Pharmaniaga’s lucrative COVID-19 vaccine sparks demand for its stock
ON Monday (May 31), Pharmaniaga Bhd – out of the blue – soared sky high to close limit up RM1.51 or 29.84% at RM6.57 with a volume of 16.6 million shares.
But the price was not sustainable as the stock gave up 83 sen or 12.63% of its previous day’s gain yesterday (June 1) – despite hitting an intraday high of RM7.25 – in view of heavy profit taking activity to close at RM5.74.
The spike of Pharmaniaga’s stock price could be attributed to the profitable vaccine business considering that the manufacturing and distributor of pharmaceutical and medical products has received a request to supply seven million doses of the Sinovac COVID-19 vaccine to government-linked companies (four million) and state governments (three million).
As shared by Hong Leong Investment Bank (HLIB) Research, Pharmaniaga has an expected supply pipeline of 24 million doses of Sinovac vaccines (14 million from their fill and finished operations and 10 million finished doses) to distribute with only 12 million promised to the Health Ministry (MoH).
Based on its back of the envelope calculation, HLIB Research expects the fill and finish of 14 million doses to add circa RM15.5 mil at Pharmaniaga’s earnings before interest and taxes (EBIT) level.
“This is based on (i) purchase price of US$11 (RM44) per dose (given that Indonesia had purchased completed Sinovac vaccines for US$13.60/dose) (according to source); and (ii) EBIT margin of 2.5% based on three-year average logistics and distribution EBIT margin,” explained analyst Gan Huan Wen in a company update.
“While we have yet to factor in the financial impact of the additional 10 million finished doses ordered recently, we expect the earnings impact to be minima; as the nature of these will be purely trading, we reckon the margins will be razor-thin.”
As the latest announcement comes as no surprise, HLIB Research’s forecast on Pharmaniaga have remained unchanged.
All-in-all, the research house downgraded Phramaniaga to “hold” (from “buy” previously) but retained its target price at RM5.52 pegged to 21.5 times price-to-earnings ratio (PE) on FY2022.
“We reckon its fair value has been reached. Note that the share price has surged 80.5% since April 2021,” added HLIB Research.
At 12 noon, Pharmaniaga was up 9 sen or 1.57% to RM5.83 with 6.28 million shares traded, thus valuing the company at RM1.53 bil (the stock has been traded between RM5.82 and RM6.32 thus far today). – June 2, 2021
But the price was not sustainable as the stock gave up 83 sen or 12.63% of its previous day’s gain yesterday (June 1) – despite hitting an intraday high of RM7.25 – in view of heavy profit taking activity to close at RM5.74.
The spike of Pharmaniaga’s stock price could be attributed to the profitable vaccine business considering that the manufacturing and distributor of pharmaceutical and medical products has received a request to supply seven million doses of the Sinovac COVID-19 vaccine to government-linked companies (four million) and state governments (three million).
As shared by Hong Leong Investment Bank (HLIB) Research, Pharmaniaga has an expected supply pipeline of 24 million doses of Sinovac vaccines (14 million from their fill and finished operations and 10 million finished doses) to distribute with only 12 million promised to the Health Ministry (MoH).
Based on its back of the envelope calculation, HLIB Research expects the fill and finish of 14 million doses to add circa RM15.5 mil at Pharmaniaga’s earnings before interest and taxes (EBIT) level.
“This is based on (i) purchase price of US$11 (RM44) per dose (given that Indonesia had purchased completed Sinovac vaccines for US$13.60/dose) (according to source); and (ii) EBIT margin of 2.5% based on three-year average logistics and distribution EBIT margin,” explained analyst Gan Huan Wen in a company update.
“While we have yet to factor in the financial impact of the additional 10 million finished doses ordered recently, we expect the earnings impact to be minima; as the nature of these will be purely trading, we reckon the margins will be razor-thin.”
As the latest announcement comes as no surprise, HLIB Research’s forecast on Pharmaniaga have remained unchanged.
All-in-all, the research house downgraded Phramaniaga to “hold” (from “buy” previously) but retained its target price at RM5.52 pegged to 21.5 times price-to-earnings ratio (PE) on FY2022.
“We reckon its fair value has been reached. Note that the share price has surged 80.5% since April 2021,” added HLIB Research.
At 12 noon, Pharmaniaga was up 9 sen or 1.57% to RM5.83 with 6.28 million shares traded, thus valuing the company at RM1.53 bil (the stock has been traded between RM5.82 and RM6.32 thus far today). – June 2, 2021
Have to plug in the hole of missing billions and missing naval ships in parent Boustead Holdings.
