Kuala lumpur: Pharmaniaga Bhd emerged as the third-most-active counter with 17.7 million shares traded by mid-morning (11 am) today. The company’s stock dipped by 0.26 percent, or half a sen, closing at 25.5 sen. This decline followed a significant drop in its third-quarter (3Q) net profit.
According to BERNAMA News Agency, the healthcare company disclosed that its net profit for the three months ending September 30, 2025, plummeted by 92.8 percent to RM7.27 million, compared to RM101.03 million from the previous year. The decline was attributed to increased transportation costs for newly added products on the approved products purchase list (APPL) to East Malaysia, which were shipped by air and sea, impacting earnings.
The company also reported a two percent decrease in revenue for the quarter, amounting to RM1.0 billion. MBSB Investment Bank Bhd (MBSB IB) subsequently adjusted its earnings forecasts for the fiscal years 2025 to 2028, reducing them by 30 percent, nine percent, five percent, and one percent, respectively.
MBSB IB noted, “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.” The bank further commented that the logistics and distribution segment, which was burdened by transportation costs in 3Q, might see relief next quarter. This is due to a decline in seasonal hospital demand, completion of new product stock-up, and future replenishments expected to be shipped via more cost-effective sea freight.
The bank also mentioned that the commercialisation of Pharmaniaga’s biopharmaceuticals in FY26 is anticipated to bolster 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 added.
Similarly, Kenanga Investment Bank Bhd shared this perspective, pointing out that following the completion of its regularisation plan, Pharmaniaga has improved its financial standing and aims to exit PN17 status by the first quarter of FY26. Kenanga highlighted that Budget 2026 has increased the Ministry of Health’s allocation to RM46.5 billion, with RM4.4 billion earmarked for medical supplies and RM2.1 billion for concession operations, compared to RM4 billion and RM2 billion, respectively, from 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,” Kenanga stated.