Hyphen Pharma International - Building Up The HYPe
- Hyphens Pharma (SGX:1J5)'s 1Q22 net profit of S$3.2m (+122% q-o-q; +50% y-o-y) beat our/consensus expectations at 39.3%/40.2% of FY22F.
- Revenue grew across all three business segments, driven by improved macroeconomic conditions as well as contribution from Novem’s acquisition.
- 1Q22 saw a full contribution from Novem’s portfolio since its acquisition in Dec 2021. We believe that the higher-than-expected revenue contribution from Novem compared to its flattish S$10m-11m sales p.a. over FY19-21 was due to the return of patients as the public healthcare sector in Singapore shifted its focus back to the backlog of deferred treatments for non-COVID-19 patients over the past two years.
- Reiterate ADD call on Hyphens Pharma with an unchanged DCF (WACC: 9.1%) target price of S$0.36. Increased supply/freight costs are possible headwinds. We believe the market has not recognised the impact of Novem’s acquisition on its earnings profile.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
TAY Wee Kuang CGS-CIMB Research | Izabella TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-05-13 2022-05-13
Previous report by CGS-CIMB:
2022-03-02 Hyphen Pharma International - Quality Earnings To Come In FY22
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