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.
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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.
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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.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
