What You May Have Missed From BIOHLDG (0179): BIOALPHA HOLDINGS BHD Quarterly Results!
Upon my sharing last week on Bioalpha's background, the share price had gone up by 8.6%, hence I would like to congratulate the followers who trusted me!
However, I would like to emphasise that the rally in share price was a fluke as the market is favouring vaccine themed stocks. And as I mentioned previously, Bioalpha is going to dive deep into supplying immunity-booster products.
And Bioalpha being the largest herbal farm in Malaysia, they have no problem in sourcing the raw materials. As for the formulations? Over the past years, Bioalpha had accumulated over 300 formulations on hand, and on average would add 30 in their portfolio every year.
Today, ST Capital is going to share with you the hidden message stated in the quarterly report. To those who can decipher it, may profit from it. To those that remains to turn into a blind eye, are going to be left out from the profits.
In this quarter, the company’s financial results were affected by the COVID-19 pandemic and this had a negative impact on Bioalpha. However, they are going to see a gradual recovery moving forward as the economy is re-opening with the vaccine news.
At the same time, the management also hinted that their ODM business is going to do better on a QoQ basis in FY 2020 Q4. This was mainly due to, in my humble guess was on their immunity-booster products.
One should not forget about the company’s warehouse of a size of 10,800 square feet to store products for fulfilling orders from Guizhou, China. This would have an everlasting impact on the company’s upcoming results.
Their core retail brand – Constant might be going through a rebranding exercise from what I heard from their suppliers.
To conclude, the management hinted over and over again that the next quarter would perform better than this quarter. To get return from investments, one should look for companies that are turning around and which their share price had not reflected yet. And Bioalpha remains as my stock pick for Q4 2020.
Whether you believe or not, Bioalpha is going to hit RM 0.500 is December due to more and more investor are learning about the huge prospects of the company. I’m writing the article purely to share my investment thesis, and it is your own call to follow it, or neglect it.
At the end of the day, price will prove everything. Naysayers will focus on the current quarter loss, but successful investors would look beyond the current quarter, and focus on the future prospects.