Hot Stock Hovid rises 4% on brighter prospects

Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 05 December 2013 10:59
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KUALA LUMPUR (Dec 5): Hovid Bhd rose as much as 4% after analysts said
shares of the pharmaceutical product manufacturer are showing better
technical indicators. This comes amid brighter business prospects for Hovid.
At 10.47am, Hovid was traded at 35 sen with some 10 million shares done. The
bourse's fifth most-active stock had earlier risen as much as 1.5 sen to 36 sen.
In a note today, Hong Leong Investment Bank Bhd research head Low Yee
Huap said Hovid shares' technicals "are on the mend".
Low said Hong Leong likes Hovid "for its strong R&D capability and
manufacturing standards coupled with earnings growth potential and resilient
earnings".
This is in anticipation that Hovid will benefit from the "patent cliff".
The patent cliff refers to the expiry of patents of best-selling pharmaceutical
products with US$133bn (RM430 billion) worth of annual sales worldwide over
the next five years.
According to Low, the expiry will enable generic pharmaceutical product
manufacturers like Hovid to enter the once-protected segments of the
pharmaceutical market.
Meanwhile, BIMB Securities Sdn Bhd said Hovid's share price's immediate
technical support and resistance are seen at 34.3 sen and 34.8 sen
respectively.