• RE-ITERATE BUY Entry – 0.325 Target – 0.43 Stop Loss – 0.28
  • Hyphens focuses on the sales and marketing of specialty pharmaceutical products in several ASEAN countries through exclusive distributorship or licensing and supply agreements with brand principals from Europe and the US. In addition, the company markets its own proprietary range of dermatological products under Ceradan, TDF brands and health supplements under Ocean Health. 
  • 1Q2021 turnaround. Hyphens 1Q21 revenue increased 7.5% YoY while gross profit rose 11.2% YoY thanks to a resurgence in its Vietnam sales. While the latest quarterly net income was relatively flat YoY, we note that it managed to achieve a record quarterly sales in 1Q. 
  • Growth spurt. We expect the company to speed up growth going forward as countries in the region reopen. In the online space, one of its subsidiaries was awarded with an e-pharmacy license for wellAway Pharmacy to provide a platform for clinics to order and deliver medicine to patients’ homes. The group also launched several new products last year, including Ceradan Hand Lotion Sanitiser and High Strength Omega-3 Vitamin D3-Enriched and Fast Absorb Iron Energy Formula. 
  • Fundamental Outperform and TP of S$0.43, based on 17x FY2022F P/E. Read our full report here
HYP SP (Source: Bloomberg)