BioAlpha to boost output, open new stores

PETALING JAYA: BioAlpha Holdings Bhd plans to increase the production of its pharmaceutical products and also open more “Constant” pharmacies across the country.

CIMB Equities Research said it was positive on the plans and maintained its earnings per share (EPS) forecasts and target price of 44 sen (last traded price 24 sen).

“This is based on an unchanged 20 times FY19 forecast price earnings, at a 20% discount to our 25 times consumer sector target P/E for 2019F. The stock remains an “add.”

“A potential catalyst is strong, sustained domestic revenue growth. A downside risk is export revenue remaining weak,” it said.

CIMB Research said on Oct 5, it arranged for seven fund managers to meet BioAlpha’s managing director William Hon and CFO Goh Siow Cheng.

It said during the meetings, the fund managers focused on BioAlpha’s proposed acquisition of a majority stake in North West Enterprise Sdn Bhd (NWE).

NWE manufactures, trades and supplies hotel amenities and personal care products to major hotels in the country.

“The due diligence process on NWE is ongoing. BioAlpha likes NWE’s distribution business that caters to the major hotels across the country and the company believes it could sell in its own-brand products (Tongkat Ali and Kacip Fatimah teas) to tourists staying at these hotels,” it said.