BIOALPHA HOLDINGS BERHAD - 1QFY2017 Result

Highlights

•  For 1QFY2017, revenue of the group increased by 24.9%. However, bottomline dive into net loss. Reason for the group to incur losses is due to RM1.8 mil ESOS expenses and RM0.55 mil rights issue expenses.
• By excluding the ESOS expenses and rights issue expenses, the Profit after tax would have been RM0.26mil. That's an increased of 116.67% from RM0.12mil.
• The group's cash holding has increased to RM29.8 mil as a result of right issue carried out in January 2017. Total debt is RM3.4mil. This gives the group net cash of RM26.4mil.
• The proceeds of the fund raised from rights issue is being utilized for the following:

 

• The group has increased its capex and development expenses by multiple times in 1QFY17 compare to 1QFY16.

 

• Export sales to China and Indonesia is growing strong, increasing by 73.3% and 50% for Indonesia and China respectively.
• Manufacturing segment grow by 48.5% driven by export sales. Whereby the growth for retail pharmacy segment is pretty flat at 2.7%

source: CIMB report

Financials

• Market Cap = RM181 mil @ RM0.23
• NOSH = 787 mil
• EPS = 1.53 (TTM)
• P/E = 15 (TTM) @ RM0.23
• ROE = 9.04% (FY2016)
• NAPS = 0.12 (FY2016)
• NP Margin = 18.5% (FY2016) 

Prospect/Catalyst

• The group plan to launch 6 new products for Indonesia market in year 2017. 
• The group plan to launch 5 new products for China market in year 2017.
• On domestic front, the group plan to launch 5 new products in year 2017.
• The group has started phase 2 development of planting 100 types of herbs. The group aims to complete planting over the next 24 months.
• The group plan to double the number of CONSTANT retail pharmacies by end of year 2017. This involves collaborating with ANGKASA through franchising model.
• Business is expected to pick up in 2nd half of the year because business activities typically peak in 3rd and 4th quarter of the financial year in conjunction with year-end festive promotional activities by its customers.  

 News

•  http://www.thestar.com.my/business/business-news/2017/05/26/bioalpha-to-launch-new-products/
• http://www.thestar.com.my/business/business-news/2017/04/17/tieup-with-angkasa-to-boost-bioalphas-domestic-earnings/
• http://www.thestar.com.my/business/business-news/2017/01/04/bioalpha-rights-issue-oversubscribed-by-22pc/
• http://www.thestar.com.my/business/business-news/2016/07/04/bioalpha-banks-on-overseas-markets/
• http://www.thestar.com.my/business/business-news/2016/05/04/bioalpha-takes-60pc-stake-in-indonesian-firm/ 

For Reference
Earlier post on BIOALPHA - http://pomeloinvestment.blogspot.my/2017/06/bioalpha-holdings-berhad-introduction.html
 
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