- Hyphens Pharma (SGX:1J5)'s 1Q23 results were below expectations. Revenue and PATMI were 19%/10% of our forecasts. Revenue suffered from the cessation of Biosensors and delay shipments in Vietnam.
- - Read this at SGinvestors.io -
- We cut our FY23e earnings forecast for Hyphens Pharma by 31% to S$9.1mil and the DCF-based target price for Hyphens Pharma is lowered to S$0.39 (previously S$0.445). Our BUY recommendation is maintained.
- We expect the supply constraints to spill over into 2Q23. Proprietary brands have performed well with 16% growth. It will be a multi-year journey for proprietary brands to reach scale and compete even more effectively in the region.
- - Read this at SGinvestors.io -
The Positive
Healthy growth in proprietary brands.
- Proprietary brands revenue increased by 16% in 1Q23 supported by higher demand for Ceradan® dermatological products. Ceradan® and Ocean Health® have a pipeline of new products to be launched this year.
- Hyphens Pharma launched Ceradan® Advanced Emollient Wash in Singapore and Malaysia during 1Q2023.
The Negatives
Supply disruption in specialty products.
- Read more at SGinvestors.io.
