Pharmaniaga: Maintains BUY Outlook Despite Earnings Miss as FY26 Prospects Strengthen

Pharmaniaga’s 9MFY25 results fell short of expectations, recording only 31% of the annual earnings forecast, prompting a revised target price of RM0.30 while maintaining a BUY call. The group’s core PATAMI dropped sharply to RM33.9 million, down 73% year-on-year, mainly due to higher transportation costs for newly added APPL products delivered to East Malaysia via air and sea freight.

BUY Outlook

Despite this, revenue grew 6% to RM3 billion. The manufacturing division posted stronger profit, supported by rising demand for in-house medicines from government hospitals and ongoing vaccine expansion. Logistics and distribution, however, remained pressured by elevated transport costs and sales of older inventory at revised prices.

Profit weakened

In Indonesia, revenue and profit weakened due to currency fluctuations.

Pharmaniaga’s financial position improved significantly following its Regularisation Plan, with cash increasing 418% and borrowings reduced by 24%. The group expects the impact from logistics to ease ahead of biopharmaceutical commercialisation in FY26.

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