Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Aug 18): Shares of Pharmaniaga Bhd are down 13 sen or 2.3% after it reported a lower revenue in second quarter ended June 30, 2015 (2QFY15).

As at 10.47am, Pharmaniaga (fundamental: 0.75; valuation: 1.70) was trading at RM5.52 with 416,100 shares traded.

Its share price gives it a market capitalisation of RM1.43 billion.

Pharmaniaga’s current share price is a 24.39% decline compared to the one-year high of RM7.39 achieved at end-April 2015.

The pharmaceutical company reported a 2.3% decline in revenue of RM512.85 million for 2QFY15, compared to RM525.07 million for the same period a year ago.

Revenue for the six-month period (6MFY15) also dropped by a marginal 0.91% to RM984.75 million, from RM993.74 million a year ago.

Its net profit for 2QFY15, however, saw a 1.5% increase to RM16.22 million from RM15.98 million a year ago, on higher profit margins from the manufacturing division.

Its 6MFY15 net profit also saw a 13.8% increase to RM48.01 million from RM42.19 million in 1HFY14, largely due to favourable profit margins from the manufacturing division.

Meanwhile, CIMB Research has upgraded Pharmaniaga Holdings Bhd to “hold” (from “reduce”) at RM5.65 with a lower target price of RM6 (from RM6.70) and said Pharmaniaga’s 1H15 net profit broadly met expectations, at 45% of house and consensus full-year forecasts.

In a note Aug 17, the research house said Pharmaniaga declared a dividend of 7 sen per share, which was also in line with house estimate.

“We cut our FY15–17 EPS by 3% after updating our earnings model, which leads to a lower SOP-based target price of RM6.00.

“However, we upgrade Pharmaniaga to 'hold' from 'reduce' as its share price looks more palatable now, following the 17% decline since end of last month.

“Its decent dividend yield of 5.5% should lend support to its share price,” it said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

      Print
      Text Size
      Share