Hot Stock Shares of Pharmaniaga down 2.3%

by **Cals** Tue 18 Aug 2015, 20:26

Hot Stock
Shares of Pharmaniaga down 2.3%

KUALA LUMPUR (Aug 18): Shares of Pharmaniaga Bhd are down 13 sen or 2.3% after it reported a lower revenue in second quarter ended June 30, 2015 (2QFY15).
As at 10.47am, Pharmaniaga (fundamental: 0.75; valuation: 1.70) was trading at RM5.52 with 416,100 shares traded.
Its share price gives it a market capitalisation of RM1.43 billion.
Pharmaniaga’s current share price is a 24.39% decline compared to the one-year high of RM7.39 achieved at end-April 2015.
The pharmaceutical company reported a 2.3% decline in revenue of RM512.85 million for 2QFY15, compared to RM525.07 million for the same period a year ago.
Revenue for the six-month period (6MFY15) also dropped by a marginal 0.91% to RM984.75 million, from RM993.74 million a year ago.
Its net profit for 2QFY15, however, saw a 1.5% increase to RM16.22 million from RM15.98 million a year ago, on higher profit margins from the manufacturing division.
Its 6MFY15 net profit also saw a 13.8% increase to RM48.01 million from RM42.19 million in 1HFY14, largely due to favourable profit margins from the manufacturing division.
Meanwhile, CIMB Research has upgraded Pharmaniaga Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) to “hold” (from “reduce”) at RM5.65 with a lower target price of RM6 (from RM6.70) and said Pharmaniaga’s 1H15 net profit broadly met expectations, at 45% of house and consensus full-year forecasts.
In a note Aug 17, the research house said Pharmaniaga declared a dividend of 7 sen per share, which was also in line with house estimate.
“We cut our FY15–17 EPS by 3% after updating our earnings model, which leads to a lower SOP-based target price of RM6.00.
“However, we upgrade Pharmaniaga to 'hold' from 'reduce' as its share price looks more palatable now, following the 17% decline since end of last month.
“Its decent dividend yield of 5.5% should lend support to its share price,” it said.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)