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Is HOVID( PN17) really coming up this time ?question
16 Jan 2012, 08:11 PM
Today Hovid uplifted the PN17,is price can going up ?
17 Jan 2012, 08:39 AM
Look good for the Q price, but be careful in case any profit taking
17 Jan 2012, 08:47 AM
31 Dec 2013, 05:13 PM
CIMB Research keeps Hovid target price at 43 sen

KUALA LUMPUR: CIMB Equities Research is maintaining its Add call for Hovid and target price of 43 sen, which is 23.1% above the last traded price of 35 sen.

It said on Tuesday that despite meeting just 39% of its full-year forecast and 33% of consensus numbers, Hovid’s 1HFY6/14 core net profit was broadly in line with expectations as 2H should be stronger due to seasonally higher sales and the weaker ringgit which will boost exports.

“We maintain our Add call, earnings forecasts and SOP-based target price. Increased product registrations in export markets and stronger 2H earnings could spark a re-rating,” it said.

CIMB Research said Hovid's 2Q net profit fell 13% on-year to RM3.7mil because a higher portion of its sales came from lower-margin products. This led to a fall in EBITDA margin from 17.6% a year earlier to 14.4%.

“We suspect that EBITDA margin may also have been crimped by higher operational costs, probably due to the introduction of the minimum wage policy early last year.

“We expect Hovid to report stronger earnings in 2H due to seasonally stronger sales. On top of that, Hovid is a beneficiary of the weak ringgit because half of its revenue is derived from export sales, which are predominantly quoted in US$.

“The ringgit has averaged 3.31 to the greenback year-to-date, 3% weaker than the average in July-December 2013. The company is also actively pushing its export sales by registering its existing products with the health authorities in the export markets.

“It plans to roll out 10-15 products this year, which should expand its existing 400-strong product range by 3-4%. Increased registrations of Hovid's drugs in its export markets will spur demand as more products are made available in these export markets. This will help to widen its profit margin and lead to higher profitability,” it said.

CIMB Research said it likes Hovid's strong long-term earnings growth prospects as the pharmaceutical markets in Malaysia and its key export destinations are set to grow at double-digit rates, driven by ageing populations and greater access to healthcare services and medicines.

Hovid remains its top pick for exposure to the Malaysian healthcare sector. Potential re-rating catalysts are increased product registrations in its export markets and stronger 2H earnings.
25 Feb 2014, 03:37 PM
13 Apr 2015, 04:57 PM

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