Apex Healthcare Bhd’s (AHB) 9MFY12 results were largely in line with our expectations. Its 9MFY12 revenue rose 10.6% y-o-y to RM302.6m, accounting for about 74.6% of our full-year target, while YTD PBT surged 22.5% y-o-y to RM32.4m. Its strong performance was attributed to improvements in all business segments. AHB’s share price, which once hit RM3.86 on 15 Oct 2012 before retreating to yesterday’s close of RM3.56, has gone up by 22.3% since our first report on 3 Aug 2012. In addition, its consistent good dividend payout should provide support to the share price. We are leaving our FY13 forecast unchanged with RM3.84 FV, based on its 10-year average PER of 9.5x, but revising our call to NEUTRAL.
In line. 9MFY12 results were within our expectation, with annualised revenue and PBT were accounted for about 99.4% and 96.2% respectively of our full-year estimate. 3QFY12 revenue came in at RM97.8m (+6.5% y-o-y, -2.9% q-o-q), while PBT stood at RM8.8m (+41.9% y-o-y, -22.6% q-o-q). The lower q-o-q performance was mainly due to higher contribution from its high-margin products during 2QFY12. 9MFY12 PBT rose 22.5% y-o-y to RM32.4m, on the back of a 10.6% increase in revenue of RM302.6m. The improved results were due to better performance across all its business segments, with the revenue from its manufacturing & marketing segment and wholesale & distribution segment up 11.0% and 15.0% y-o-y, respectively. The performance was also partly boosted by a RM2.2m impairment loss recorded in 3QFY11 when the company divested its stake in Xiamen Maidiken Science & Technology Co Ltd, China. Stripping off the impairment loss, PBT growth was relatively modest at 13.1% y-o-y.
New own-brand product to boost sales. The company launched a new product, ADROTEN (bisoprolol 5mg) under its own brand during the quarter under review. The product, a treatment of hypertension, has attained good market reception. This further strengthens its portfolio of cardiovascular products. The company is working towards its target of generating higher contribution from its own-brand products with higher margins.
Strengthening wholesale & distribution business. The company’s wholesales & distribution arm, Apex Pharma, has shown steady growth. Its AVO Diagnostics products continue to gain market share, with its sales growing 41% y-o-y. The newly-launched AVO products managed to penetrate the market. Its performance in the Singapore’s market is commendable, with revenue up by 13% y-o-y, backed bystronger margins from all segments. The group’s exports to Singapore have increased, especially for its Agnesia medicated powder line which has recently expanded with the addition of two new fragrances, Lavender and Rose.
Maintain RM3.84 FV, revised to NEUTRAL. We continue to like AHB for its sound fundamentals, good dividend payout track record and higher margins from its own-brand products. Its share price, which once hit RM3.86 on 15 Oct 2012 before retreating to yesterday’s close of RM3.56, has gone up by 22.3% since our first report on 3 August 2012. In addition, its consistent good dividend payout should providesupport to the share price. We are leaving our FY13 forecast unchanged with RM3.84 FV, based on its 10-year average PER of 9.5x, but revising our call to NEUTRAL.
In line. 9MFY12 results were within our expectation, with annualised revenue and PBT were accounted for about 99.4% and 96.2% respectively of our full-year estimate. 3QFY12 revenue came in at RM97.8m (+6.5% y-o-y, -2.9% q-o-q), while PBT stood at RM8.8m (+41.9% y-o-y, -22.6% q-o-q). The lower q-o-q performance was mainly due to higher contribution from its high-margin products during 2QFY12. 9MFY12 PBT rose 22.5% y-o-y to RM32.4m, on the back of a 10.6% increase in revenue of RM302.6m. The improved results were due to better performance across all its business segments, with the revenue from its manufacturing & marketing segment and wholesale & distribution segment up 11.0% and 15.0% y-o-y, respectively. The performance was also partly boosted by a RM2.2m impairment loss recorded in 3QFY11 when the company divested its stake in Xiamen Maidiken Science & Technology Co Ltd, China. Stripping off the impairment loss, PBT growth was relatively modest at 13.1% y-o-y.
New own-brand product to boost sales. The company launched a new product, ADROTEN (bisoprolol 5mg) under its own brand during the quarter under review. The product, a treatment of hypertension, has attained good market reception. This further strengthens its portfolio of cardiovascular products. The company is working towards its target of generating higher contribution from its own-brand products with higher margins.
Strengthening wholesale & distribution business. The company’s wholesales & distribution arm, Apex Pharma, has shown steady growth. Its AVO Diagnostics products continue to gain market share, with its sales growing 41% y-o-y. The newly-launched AVO products managed to penetrate the market. Its performance in the Singapore’s market is commendable, with revenue up by 13% y-o-y, backed bystronger margins from all segments. The group’s exports to Singapore have increased, especially for its Agnesia medicated powder line which has recently expanded with the addition of two new fragrances, Lavender and Rose.
Maintain RM3.84 FV, revised to NEUTRAL. We continue to like AHB for its sound fundamentals, good dividend payout track record and higher margins from its own-brand products. Its share price, which once hit RM3.86 on 15 Oct 2012 before retreating to yesterday’s close of RM3.56, has gone up by 22.3% since our first report on 3 August 2012. In addition, its consistent good dividend payout should providesupport to the share price. We are leaving our FY13 forecast unchanged with RM3.84 FV, based on its 10-year average PER of 9.5x, but revising our call to NEUTRAL.
Source: OSK
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