I will accumulate when the price getting lower. The is still a lot of uncertainty in the market especially coming month. Last year Feb, very few people really look positive about this counter.
already up from 4.10 level last year. so watch out. need huge capex for the expansion of the opening of pharmacy outlet. i think safe buy at below 4.00
The biggest distributor of medical products to Malaysia's MOH . >>>>>>>>A strong defensive play support by decent yield!<<<<<<<<
>>>>>>>> A safe haven for investors given its recession proof nature!<<<<<<<<
--Best-known as the biggest distributor of medical products to Malaysia's MOH (Ministry of Health), supplying 50% of the Ministry's needs.
-4Q should be stronger. Expect sales to recover in 4Q as MOH’s hospitals and clinics replenish their inventories.
-Earnings growth for Pharmaniaga should remain resilient despite the presence of rising costs pressures, subdued consumer sentiment and economic uncertainty.
-Valuation is considerably attractive compared to other pharmaceutical-related stocks. Expects higher contribution from its Indonesia and non-concession segment in 2016.
-Decent dividend yield between 4.8% to 5%.
*****Earnings driver for the group would be:*****
(a)Contribution from its three teaching hospitals;
(b)European Union Good Manufacturing certification which would provide the group with stronger footing in European market. Pharmaniaga could see another period of strong earnings growth in 2016 (+33% yoy to RM116m) as its small-volume injectable (SVI) plant should receive approvals from the EU authorities for the sale of its SVI products to the EU market by then.
(c)Beneficiary of patent cliff . The group is also set to benefit from a "patent cliff" − the expiry of patents for bestselling drugs with US$133bn annual sales worldwide over the next 3 years. The patent cliff will allow generic drug makers such as Pharmaniaga to enter once-protected segments of the pharmaceutical market via the introduction of generic versions of the patented drugs;
(d)Growth exposure in the healthcare and pharmaceutical industry supported by an ageing population.
(e)Concession agreement (CA) is the jewel in the crown. Defensive earnings as the sole concession holder to purchase, store, supply and distribute drugs and medicinal products to 148 government hospitals and 1,400 clinics, The concession agreement ends in Nov 2019 and allows for upwards revision in prices every three years.
(f)To benefit from the RM4.6bn allocation stated in Budget 2016 to supply medicines, consumables, vaccines and reagents to all government hospitals and clinics.
Below expectations due to higher amortization for its Pharmacy Information System of Rm26.4m(PhIS) and lower than expected government orders. PBT declined 10.4% to RM112.5m.
Pharmaniaga’s manufacturing division charted higher PBT by 17% (FY15: RM109.5m vs. FY14: RM93.7m) resulting from better productivity and efficiency as well as cost management.
Pharmaniaga has spent c.RM170m to install the PhIS in government hospitals. This amount was capitalised and will be amortised over the tenure of its concession agreement (expires in Nov 2019).
FY16 earnings could remain unexciting due to: -Sales growth could be capped by the government’s budget recalibration. -The amortisation charges related to the PhIS will continue to suppress its profit margin.
i think today is the chance to buy. High dividend, can hold for long. i think healthcare/ medic sector will be very strong in the future. its my own view only. :)
While external economic pressures will continue to persist in 2016, there are bright prospects for the pharmaceutical sector that the Group is well positioned to tap into. A clear reflection of this are the initiative outlined in the National Budget 2016, which include a higher allocation for vaccines and medicines, an increase in the number of GST zero-rated medicines, as welll as more clinics and hospitals to be built nationwide.
In addition, the group aims to expand it's presence in the European Union via it's product portfolio, which is undergoing the necessary review and registration process. It also intends to mould it's Indonesian manufacturing subsidiary into and important manufacturing and export hub for the ASEAN region.
The Group is focused on leveraging on these opportunities by enhancing and diversifying its products and services to meet the growing needs of the healthcare industry, both in Malaysia and International markets.
external economic pressures will only make more people to do panic selling.........people will not think much of fundamental for this counter....no doubt, price will drop if panic selling happen
@ruby that's just my opinion. Based on the historical charts, share price will dropped after dividend entitlement date then it will increase back, however pharma is walking down trend recently. For short term, shouldn't consider this company, for long term, yes.
Yes, of course. The management will solve the operating cost high problem. See the revenue keeps increasing. Likewise for dividends. One time profit down does mean it will always down. Refer to Media as an example.I got only 2000 units. Thinking of buy more.
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Posted by Investeye > 2015-04-21 20:28 | Report Abuse
I will accumulate when the price getting lower. The is still a lot of uncertainty in the market especially coming month.
Last year Feb, very few people really look positive about this counter.