ReplyDeletehttps://www.theedgemarkets.com/article/newsbreak-boustead-seeks-more-funds-complete-rm9-bil-lcs-project
With so much Bully vaccines on order DaGe can enter and leave our airspace as she pleases.
ReplyDeleteSo did Hisham summon Bully ambassador to scold him or to say “XieXie DaGe”?
Note that Hisham was a former Defence Minister so he knows all about missing Boustead navy ships and Pharmaniaga.
Wakakakakakaka…
DeleteSo did Hisham summon Bully ambassador to scold him or to say “XieXie DaGe”
What a aneh-ised blurred fart!
Pharmaniaga is really no more than a glorified F&N Sarsi bottler, taking bulk vaccine liquer from DaGe, and filling into vials.
ReplyDeleteAnother exercise in rentier business.
Ill gained blood money!
ReplyDelete吃血腥曼斗!
communist biz model
ReplyDeleteWakakakaka…
DeleteRunning out of label for yr fart?
How about this:
DemoNcratic model formed out of capitalism!
Profit first, life last. Especially the olds & the helpless.
More like the Formosa tSai model...lying about China blocking vaccine to her people...very typical of the DEMON-cratic way of blaming someone else for own stupidity, just like her mentor tRrump who is even now lying to his 74 crazed supporters that he will be reinstated this August, hahahaha, long time since Covid I had such a hearty laugh.
DeleteAs of 8 days ago, only 1.3% of Taiwanese received the first dose of vaccine....and the people's anger is palpable. That very tyrannical Demon-cratically elected President is in her most tSai ( SHIT ) mode....she would rather her people die than to receive help from the Mainland to get her people the desperately needed vaccine. Stories abound that some Taiwanese had been flying into Shanghai to be vaccinated and other parts of Mainland too. Obviously these smarter ones refused to die just to please that big shit tSai con-woman.
capitalist under democracy make profit out of their own creation n innovation, communist under authoritarian n gajibuta profit from other people creation n effort, know the diff?
DeleteEvery capitalist sucking blood out of the misery of its underlings! WITHOUT exception!
DeleteSo, what so 'domocratic' in that? It's all just demoNcracy in disguised for the f*cking show u want to seek!
Communist with Chinese characteristics create everything out from ground zero, from all the possible sanctions elected.
U know the differences?
Obviously, u only want to see the solution u want to seek!
Mfer, journey is the beginning. Destination is the target.
For u, label is all about ending. The final well-being ain't yr concerned goal.
People can die like falling bricks, while they march to yr demoNcratic song, sung by the privileged elites.
Just remember, u ain't in that selected group. U r just their expensable runner of inconsequential!
ah jerk, twnese can exercise their right to kick out that dpp bitch in next election, zombie in ccpland cant.
Deleteah cunt, ccpland is apparently a capitalistic state, both billionaire n poverty number easily beat usofa.
Wakakakakaka…
DeleteIndeed, those f*cked twnese (mind u not all of them) can exercise their right to kick out that dpp bitch in next election. & replace with an equally incompetent kmt or whatsoever f*cked label political party to lead them to hell.
Lies after lies yet still want to regurgitate that CCP China holds no election!
China is a socialistic country built with Chinese characteristics that no other country in the world can copy. She has to be different from yr demoNcratic & capitalistic invention. The election u pretended not to address is inbuilt within that system.
Furthermore, in humanistic term, what's a political label if that governing authority COULDN'T ensure peace, prosperity well-being of the people under her jurisdiction?
For a mfering katak like u, the ultimate well-being of the populace isn't the point, the political label is yr f*cking aim. Anytime, anything with demoNcratic tag with cruel & inhumanely policies r better than a socialistic regime with good governance in yr f*cked wet dream.
Wealth isn't confined only to capitalistic idea. It's a product of marketing economy, no the sole monopoly of capitalism.
Socialistic system can have unequal wealth distribution as that's how human nature dictates that rule. But socialist works to equalize the difference between the classes until a classless dream can be achieved. It's a tall order, & the old Lenin-ised approaches has failed. The Chinese version is still evolving & is currently showing commendable results all-over!
So what's wrong when China has more billionaires than US eventually? It only means the poors would also fair much much better than their counterpart in US!
But u won't be able to fathom. So this isn't for yr understanding. Keep to yr demoNcratic capitalism & make sure u always have a wealthy master to fall back under that fart filled well. Remember after all the katak croaking, u r just an expendable runner of inconsequential!
This kerajaan so zalim. Rakyat suffering and even dying but they look to profit from vaccines. Sinopharm, Sputnik registered yet?
ReplyDelete