Leonard Ariff Abdul Shatar, group managing director of CCMD (fundamental:3; valuation: 0.9), said the company is optimistic on its performance for 2015, despite the challenging overall economic outlook.
“We are still bullish for the year. One of the reasons would be due to the APPL tender, which started in June 2014.
“That was reasonably successful, and obviously this year, we will have the full-year impact of the tender, as opposed to the half year last year,” said Leonard at a press conference, following the company’s 14th annual general meeting (AGM) today.
Besides that, Leonard said continued contributions from the government sector, which made up 68% of its revenue in 2014, will also support the company’s performance for its current financial year.
“That may seem a bit high, but the government consumes almost 70% in generics. So even at 68%, we are quite balanced, suiting the demand from the government side,” he explained.
For FY2014 ended Dec 31, CCMD posted revenue of RM176.96 million, up 8.9% from RM162.41 million a year earlier; while net profit climbed 9.3% to RM35.28 million, from RM32.28 million.
On CCMD’s plans for the year, Leonard said the company will be undertaking a capacity expansion for its sole facility in Klang, which is currently able to produce 2 billion tablets annually.
He said the exercise, which will include the purchase of some new equipment and some civil infrastructure works, will cost between RM40 million to RM70 million, and will result in a 50% expansion in the facility’s capacity.
Meanwhile, the company will be have two more facilities in Bangi and Glenmarie respectively, following the completion of the acquisition of six subsidiaries from its parent, Chemical Company of Malaysia Bhd (CCM) (fundamental: 0.35; valuation: 1.2).
CCMD share price dropped 0.5 sen or 1.26% at RM3.92 today, for a market capitalisation of RM553.73 million.
CCMDBIO (7148) - CCM Duopharma aims for higher revenue in FY2015
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