Pharmaniaga poised to benefit from vaccine, says Kenanga Research

Pharmaniaga poised to benefit from vaccine, says Kenanga Research

02 Oct 2020

Kenanga Research said Pharmaniaga Bhd is poised to benefit from a vaccine with its well-integrated logistics and distribution network nationwide, and an already existing small volume injectable (SVI) plant in Puchong, which is suitable for the “fill and finish” of inactivated/killed vaccines.

In a daily technical highlight note today, the research house said the stock recently found support for its 50-day simple moving average (SMA), while forming a bullish “pennant” pattern after retracing from an all-time high of RM6.69 on Aug 25.

“Thus, should the buying interest persist, our overhead resistances are set at RM5.30 (R1: +13% upside potential) and RM5.60 (R2: +19% upside potential).

“Meanwhile our stop loss is pegged at RM4.20 (or 11% downside risk).

“Based on consensus estimates, the company is projected to turn from a loss to a net profit of RM70.2 million in the financial year ending Dec 31, 2020 (FY20) and RM71.6 million (+2% year-on-year) in FY21.

“This translates into a forward price-earnings ratio of 17 times for both years respectively,” it said.

Source: The Edge Markets Posted on : 02 October 2020