Friday 29 Mar 2024
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KUALA LUMPUR (March 11): Hong Leong IB Research has maintained its “Buy” rating on Pharmaniaga Holdings Bhd at RM5.78 with a higher target price of RM6.21 (from RM6) after Pharmaniaga’s wholly-owned subsidiary, Pharmaniaga Logistics Sdn Bhd has entered into a Supply Agreement with Universiti Kebangsaan Malaysia (UKM) to undertake the services of purchasing, storing, supplying and delivering to UKM drugs and non-drugs approved by UKM (Approved Products).

In a note Wednesday, the research house said the value of the agreement would depend on actual volume, the agreed unit price of Approved Products and scope of services rendered.

“The agreement is valid for a period of not more than 5 years, ending on 30th Nov 2019.

“We reiterate that this should spur more potential business opportunities with other university hospitals in Malaysia.

“We are positive on this new development as it should widen its market reach and provide additional boost to the company’s earnings base.

“Maintain Buy with higher target price of RM6.21 based on higher FY16 P/E multiple of 15x as we see improving prospects for the company, especially after recent developments,” it said.

 

 

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