PHARMA (7081) - Stocks With Momentum: Pharmaniaga
Pharmaniaga Bhd (+ve)
PHARMANIAGA (Fundamental: 0.75/3; Valuation: 2.1/3) has gained 40 sen or 8.7% to RM4.98 since the beginning of the year. The GLC-linked company is likely to benefit from higher government spending for healthcare, with some RM 23.3 billion allocated for Budget 2015, up from RM22.1 billion last year.
In 2013, it derived 75% of its revenue from its key client, the Ministry of Health (MOH), and 21% from Indonesia. Pharmaniaga has a 10-year concession agreement expiring in 2019 to supply pharmaceutical products to MOH.
For 9M2014, net profit soared 66.2% to RM57.1 million on back of an 8.5% increase in revenue. Moving forward, it seeks to expand internationally and grow its in-house generic drug manufacturing operations.
Gearing was relatively high at 65.4% with net margin of 3.8%. The stock trades at a trailing 12-month P/E of 16.4 times and 2.5 times book. Dividends totalled 20 sen last year, giving a yield of 4.0%.
This article first appeared in The Edge Financial Daily, on February 16, 2015.
http://www.theedgemarkets.com
Pharmaniaga Bhd (+ve)
PHARMANIAGA (Fundamental: 0.75/3; Valuation: 2.1/3) has gained 40 sen or 8.7% to RM4.98 since the beginning of the year. The GLC-linked company is likely to benefit from higher government spending for healthcare, with some RM 23.3 billion allocated for Budget 2015, up from RM22.1 billion last year.
In 2013, it derived 75% of its revenue from its key client, the Ministry of Health (MOH), and 21% from Indonesia. Pharmaniaga has a 10-year concession agreement expiring in 2019 to supply pharmaceutical products to MOH.
For 9M2014, net profit soared 66.2% to RM57.1 million on back of an 8.5% increase in revenue. Moving forward, it seeks to expand internationally and grow its in-house generic drug manufacturing operations.
Gearing was relatively high at 65.4% with net margin of 3.8%. The stock trades at a trailing 12-month P/E of 16.4 times and 2.5 times book. Dividends totalled 20 sen last year, giving a yield of 4.0%.
This article first appeared in The Edge Financial Daily, on February 16, 2015.
http://www.theedgemarkets.com
