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BIOALPHA HOLDINGS BERHAD
Current Price: 0.34 sen
Target Price: TP = 0.45 sen
WHAT KIM SAY?
"I have no doubt after I went through more details. I am captain for KGT, I did called my crew to onboard, so "The captain is last to leave a sinking ship". Lets see tomorrow another one Kaboom Stock!"
"Do you believe it? - Kim
WHAT THEY DO?
Bioalpha Holdings Berhad is an integrated health supplement company listed on Bursa Malaysia Securities Berhad. It is principally involved in agricultural development, research and development (R&D), manufacturing, distribution and marketing of functional food and health supplement products under Original Design Manufacturer (ODM) and Original Brand Manufacturer (OBM) basis, as well as operating a retail pharmacy chain under the brand “Constant”.
Their health supplement products comprise of processed herbs, formulated ingredients, functional foods as well as herbal and non-herbal health supplements, which offer a variety of health benefits including detoxification, remedy for cough and cold, boosting immune system, regulating blood glucose levels, enhancing eye, brain, joint and heart health, as well as beauty benefits such as anti-aging and weight management.
They deliver total solutions for their clients from product concept, design to manufacturing of the product. As an experienced manufacturer in the field of health supplements with deep technical know-how, our R&D expertise allows us to develop innovative and effective products that are based on research, utilizing the most suitable materials and latest production techniques.
SERVICES
1. Research & Development
Bioalpha has a skilled Research and Development (R&D) team working in a state-of-the-art modern laboratory, dedicated to creating customized products according to our customers’ specifications. Our R&D team, which consists of scientists, chemists, food technologists, nutritionists and pharmacists, has developed more than 300 functional formulations covering a wide range of different functions such as detoxification, remedy for cough and cold, boosting immune system, regulating blood glucose levels, enhancing eye, brain, joint and heart health, as well as beauty benefits such as anti-aging and weight management.
At the same time, they readily engage with research institutes to carry out pre-clinical studies, such as our ongoing project that focuses on the advancement of botanical drugs for treatment of type-2 diabetes and menopausal syndrome management. In addition, Bioalpha owns the intellectual property (IP) rights to its proprietary liquid fermentation technology, which provides competitive edge over their peers. The revolutionary technology allows them to produce biomass of medicinal mushrooms in 5 days as compared to 1 year if grown in the wild. Bioalpha has successfully commercialized 2 strains of medicinal mushrooms – Cordyceps Sinensis & L. rhinocerus (Tiger Milk Mushroom).
2. Processing & Manufacturing
Bioalpha’s manufacturing plant is capable of producing a wide range of products, from functional food to registered health supplements that carry the MAL registration number issued by the Ministry of Health. We can produce health supplement products in various forms such as powder, liquid, teabags, capsules and tablets.
Their manufacturing facilities are designed and constructed according to international pharmaceutical engineering guidelines of Good Manufacturing Practices (GMP) as well as Hazard Analysis and Critical Control Point (HACCP). Furthermore, their manufacturing plant together with all our health supplement products are certified Halal by the esteemed Department of Islamic Development Malaysia (JAKIM). Equipped with our GMP-certified plant, Bioalpha has the capacity, capability, compliance and commitment to deliver practical solutions to cater for different customers’ needs.
3. Contract Manufacuring
4. Retail & Marketing Distribution
They manufacture a wide array of products under their house brands – “Apotec” and “Nushine”. Each product is designed to address various health needs of different customers. Ther house brand products are largely distributed locally through their “Constant” retail pharmacy outlets which cover the central, northern and east coast region of Malaysia. They have more than 20 Constant retail pharmacies nationwide. Their products are also distributed overseas with China, Indonesia and Thailand as their key export markets.
WHY BIOALPHA?
I like is because of:-
1. Among the healthcare company still on laggard below 40 line which is more upside.
2. The effective gross profit (GP) margins for Bioalpha would be in the region of 2%-3%, given the nature of the job.
3. Bioalpha mainly source the required raw materials in China.
4. Bioalpha products will be supplied directly to GYHX, which will conduct further processing and packaging activities. For the annual contract value of RM426.7mil,.
5. Bioalpha will supply up to 100 stock-keeping units of active ingredients and formulations
6. The effective gross profit (GP) margins for Bioalpha would be in the region of 2%-3%, given the nature of the job.
FINANCIAL
BIOHLDG - The company is suffering net loss of 5.5mil for Mar'20 quarter. The main reason was due to covid-19. It has impacted this company operation and exporting to oversea especially China and Indonesia. As you look at this company quarterly trend Q1 will always soft in revenue and net profit. However, if you look at the overall of the company. The management is putting the effort on expanding its business. With recent announcement, the company has won a contract worth 2.1bil for 5 years. It contributes significantly revenue into this company annually RM426.7 mil start September this year subject to annual renewal. In overall, we expecting a recover from the coming June20 quarter due to May'20 resume the 100% operation and a very good second half for this year's.
KIM'S CHART
BIOHLDG - Bullish pattern. After few days accumulation. Today, it spike up and ready to fly. This has give you a very good signal it going test and break the resistance level at RM0.40. As the player still here to play and push the price higher. So what are you are waiting for!!! Buy before it breakout above 0.40. and pls don't wait it break 0.40 only decide to go in and you may loss a golden opportunity to buy at lower entry price.
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Best Regards,
KIM & CHEAH
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