PETALING JAYA: Duopharma Biotech Bhd
is expected to see a record profit for this year, underpinned by a stronger ringgit, higher sales and improved operating efficiency.
TA Research said it expects the pharmaceutical group’s earnings to grow by 43.1% to RM88.4mil in 2025. The research house projects Duopharma to register a quarterly profit of between RM12mil and RM15mil in its upcoming results for the fourth quarter of 2024 (4Q24).
“This is 41.1% to 76.4% higher than the net profit of RM8.5mil for 4Q23. The increase in profit is expected to come from higher sales, driven by a new approved products list contract and improved operating efficiency,” the research house said in a report.
TA Research said prices of active pharmaceutical ingredients (API), which account for 50% to 60% of Duopharma’s costs, have dropped by at least 10% year-on-year and reverted to pre-pandemic levels.
The research house’s analysis suggests that the group could save approximately RM14mil for every 5% change in API prices.
The research house reiterated a “buy” call on Duopharma with a new target price of RM1.62 from the previous RM1.50, based on a target price-earnings multiple of 16 times.
