Pharmaniaga poised to benefit from vaccine, says Kenanga Research
02 Oct 2020
Kenanga Research said Pharmaniaga Bhd is poised to benefit from a vaccine with its well-integrated logistics and distribution network nationwide, and an already existing small volume injectable (SVI) plant in Puchong, which is suitable for the “fill and finish” of inactivated/killed vaccines.
In a daily technical highlight note today, the research house said the stock recently found support for its 50-day simple moving average (SMA), while forming a bullish “pennant” pattern after retracing from an all-time high of RM6.69 on Aug 25.
“Thus, should the buying interest persist, our overhead resistances are set at RM5.30 (R1: +13% upside potential) and RM5.60 (R2: +19% upside potential).
“Meanwhile our stop loss is pegged at RM4.20 (or 11% downside risk).
“Based on consensus estimates, the company is projected to turn from a loss to a net profit of RM70.2 million in the financial year ending Dec 31, 2020 (FY20) and RM71.6 million (+2% year-on-year) in FY21.
“This translates into a forward price-earnings ratio of 17 times for both years respectively,” it said.
Source: The Edge Markets Posted on : 02 October 2020