Biohldg 11sen
Target price 19.5sen
PE 10.5x
Net asset 19c
www.bioa.com.my
Bioalpha's substantial shareholders were William Hon Tian Kok with an 18.4% stake as at Aug 2, Perbadanan Nasional Bhd with 14.93% as at April 6 and Khazanah Nasional Bhd's wholly-owned Malaysian Technology Development Corp Sdn Bhd with 13.24% equity interest as at March 30.
The Group expects the operating environment to remain challenging for both local and
overseas markets, in line with the prevailing cautious consumer spending, with uncertainties
arising from geopolitical tensions and coronavirus ("Covid-19") outbreak. Against this
backdrop, the Group remains focused on strengthening the manufacturing of health
supplement products and retail pharmacy businesses while keeping cost in check.
For the domestic manufacturing business, the Group continues its efforts to secure new
Original Design Manufacturing ("ODM") customers, while servicing our existing ones. We
expect the local ODM market to pick up going into FY2020.
Nonetheless, in the short term, concerns still remain following the unexpected Covid-19
outbreak. We have since experienced a surge in sales at our Constant pharmacy outlets for
hygiene-related items such as surgical masks and sanitizers, as well as our immunity-related
health supplement products. However, the overall impact of the situation can only be
assessed in the coming months. We are monitoring the outbreak closely and are taking
proactive steps to manage any situation arising from it.
As for our export business, in view of the current developments and Covid-19 outbreak, the
Group expects export sales to pick up in the second half of the year. Specifically in China, the
Group continues to work closely with distributors and partners there. Progress in Indonesia,
on the other hand, had been muted in FY2019 due to slower-than-expected regulatory
approvals for the health supplement products. The Group foresees revenue from Indonesia
to pick up once more approvals are secured in FY2020.
https://klse.i3investor.com/blogs/musfaz/2020-04-18-story-h1506018527-Biohldg.jsp
