#MEGA #ThanHoon – EGA reveals 2nd quarter 2023 with good financial statements Continue to develop new products, aiming for 2023, launch more than 25 products and develop more than 152 items and discuss with partners to develop products as well Continue to invest in factories in Indonesia. Hoping to sell more Willing to study opportunities to expand Vienna, look at M&A opportunities to build on the top, break the target of 65 baht
Mr revealed Vivek Dhawan, CEO of Mega Lifesciences Public Company Limited or MEGA, that the direction of operating results in the second quarter of 2023 is expected to come out well. Compared to the 1st quarter of 2023, in the last quarter 1/2023, the business was considered to be back under normal circumstances. and it was a better quarter. Compared to the same period of the year before the occurrence of COVID-19 or the year 2019 and the year 2020, as for COVID-19 Come back to spread this quarter. Consider that products related to COVID may be reduced. But in terms of sales, it will focus on people who are more interested in healthcare than usual. and continued to increase health care such as maintenance with tons of vitamins
product development
At the same time, the company is also moving forward in the development of product research which will gradually launch more than 152 items, focusing on products that meet the needs of consumers For this year, 25 new products will be launched .In the past, since 2022, more than 39 new products have been released. In addition, the company also collaborates with partners in developing various products. With continuous innovation, there are drugs, generic drugs, dietary supplements, and others
The company has invested 340 million baht during 2023-2024 in Thailand. A factory is being built in Thailand that integrates operations. and expanding production capacity by 137 million baht and investing 43 million baht in environmental, social and governance (ESG) sustainability, while in Indonesia: construction of a new pharmaceutical factory, warehouse and development of a pharmaceutical factory Acquired in Indonesia in the amount of 160 million baht to be able to register the drug and expects that within 5 years it will generate an income of 20-30 million US dollars.
Business in Myanmar Although there are domestic problems But the company insists that business is still going strong. And there will be no confiscation of government assets. Consider that the drug is still something that must be used. But the opportunity for growth may be reduced. And the company will focus on doing business with partners who can still do business As for Vietnam, it is still moving forward according to plan. and look for opportunities to invest in additional factories in the future as well In which each country has different laws.
to be the market leader in Asia
It remains committed to strengthening its market leadership position in Southeast Asia and expanding its presence in Africa. with market leading products A strong new product line and conducting business in Southeast Asia and Africa joint strategy joint venture partnership and acquisitions with growth potential. The company is striving to double its business growth from 2019 by 2025.
However, the company still has opportunities in the future. due to the nature of the market industry And the company’s long-term approach to creating value, growth, which, although some periods are caused by economic, political and other factors. Including the study of integration. or acquisitions (M&A) in the main regions where the business operates. put some pressure on it
* Beat on the target price of 65 baht.
Finansia Syrus Securities Public Company Limited told MEGA that MEGA’s 1Q/2023 normalized profit represents 22% of our full-year forecast of Bt2.4bn (flat from the same period last year) that the company will have to make a profit. of about 600 million baht per quarter in the next 3 quarters. This may be a challenge compared to the average quarterly profit of 560 million baht in 2022. However, MEGA currently has more than 170 drugs pending registration.
Maintain a BUY recommendation with a target price of Bt65 (DCF, 8.3% WACC, 3% LTG), which is 23.6x P/E 2023E, +0.5SD from the average of the last 5 years. 20% reflects the end of panic buying during the Covid period . The stock currently trades at 15.1x P/E 2023E, the lowest among domestic and international peers.
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