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Overview
Financial Highlight
HeadlinesBusiness Background Pharmaniaga Bhd is an investment holding company. The company through its subsidiaries is engaged in manufacturing, marketing, and distribution of pharmaceutical and medical products. The company's principal activities include manufacturing of generic pharmaceuticals, logistics and distribution, sales and marketing, supply of medical products and services and hospital equipping and and trading and wholesaling of consumer products.
  ppginvest this counter at RM4 level all bankers already cabut... now just like MYEG before it's current recovery/uptrend mode(it's due to bankers are back to MYEG) 13/06/2018 22:17 ppginvest still falling knife, wait until it's reach bottom (no one would know this at the moment) 13/06/2018 22:22 jibbie pharmaniaga monopoly the medicine supply. i think the gov will end their monopoly soon https://www.worldofbuzz.com/govt-urged-to-end-pharmaniagas-monopoly-in-public-healthcare-to-reduce-prices-of-meds/ 13/06/2018 22:47 shpg22 https://www.thestar.com.my/news/nation/2018/06/13/multi-billion-ringgit-expose-of-medicine-monopoly-involving-politicians-senior-officials/ 13/06/2018 22:58 Unfair Multi-billion ringgit expose of medicine monopoly involving politicians, senior officials Read more at https://www.thestar.com.my/news/nation/2018/06/13/multi-billion-ringgit-expose-of-medicine-monopoly-involving-politicians-senior-officials/#VHbwObi21tRfKv87.99 14/06/2018 05:02 Valuespec From my experience working in purchasing department in government hospital, there are 2 purchasing system for medicine; 1. Approved Product Purchase List, APPL (concessionaire to Pharmaniaga) 2. Open tender (Through Bumi Agent as middle person) (https://www.thestar.com.my/news/nation/2018/06/13/multi-billion-ringgit-expose-of-medicine-monopoly-involving-politicians-senior-officials/#VHbwObi21tRfKv87.99). This system is for the purchase of items not being supplied by Pharmaniaga, usually for those patented expensive & imported medicine, yet rarely be used for treatment. In fact, this practice of supplied via bumi agent begun since 1990's. So basically this issue has nothing to do with Pharmaniaga, The market was just exaggerated & over reacted. As for APPL, honestly, Pharmaniaga does providing a fantastic job from sourcing, stocking & delivering medicine to 149 public hospital and over 2880 clinics around Malaysia (though its not 100% perfect). This is not an easy task as most of the clinic are actually located in suburban and rural area (especially those in sabah & sarawak), where delivery of the ordered medicine to those clinic is never been an easy task without a proper delivery channel, transportation network and inventory management system PHIS (Pharmacy Information System developed by Pharmaniaga, for use in public hospital & clinic) Bear in mind the transportation and inventory control of medicine is not the same and definitely not as easy as ordinary stuff as most of the medicine are heat sensitive which require special packaging & cold chain protection. This logistic segment require a lot of huge capex and its profit is not as lucrative as people might think of. That is probably the reason why other pharmaceutical distributor like DKSH & Zuellig Pharma (two of the major pharmaceutical product player in local market) had actually disposed off their logistic business segment few years back and outsource the delivery segment to other transportation company. However, the quality control on delivery of special item especially the medicine would probably be compromised as it is out of reach of their control. Whilst, Pharmaniaga stock up & deliver everything through their own logistic chain for a better control of the quality. Should the current government is to decide to terminate the concessionaire with Pharmaniaga (last till end of 2019), its definitely not easy for other pharmaceutical company to get the bid via tender as not many company are capable or willing to provide the same supply chain from sourcing, stocking & delivering to all public hospital & clinic, as it require very huge capital to develop the supply chain. That the reason why the APPL usually last for 10 years as to be fair to the company to get back the capital invested. Though general public might think of monopoly and corruption etc etc, especially Pharmaniaga is a GLC linked to Boustead Holding Berhad. (Just like the case of Astro monoply for pay-TV). In fact the Malaysian Pharmaceutical Society did appreciate Pharmaniaga for their effort and contribution over the 10 years. ( Having said that, we should also recognise the contribution of Pharmaniaga as they not only supply medicine, but also provide pharmacy information system for MOH and ensure pharmaceuticals are available across the country, Malaysian Pharmaceutical Society’s president said.) Also, Pharmaniaga only supply pharmaceutical product mainly medicines to public healthcare setting, worth around RM1.36 billion yearly in total. (Make sense in comparing to Pharmaniaga quarterly & yearly revenue). Pharmaniaga does not supply other non-pharmaceutical product like surgical and disposal items (mask, glove, needles etc etc). Over all which roughly make up to total of RM 4billion. Hope this explain the reason behind the issue by YB Tony Pua found that the Gov is paying RM4.1 bil. Btw, at current price of RM3.37, Pharmaniaga give a decent dividend yield of 5.6%, attractive among other local pharmaceutical player. 