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[Double N] NOVA (0201) NOVA WELLNESS GROUP BHD : Healthcare Related Player with Super Strong Margins


Nova Wellness Group Bhd is engaged in providing dietary supplements which include vitamin, mineral, and herbal supplements, functional food products under brand name activmax and sustinex, and skincare products sold under brands novavis and SP8.
 
1. Nova Products

Source: Nova Wellness Annual Report, Website and Prospectus

Sanitising Products (Sold out?)



Source: Nova Facebook Page
 

Source: Food Navigator
 

2. Strong Historical Financial Performance and Strong Margins among Peers
 
Revenue and Gross Profit: FY2015 - FY2019
 
 
 
 
 
 
In FY2019, Nova has achieved GP Margin of 75% and Net Profit Margin of 37%. This is not the kind of profit margin that you can easily find in any listed companies. 



3. New Healthcare Products...And Already Started Supplying to Government Hospitals!?

Source: The Star

Extract of Important Notes:
"PETALING JAYA: Nutraceutical company Nova Wellness Group Bhd plans to launch new healthcare products to go with its hand sanitiser which has been selling well.
Nova executive director Eddie Phang Yeen Aun told StarBiz that due to the growing market demand, the company will be launching new products over the next few months.
“We will continue to see increased interest in preventive healthcare under this new normal, ” said Eddie, who is the son of Phang Nyie Lin, the founder and major shareholder of the company.
It is supplying to a number of government hospitals since the pandemic began."
 
 
4. A New GMP-Compliant Production Capacity - Soon to be Ready?
Upon completion, production capacity for functional food is expected to increase from 0.69m bottles and 0.69m sachets to 3.43m bottles and 3.43m sachets. On top of that, by setting up its own in-house production for skincare products, Nova will have greater flexibility in production plans as well as focus on higher demand products and product variety.
Source: PublicInvest Research
 
Source: Own Estimates

5. Highest ROE, yet Cheapest among its Listed Peers?

Source: Own Estimates


The healthcare and supplement market have unlimited potential.


Disclaimer:
The information is provided for information only and does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell, or otherwise transact in any investment including any products or services or an invitation, offer or solicitation to engage in any investment activity.
It is strongly recommended that you seek professional investment advice before making any investment decision. Any investment decision that you make should be based on an assessment of your risks in consultation with your investment adviser.
Nova Wellness Group Bhd is engaged in providing dietary supplements which include vitamin, mineral, and herbal supplements, functional food products under brand name activmax and sustinex, and skincare products sold under brands novavis and SP8.
 
1. Nova Products

Source: Nova Wellness Annual Report, Website and Prospectus

Sanitising Products (Sold out?)



Source: Nova Facebook Page
 

Source: Food Navigator
 

2. Strong Historical Financial Performance and Strong Margins among Peers
 
Revenue and Gross Profit: FY2015 - FY2019
 
 
 
 
 
 
In FY2019, Nova has achieved GP Margin of 75% and Net Profit Margin of 37%. This is not the kind of profit margin that you can easily find in any listed companies. 



3. New Healthcare Products...And Already Started Supplying to Government Hospitals!?

Source: The Star

Extract of Important Notes:
"PETALING JAYA: Nutraceutical company Nova Wellness Group Bhd plans to launch new healthcare products to go with its hand sanitiser which has been selling well.
Nova executive director Eddie Phang Yeen Aun told StarBiz that due to the growing market demand, the company will be launching new products over the next few months.
“We will continue to see increased interest in preventive healthcare under this new normal, ” said Eddie, who is the son of Phang Nyie Lin, the founder and major shareholder of the company.
It is supplying to a number of government hospitals since the pandemic began."
 
 
4. A New GMP-Compliant Production Capacity - Soon to be Ready?
Upon completion, production capacity for functional food is expected to increase from 0.69m bottles and 0.69m sachets to 3.43m bottles and 3.43m sachets. On top of that, by setting up its own in-house production for skincare products, Nova will have greater flexibility in production plans as well as focus on higher demand products and product variety.
Source: PublicInvest Research
 
Source: Own Estimates

5. Highest ROE, yet Cheapest among its Listed Peers?

Source: Own Estimates


The healthcare and supplement market have unlimited potential.


Disclaimer:
The information is provided for information only and does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell, or otherwise transact in any investment including any products or services or an invitation, offer or solicitation to engage in any investment activity.
It is strongly recommended that you seek professional investment advice before making any investment decision. Any investment decision that you make should be based on an assessment of your risks in consultation with your investment adviser.

https://klse.i3investor.com/blogs/chemicalguy/2020-08-03-story-h1511501923-_Double_N_NOVA_Healthcare_Related_Player_with_Super_Strong_Margins.jsp
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