RHB Investment Bank Bhd increased its buy rating on shares of Duopharma Biotech Bhd following the current low valuation.
According to a statement issued, the research firm is confident and believes in the company’s perceived strong fundamentals as well as current price levels that are attractive to investors.
Yesterday, the pharmaceutical company reported that its net profit recorded an increase of RM15.39 million in the second quarter ended June 30, 2021.
The net profit earned was also slightly higher compared to RM14.73 million achieved in the same period last year.
Based on information to Bursa Malaysia, the acquisition recorded an increase to RM155.44 million from RM143.33 million previously.
The 7% jump in the acquisition rate, as a result of support gained on strong demand for consumer healthcare products in the Covid-19 pandemic environment.
Meanwhile, CGS-CIMB Securities Sdn Bhd maintained an upside recommendation for the stock with a low target price of around RM3.16.
The target was also taken into account after assessing the long -term revenue prospects from the development of vaccine manufacturing capabilities.
This following the implementation of the next government supply agreement will be a catalyst for re-rating in the near future as well as the granting of approval by the Drug Control Authority (DCA) for the Sputnik V Covid-19 vaccine.
The DCA recently granted conditional approval for the emergency use of the Sinopharm Covid-19 vaccine for which registration will be effected by Duapharma.