18/06/2018 13:43 Hafid CIMB Equities Research has upgraded Pharmanianga from Reduce to Hold with a target price of RM4.60 as the recent underperformance of share price in june 2018. CIMB Research also noted that Pharmaniaga’s management stated that it is in the process of finalising the extension of its concession agreement with the MOH, which is due to expire by 2019. “The group is confident of obtaining a 10-year extension, given its proven track record and extensive L&D network. The extension would be positive for earnings as it would lengthen the amortisation period for the Pharmacy Information System (PhIS) from four years to 14 years, which would lead to lower annual amortisation costs. Pharmaniaga is looking to expand its product portfolio by introducing 250 new products over the next 10 years. Although the research house believes that it is unlikely to reach this target in the slated time frame, it concurs that product launches are essential to support earnings growth for the manufacturing segment. 22/06/2018 15:42 GCHSP Hafid, the analysis you quoted predates the ongoing monopoly and tender agent controversy in drug procurement. It should be updated to reflect the current status. I do not expect the concession with MOH to be renewed in totality (certainly less than 10 years). It will probably be fewer drugs (much less than 700 drugs). This will definitely affect their revenue stream. 22/06/2018 16:52 Sebastian Sted Power https://youtu.be/RnOmGcCVnvA Obviously we can guess which companies lo. Hahahaha 22/06/2018 17:07 Hafid i will say ccm bio, pharma and other unlisted co. see on monday come down to 2.05 23/06/2018 14:29 jibbie so, now lodin confess that he is involved in 1mdb scandal. but he's just a small fry. small fry still a fry! pharmaniaga sure drop even further when he's proven guilty https://klse.i3investor.com/blogs/bfm_podcast/162520.jsp 25/06/2018 13:57 alpacino @Valuespec. They also maintain 3 months of essential drugs for national emergency stockpile. 25/06/2018 15:33 alpacino Very few know Pharmaniaga keeps drugs & med disposables for use during national disasters or war. 25/06/2018 15:40 alpacino No reason why govt should not extend the concession as they are doing an amazing job. Politics aside. 25/06/2018 15:43 Kawkaw Phar...critical already..runn...take 2 table before lunch..n..take 2 sfter super.. 26/06/2018 00:08 GCHSP Keep telling yourself that Hafid. LTAT should have sold instead of acquiring more stake. They are going to have either a much reduced concessionaire or drastically changed arrangement. But no more exclusive. 26/06/2018 19:17 Henry John Most importantly Pharmaniaga has a proper n working model of efficient system...now more on market n here say sentiments 27/06/2018 10:40 Ravichandran Govin Sell fast guys, the company had been linked to graft and corrupt practices which is under SPRM investigation. This ex Umno bureaucrats company is falling apart due to the elimination of monopoly by new PH govt. They sell higher to govt to govt based on comparison with Guardian Pharmacy and Caring Pharmacy price. Screwed up, these umno buggers corupt the BN govt fr Rm4.5 billion consession but finally cought and shares expected to reach 1.10 by 1weeks. 28/06/2018 10:31 Ravichandran Govin Another BN company should close up soon most of its activities and businesses in Msia, their 23% market share in Indonesia drug industry is also being reviewed , scrutiny is on the verge of destruction 28/06/2018 10:34 Murtadza Abu Bakar Govin if the price does not reach 1.10 in 1 week time, can you please PLEASE let me cut both of your balls an make it into kebabs? What an idiotic arguments. 03/07/2018 17:02 alpacino Health Ministry maintains Pharmaniaga’s supply contract - https://themalaysianreserve.com/2018/08/06/health-ministry-maintains-pharmaniagas-supply-contract/ 06/08/2018 16:41 alpacino With this news yesterday -Just a matter of time price will be RM4 as prior to election. 