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Sinovac could further boost Pharmaniaga sales in 1H22

KUALA LUMPUR: Further earnings growth for Pharmaniaga Bhd could come from the Sinovac vaccines' potential to be approved as a booster shot and for adolescent use, says Kenanga Research, although this would likely be rolled-out in 1H22.

The research firm noted that after recording bumper profits in 3QFY21, Pharmaniaga's earnings growth could take a pause in the final quarter of this year with any requirement for a Sinovac vaccine booster shot potentially starting from December onwards.

This is owing to a majority of Sinovac recipients receiving their second dose between June and September.

There are currently about 11 million Sinovac recipients requiring the booster shot.

Meanwhile, the group is currently in talks with Sinovac Biotech to supply vaccines to neighbouring countries via their fill-and-finish facility.

Kenanga said Malaysia is one of five countries outside of China that have been authorised to conduct fill-and-finish for Sinovac.

Pharmaniaga marked its maiden entrance into the vaccine international market by successfully exporting the first batch of Sinovac filled and finished Covid-19 vaccine to Myanmar with an initial order of

200,000 doses last week.

Post-results, Kenanga raised its FY21-22 net profit forecasts due to better-than-expected vaccine sales and concession extension.

"Correspondingly, we raise our TP fromRM 0.54 to RM0.85 based on 15x FY22E EPS (-0.5SD below its 5-year historical forward mean)," it said while upgrading the stocks to "market perform" from "underperform" previously.


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