A fresh start
Megan Choo / 65 6202 1190 / megan.choo@kgi.com
Tan Jiunn Chyuan (Kenny) / 65 6202 1196 / Kenny.tan@kgi.com

 1Q21 looks promising. Recovering from FY2020’s dip of 5.6% in net profit, Hyphens delivered its highest ever quarterly sales in Q1 with profit margin hitting 6.3%, as demand in Vietnam recovered.
 Staying focused – Proprietary brands. The group is consistently expanding its proprietary brands, which has the highest product gross margin.
 Streamlining medicine deliverables – ePharmacy. Riding on the quick expansion of telehealth, Hyphens has partnered with WellAway Pharmacy in medicine deliverables to the convenience of patients’ homes.
 Upgrade to OUTPERFORM with new TP of S$0.43. We roll forward valuation to be based off FY2022 forecasts and maintain our 17x P/E peg.