Pharmaniaga Shares Slip After Lower 3Q Net Profit

KUALA LUMPUR, Nov 14 (Bernama) -- Pharmaniaga Bhd was the third-most-active counter, with 17.7 million shares traded in mid-morning (11 am) today, as its stock fell 0.26 per cent, or half a sen, to 25.5 sen following a sharp drop in third-quarter (3Q) net profit.

The healthcare company reported that net profit for the three months ended Sept 30, 2025 fell 92.8 per cent to RM7.27 million, down from RM101.03 million a year earlier, as higher transportation costs for newly added products on the approved products purchase list (APPL) to East Malaysia, shipped by air and sea, weighed on earnings.

Revenue for the quarter dipped two per cent to RM1.0 billion.

MBSB Investment Bank Bhd (MBSB IB) cut its earnings forecasts for FY25 to FY28 by 30 per cent, nine per cent, five per cent, and one per cent.

“We have revised our target price to RM0.30 from RM0.32, based on a price-to-earnings ratio of 13.5 times and a revised FY26 earnings per share of 2.2 sen,” it said.

The bank said transportation costs, which dragged the logistics and distribution segment in 3Q, may ease next quarter as seasonal hospital demand falls, the new product stock-up completes, and future replenishments can be shipped by cheaper sea freight.

It added that the commercialisation of Pharmaniaga’s biopharmaceuticals in FY26 is expected to support the manufacturing division.

“Hence, we maintain our ‘Buy’ call. However, we remain cautious on potential repeated costs if APPL expansion in East Malaysia continues through year-end and logistics upgrade costs persist. Further clarity from the group is awaited in the upcoming briefing,” MBSB IB said.

Kenanga Investment Bank Bhd echoed the view, noting that with the completion of its regularisation plan, Pharmaniaga has improved its financial position and is targeting to exit PN17 status by 1QFY26.

Kenanga highlighted that Budget 2026 raised the Ministry of Health’s allocation to RM46.5 billion, including RM4.4 billion for medical supplies and RM2.1 billion for concession operations, up from RM4 billion and RM2 billion, respectively, the previous year.

“In the biopharmaceutical segment, Pharmaniaga has strengthened its market presence and contribution. We keep our forecasts unchanged with a target price of 15 sen; however, we downgrade our call from ‘Market Perform’ to ‘Underperform’ following the recent share price run-up,” it said.

-- BERNAMA