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)
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.
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.
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.
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
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.
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.
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
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.
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Posted by Yu_and_Mee > 2018-06-10 21:20 | Report Abuse
tomorrow limit down?