Pharmaniaga shares were seen declining in the trading session on Bursa Malaysia today despite the company's earnings in the second quarter showing an increase.
At 10.20am, Pharmaniaga's share price fell one sen to 91.5 sen with 6.31 million units traded.
Pharmaniaga stated that net profit for the second quarter ended June 30, 2021 had increased by RM13.7 million from last year's record of RM9.98 million.
The company's revenue increased 82% year -on -year [yoy] to RM1.2 billion influenced by high demand from various segments including from businesses in Indonesia.
The leading pharmaceutical company also said the significant increase in non-concession business was driven by the sale of Sinovac Covid-19 vaccine to the Ministry of Health (MOH).
Nevertheless, Pharmaniaga remains confident that it is in the best position to take advantage of the growing opportunities from the healthcare sector.
In addition, MIDF Research also emphasized that Pharmaniaga's ability to continue to make vaccines has provided an advantage and the ability for the group to continue to provide vaccines to the federal and state governments as well as to the private sector.
That in turn has prompted MIDF Research to maintain a buy recommendation for shares of Pharmaniaga with a price target (TP) unchanged at 98 cents.
Judging by MIDF Research's research notes, Pharmaniaga's profit margin for the first half ended June 30, 2021 recorded an increase of 13.8% to RM3.68 million.
Meanwhile, the company's revenue jumped 34.5% to RM1.97 billion.
