” Although no segmental breakdown was provided in its 3QFY2024 trading update, we believe the weaker revenue momentum in 3QFY2024 was due to slower sales in Vietnam,” says Tay in his Nov 13 report. “This is due the expansion in gross profit margins by 3.3 percentage points y-o-y and 5.1 percentage points q-o-q in 3QFY2024, as we understood from the management previously that Vietnam tends to command lower margins due to more pricing pressure in its key hospital sales channel.”
CGS International analyst Tay Wee Kuang has lowered his target price estimate for Hyphens Pharma International (SGX:1J5
) to 35 cents from 40 cents previously as he sees slower revenue momentum based on the company’s 3QFY2024 ended Sept 30 update.
Hyphens Pharma reported 3QFY2024 revenue of $43.9 million, 2.5% higher y-o-y, due to better sales, which were mainly from the company’s Singapore and Malaysia businesses. Net profit after tax, however, fell by 5.6% y-o-y to $2 million from higher distribution costs in line with improved sales and higher manpower costs as well as an increase in administrative expenses.