07/08/2018 12:11 Hafid ong-serving CEO may leave following the appointment of new chairman ARMED Forces Fund Board (LTAT) is expected to face a shake-up that includes the departure of its long-serving chief executive officer Tan Sri Lodin Wok Kamaruddin, according to people familiar with the matter. It is said that the changes in the LTAT follows the appointment of its new chairman, Tan Sri Mohd Zahidi Zainuddin, this month. Sources say there are a few candidates earmarked to take over from Lodin as the CEO of LTAT. image: https://content.thestar.com.my/smg/settag/name=lotame/tags=Int_Automotive_Affluent,all,Int_Property,Demo_Gender_Male_enr,Int_Lifestyle_Health_Fitness,Demo_Gender_Female_enr,Int_Travel,Int_Travel_Budget,Int_Property_Designer_Home,Int_Travel_Business,Int_Entertainment,Demo_Age_35to44_enr,Int_Automotive,Int_Business_Finance_Investors,Int_Property_Investment,Int_Business_Finance_SME,Int_Business_Finance,Int_Property_Affluent,Int_Tech_Telco,Demo_AffluentAudience LTAT, a government-linked investment company (GLIC), manages about RM10bil funds. The other GLICs are Khazanah Nasional Bhd, Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), Retirement Fund Inc (KWAP) and Lembaga Tabung Haji (LTH). Recently, Khazanah saw the departure of its long-serving managing director Tan Sri Azman Mokhtar, who has since been replaced by Datuk Shahril Mohd Ridza of the EPF. Last month, all nine members of the Khazanah board tendered their resignation letters, paving the way for the government to replace a new team at the helm, headed by Prime Minister Tun Dr Mahathir Mohamad. Meanwhile, Tunku Alizakri Alias has been named the new CEO of EPF, the country’s biggest retirement savings fund with over RM800bil worth of assets. Lodin has helmed the top post in LTAT since 1982. He is known to spearhead the fund’s activities to undertake various programmes for the Armed Forces such as affordable housing and the setting up of outlets selling basic groceries just for the staff members. However, in recent years, he is better known as the former chairman of the controversial 1Malaysia Development Bhd (1MDB), which is currently under investigation for alleged misappropriation of funds amounting to billions of ringgit. He relinquished his position in 2016. LTAT has in 2016 filed a suit against PKR vice-president Rafizi Ramli, who had allegedly implied the board had no money to pay gratuity to ex-servicemen. But LTAT withdrew the suit in less than two weeks after May’s general election. With an asset under management of around RM10bil, LTAT is considered the smallest among the GLICs. Despite the size, the fund owns controlling stakes in several listed companies – Boustead Holdings Bhd image: https://cdn.thestar.com.my/Themes/img/chart.png , Affin Bank, Boustead Plantations Bhd image: https://cdn.thestar.com.my/Themes/img/chart.png , Boustead Heavy Industries Corp image: https://cdn.thestar.com.my/Themes/img/chart.png Bhd (BHIC) and Pharmaniaga Bhd image: https://cdn.thestar.com.my/Themes/img/chart.png . It is worth noting that Lodin, 69, is also the managing director and deputy chairman of Boustead Holdings Bhd, which is controlled by LTAT via its 60% stake. Lodin is also the chairman of BHIC and Pharmaniaga Bhd, as well as vice-chairman of Boustead Plantations. LTAT owns more than 45% stake, directly and indirectly, in BHIC, Boustead Plantations and Pharmaniaga. As such, the changes in the management of LTAT would impact the management of its four investee companies. In the past three years, LTAT announced an average dividend and bonus of 12.5%. This is higher compared to the average yearly dividend and bonuses of 11.3% paid out since its establishment some 45 years ago. LTAT was established in 1972 to provide retirement and other benefits to the members of the Armed Forces via a compulsory savings scheme. Members of the Armed Forces, numbering around 200,000, contribute 10% of their salary, with the government contributing 15%. Lodin has been at the helm of LTAT for more than 36 years. Hence, it would be an interesting development to inject new blood into the fund. Many may not know Nik Amlizan of KWAP and Suzana of Socso, but they are no strangers in the investment communities. Nik Amlizan has been the CIO of KWAP, which has RM125bil of assets under management, since September 2014. It was said that she was groomed to be the next chief executive officer of KWAP. Nik Amlizan has over 20 years of experience in the fund management industry. Prior to joining KWAP, she was the head of equity for RHB Asset Management Sdn Bhd. She is currently sitting on the board of Prestariang Bhd image: https://cdn.thestar.com.my/Themes/img/chart.png , Prima Ekuiti (UK) Ltd and i-VCap Management Sdn Bhd. She is a member of the Malaysian Institute of Integrity since 2015. She obtained her bachelor’s degree in economics from Claremont McKenna College, the United States. Meanwhile, Suzana is currently the CIO of Socso, a po 18/08/2018 09:50  necro I obtain info that when Pharmaniaga contract ended ,the purchasing of medicines will be buy through direct purchase with Pharmaniaga still managing PHiS... So Pharmaniaga like others pharma company must compete & not depend on government contract to fatten their pocket... LTAT must move out from shadow that Pharmaniaga who once were their cash cow now were only old cow.. 18/08/2018 12:58 Hafid Ltat still depand on pharma for dividend. So worse come to worse is the business but pharma still will be the primary one. 19/08/2018 10:46  |
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