Bought at 0.39 (pre X-date), 0.38 and 0.37sen. Will further accumulating if it drop further. Penang R&D center is completely built but yet to open. I just purposely drove there to take a look at their R&D center. 3 floors, bottom one is carpark. 2nd and 3rd floor are offices. About quarter the full football field size.
I trust the management will turnaround all those disadvantages position and its R & D. Times will prove it, i willing to give 1-2 years more to c the result.
It is no easy. U are selling generic drugs. There is no market in Europe or US for yr products. Yours are copies of their original drug. Only in those emerging economies will u find yr buyers.
my personal experience, year 2014 brought VS and then friend of me who say got friend working in the company claim that the company not doing well, 2015 disposed it with nominal gain. You know the company market price now still at what i brought after split 5x!!! a painful lesson of listen from other ppl.
I think hovid can do well given time cos manufacturing medicine though generic is a profit bussiness. After all everyday there is people gt sick n nd medicine.
less profit reported due to lesser other income which was from foreign exhange gain of 6mil compared to correspondance period. Increased in capital investment and drawdown on term loan cuase net cash flow lower, but it was for their future expansion plan, is good. Trade receiveable not worse off turnover increase, still looking good for coming quarter
The main purpose of Hovid's R&D centre is used for clinical test on their drugs. Before this, Hovid's drugs were tested and experimented by other R&D center, now they just move thing in-house to speed-up the time to market of their drugs.
There are basically three parts of expansion in Hovid. 1) R&D (which I explained earlier). 2) manufacturing expansion 3) Distribution Hub.
For 2), the new facility will main used to produces the new drugs (those drug's patent that expired in 2016 and 2017) and some Hovid's new drugs. Hence, definitely demand will increase from time to time. Just pay a visit to your local pharmacies and hospital to check, whether they used Hovid's drugs. Especially during such flat economy, everyone is looking for cheaper alternative, which will give advantage to local supplier like Hovid to get new contract from local hospitals.
for 3), this were discussed in Hovid's annual report, which mainly to reduce the operating expenses of the shipping and improve the efficiency. All the hovid products will only send out door-to-door from Ipoh HUB (directly to the customer).
From my 2cents, I think Hovid management is doing a right thing for all the above expansion plan. Unless human can be immortal, or else I foresee HOVID will be another golden gem in the next couple of years to come.
Also, don forget to look at the depreciation cost in the quarter report. It means non cash loss and will turn to become profit once the expansion completed. Hence, higher EPS in the future.
By refering to cimb funda report, they say hold as for details, read them..looking on ta part, there will be 2 choice..whether to accumulate when the volume flow in or the momentum up is there or if u got so many money to spare on this counter, go on..buy..no problem at all..if u have the holding power, go on n keep buy..if not, as for trade better to look for other counter laa..ur capital will stuck for a certain period..rugi maa
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....
smartly
6,442 posts
Posted by smartly > 2016-10-06 20:51 | Report Abuse
sapu.....