KUALA LUMPUR: Pharmaniaga Bhd
rose 6% in early trade Friday after a healthy earnings growth in quarter ended March 2019.
The pharmaceutical company rose 5.93%, or 14 sen to RM2.50. In the past one year, the counter has fallen some 34%.
Pharmaniaga’s net profit increased 11.5% to RM19.62mil for the quarter from RM17.59mil recorded in the same quarter last year.
Revenue for the quarter increased 27.2% to RM786.1mil from RM617.92mil, mainly attributable to stronger demand from government and private hospitals in both Malaysia and Indonesia.
The group declared a first interim dividend of six sen, payable on June 27.
Pharmaniaga said prospects remain bright as it continues to build on its concession and non-concession business.
MIDF Research said Pharmaniaga’s 1QFY19 earnings of RM19.6mil came in within the house and consensus earnings estimates at 40.6% and 34.8% respectively.
It added that historically, 1Q earnings contributed an average of 38.4% to the full year earnings in the past three years.
“We maintain our earnings forecast for FY19F and FY20F as it is within our expectation,” it said.
MIDF has maintained a buy call on Pharmaniaga with a revised target price of RM2.74 per share.