If analyst in detail, the financial statement actually reveal that the company is having better result, the net profit reduction is caused by earning from property revaluation last year. Actually the operation of Hovid is improved if you look at total revenue, market share, and operating cash flow, plus others info that indicate Hovid is spending a lot on business expansion.
Annual report 30.06.2014. Pls read the chairman statement and analysis the top 30 shareholders. The future prospect for hovid is bright and more corporate shareholders compare with last year.
Yeah got 2 vouchers ,for 150K shares.Ok! at least something to sweeten. It is long termholding.I have beenbuying since 2007. Only sold some at 45. then rebought at 41. no regrets.Wait for dividend.
Daily volume a few hundred thousand shares, price stable around 37 to 38 sen. Thinking of adding and hold until 2015 for more news on patent cliff, which has been very very quiet lately. No talk about the company plans to take advantage of this. Maybe more info at the AGM.
DOnt wait for patent cliff - basically it is happening already. When a patent ends, profits are made by the manufacturer due to lesser costs of producing medicine. What one needs to do is to check see how many drugs whose patents will end in next 12 - 18 months and that will roughly give an idea of how much company will make.
HOVID (7213) : CIMB Research upgrades Hovid to Hold, target price 41 sen KUALA LUMPUR (Nov 26): CIMB Research has upgraded Hovid Bhd to Hodl (from Reduce) at 38 sen with an unchanged target price of 41 sen and said Hovid’s 1QFY6/15 core net profit was broadly in line, making up 27% of house and consensus full-year forecasts.
In a note Nov 25, the research house said Hovid’s sales and profit margin improved marginally due to higher selling prices and a favourable foreign exchange rate.
It said that as expected, no dividend was declared.
“We trim our FY15-17 EPS by 1-2% after updating our financial model with the latest numbers from its annual report.
“We keep our SOP-based target price at 41 sen, but upgrade it to Hold from Reduce as its share price has corrected by 18% since we downgraded it to Reduce in Aug 14.
“We prefer Pharmaniaga for its higher upside,” it said.
Hovid’s 1QFY6/15 core net profit was broadly in line, making up 27% of our and consensus full-year forecasts. Its sales and profit margin improved marginally due to higher selling prices and a favourable foreign exchange rate. As expected, no dividend was declared. We trim our FY15-17 EPS by 1-2% after updating our financial model with the latest numbers from its annual report. We keep our SOP-based target price at RM0.41, but upgrade it to Hold from Reduce as its share price has corrected by 18% since we downgraded it to Reduce in Aug 14. We prefer Pharmaniaga for its higher upside.
Key results highlights Hovid’s 1Q15 net profit rose by 26% yoy to RM5.8m, lifted by higher sales. However, EBITDA margin recorded a marginal drop of 0.4% pts from the level a year ago to 19% due to higher research and development expenditure. Excluding these R&D costs, EBITDA margin would have been 0.4% pts higher than last year. We believe the price revision exercise completed in 2HFY14 contributed partly to the higher revenue and profit margin. The weaker RM has also boosted its earnings. Hovid booked a foreign exchange gain of RM0.9m in 1Q15, higher than the RM0.3m gain recognised in 1Q14.
Capacity constraint could limit sales growth Despite the stronger yoy quarterly performance, its revenue grew by only 2% qoq while EBITDA margin improved by only 0.1% pts. During our Healthcare Corporate Day last month, Hovid revealed that its sales growth is still constrained by its plants’ capacity, which is almost fully utilised. We gathered that its order backlog has risen to RM35m (from RM30m two months ago). Capacity constraint is likely to limit its revenue growth in the near term, as its new tablet and capsule plant will only begin operations around Jul-Aug next year.
We upgrade to Hold Hovid’s share price has fallen by 18% and underperformed the broader market by 16% since we downgraded it to Reduce in Aug 14. We are upgrading our recommendation to Hold as its valuations are now more reflective of its earnings growth prospects. We would turn more positive on the stock if its sales or profit margin substantially exceed our expectation.
CIMB ke, RHB ke, KENANGA ke... semua itu majority only for reference and for public. For us, we need to do homework and study the company financial, business, roadmap, etc....
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....
ppginvest
1,591 posts
Posted by ppginvest > 2014-10-28 20:38 | Report Abuse
SharesBuyBack SBB at least good news, company BoD thinks shares are undervalued and willing to buy from market.