HYPHENS PHARMA INTL LIMITED (SGX:1J5)
Hyphens Pharma - Strongest 1H Recorded
- Hyphens Pharma (SGX:1J5)'s 1HFY21 revenue was in line with our forecasts, making up 50.2% of our FY21E revenue. Net profit was higher at 71.1% of our forecasts, as gross margin generated from specialty pharma segment exceeded our expectations due to better product mix.
- Revenue saw growth across all segments, rising 6.1% to S$65.4m, led by specialty pharma principals which grew 10.9% y-o-y from S$31.4m to S$34.8m, with higher demand in Vietnam, Singapore and Malaysia. Proprietary brands (+2.4%) with higher demand for Ceradan products and medical hypermart & digital (+0.4%) saw slight uptick.
- Hyphens Pharma's gross margin rose 3.7ppt to 37.9% in 1H21, with higher margins from the specialty pharma segment. Net profit rose 0.8% y-o-y to S$4.3m. If government grants were excluded from both periods, Hyphens Pharma's net profit grew 22.7% from S$3.4m to S$4.2m.
Continue to focus on proprietary brands and internationalization efforts
- Hyphens Pharma continues to undergo considerable R&D (S$0.2m in 1H21, compared to S$0.07m in 1H20), and has recently launched its Ocean Health® nutritional supplement High Strength Eye Moist Omega Formula to promote moist eyes and healthy vision awareness takes time.
Maintain BUY rating with fair value unchanged at S$0.370
- We maintain a BUY rating on Hyphens Pharma, with fair value unchanged at S$0.370. Our DCF-derived target price translates into a Delta variant and the elevated cases in key market Vietnam and third highest market Malaysia.
- See
- We continue to see positives for Hyphens Pharma which are at Vietnam (its second biggest geographical contributor) and Malaysia, both of which are still having movement control restrictions, reducing ease of purchase.
Lim Li Jun Tracy
SAC Capital Research
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Lam Wang Kwan
SAC Capital
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https://www.saccapital.com.sg/
2021-08-24
SGX Stock
Analyst Report
0.370
SAME
0.370
