HOVID (7213) - Stocks With Momentum: Hovid
April 22, 2015 : 12:23 PM MYT
Hovid Bhd (-ve)
Hovid (Fundamental: 2.1/3, Valuation: 0.5/3), which manufactures over 400 generic drugs, is likely seen as a proxy for the resilient healthcare industry. Yesterday, the stock hit a fresh one-year high of 55.5 sen with 32.1 million shares changing hands.
Whilst the company has relatively strong fundamentals, scoring 2.1 out of 3, valuations appear pricey, scoring just 0.5 out of 3.
Future earnings will be driven by capacity expansion. Phase 1 of its new manufacturing plant (adjacent to the current Chemor facility) is expected to be up and running by 2H2015 and would increase tablet and capsule capacity by 30%. By early-2016, tablet and capsule capacity would double from current levels.
For 1HFYJune15, revenue rose 14.4% y-y to RM97.1 million while net profit expanded 26% y-y to RM10.4 million, bolstered by forex gains from US$-denominated export sales.
Of interest, Kumpulan Wang Persaraan emerged as a substantial shareholder with a 5.04% stake in mid-April.
http://www.theedgemarkets.com
April 22, 2015 : 12:23 PM MYT
Hovid Bhd (-ve)
Hovid (Fundamental: 2.1/3, Valuation: 0.5/3), which manufactures over 400 generic drugs, is likely seen as a proxy for the resilient healthcare industry. Yesterday, the stock hit a fresh one-year high of 55.5 sen with 32.1 million shares changing hands.
Whilst the company has relatively strong fundamentals, scoring 2.1 out of 3, valuations appear pricey, scoring just 0.5 out of 3.
Future earnings will be driven by capacity expansion. Phase 1 of its new manufacturing plant (adjacent to the current Chemor facility) is expected to be up and running by 2H2015 and would increase tablet and capsule capacity by 30%. By early-2016, tablet and capsule capacity would double from current levels.
For 1HFYJune15, revenue rose 14.4% y-y to RM97.1 million while net profit expanded 26% y-y to RM10.4 million, bolstered by forex gains from US$-denominated export sales.
Of interest, Kumpulan Wang Persaraan emerged as a substantial shareholder with a 5.04% stake in mid-April.
http://www.theedgemarkets.com
