.

For the cumulative six months ended June 30, 2018 (1HFY18), CCMD saw its net profit rise 9.2% to RM20.99 million from RM19.22 million a year ago, while revenue increased 7% to RM257.25 million from RM240.36 million in 1HFY17.

In a filing with Bursa Malaysia today, CCMD said in tandem with Malaysia’s expected growth of 5% in 2018, the group is anticipating to see healthy demand from all business segments, boosted further by introduction of new products into the market.

The group will also continue its foray into the specialty products as one of its strategies moving forward to create a pool of niche products.

On the recent strengthening of US dollar globally, CCMD said it poses challenges to the group as the stronger greenback affects its production and other operation costs, which will then put pressure on its manufacturing margin and hence its profit.

Barring any unexpected circumstances, CCMD said it is expected to achieve satisfactory results in the financial year ending Dec 31, 2018 (FY18).

“We are buoyant on the positive outlook for the pharmaceutical industry for the rest of 2018 and CCMD will tap into these opportunities by enhancing our participation in both the local private and public sectors,” said its group managing director Leonard Ariff Abdul Shatar, in a separate statement today.

“CCMD is nonetheless positive moving forward and is particularly optimistic of the prospects of its specialty business which is set to launch more new and innovative products in the near future,” he added.

CCMD shares closed nine sen or 7.2% higher at RM1.34 today, for a market capitalisation of RM886.92 milion. The stock has risen 61.1% over the past year.