Bioalpha Holdings Bhd (Oct 19, 25.5 sen) Maintain add with a target price (TP) of 44 sen: Bioalpha Holdings Bhd recently announced that it had entered into a memorandum of understanding (MoU) with Jinrui Fortune Holding Group (JRFH) for several proposed collaborations, developing an integrated “Thousand Medicinal Hall” platform, which will provide consultation given by top traditional Chinese medicine (TCM) practitioners in China.
JRFH will collaborate with Bioalpha to expand JRFH’s business in Malaysia, and Bioalpha will collaborate with and participate in JRFH’s Chenzhou (Hunan) Integrated TCM Project, which includes the development of herb farms, a product research and development facility, and a Good Manufacturing Practice-certified factory. Bioalpha will collaborate and participate in JRFH’s project to develop eco-health tourism in Chenzhou city, Hunan province, China.
JRFH is an integrated TCM company based in Shanghai, China, and is currently operating medical halls in Shanghai, Beijing, Shenzhen and Hefei. JRFH has around 50,000 members in its loyalty programme and the company eyes to have a network of 1,000 medical halls in China by 2025.
We see the MoU announcement as positive for Bioalpha as we believe the company could leverage on JRFH’s distribution network in China to promote its herb products to be used by TCM practitioners to treat their patients. This should help boost Bioalpha’s product sales as well as its brand profile in China.
Bioalpha has two successful herbal plantations in Pasir Raja, Terengganu, and Desaru, Johor respectively (combined area: 1,300 acres [526.09ha]).
We have maintained our earnings per share forecasts and TP, based on 20 times calendar year 2019 forecast price-earnings ratio (PER), a 20% discount to our consumer-sector target PER of 25 times. Potential catalysts include strong, sustained domestic revenue growth and the signing of a working agreement with JRFH. Downside risks include continual weak export revenue. — CGSCIMB Research, Oct 18
*Company Profile* • BIOHLDG is involved in the manufacture and sale of health supplement products.
*Trading Catalyst* • BIOHLDG has grown to become an integrated biotechnology company with businesses comprising all segments of the supply chain (eg in-house cultivation of raw materials, R&D, ODM, distribution and pharmacy chains). • Valuations are undemanding at 9.6x FY19 P/E and 1.5x P/B (34% and 20% lower than its bigger cap peers). More synergies are coming from the recent proposed NWE’s acquisition to distribute its products to hotels all across the country as well as the MOU with Jinrui Fortune Group, China to jointly develop “Thousand Medicinal Hall” platform and herbal farms in China. • Following the weekly bullish LT downtrend line breakout and double bottom formation, we expect more upside to RM0.30-0.335 pending a flag breakout.
KUALA LUMPUR (Oct 30): Caring Pharmacy Group Bhd, which crossed the half-billion ringgit mark in sales last year, said it will spend RM6 million to RM8 million to add another 12 to 15 outlets this financial year ending May 31, 2019 (FY19), with more focus placed on second-tier cities.
In FY18, the group opened nine new community pharmacies, boosting its total outlets to 115 nationwide.
. Don't understand if no confident should just diam diam and quit the counter. rather waste gas here. Any comment even not good one are welcome . But be constructive and informative.
That's why I advise u all don't buy in I bought since 2015 and hold until now and still haven earn any Need to hold at least 5 year only can see the reward If u cannot wait, sell and run
We all long term investor are all well aware of the right issue and esos problem But if u look at bright side, right issue money is all use in business expansion, acquisition and development Unlike so many other company which use right issue in pay down debt Company have many growth engine and in resilient sector ( Healthcare sector) Net cash company Event pp investor are investing in high price of 0.24 U think the pp investor don't know the risk of putting in 11million? What are we compare to them?. If they so confident putting in multi million, what's our risk compare to them?
Last but not least, sell if you not confident The end
Once we decided in investing in, should have more confident and have due diligence in our own investing If biohldg business is regressing, no doubt I will also cut loss But now it's expanding New business is growing Be more confidence in ur own investment
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New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Posted by nbrlatex > 2018-10-22 11:39 | Report Abuse
Esos ?