- FY25 revenue/adj.PATMIs were within expectations at 99%/97% of our FY25e forecast. 2H25 PATMI rebounded 27% YoY to S$5.94mn from discontinuation of low margin products and tighter cost controls. Headline earnings declined due to FX translation losses and extraordinary provisions in inventory and debtors.
- 2H25 revenue declined 8% YoY to S$97.8mn, led by 23% drop in revenue from Vietnam. There were several challenges in Vietnam: elevated Sterimar inventory, deprioritisation of contrast media, a weak currency, and discontinuation of several products. The ability to pass on higher-priced Euro speciality products has been a challenge. Vietnam is refreshed, with greater emphasis on better-margin products.
- We raise our FY26e PATMI by 10% to S$12.2mn from higher gross margin estimates. Our BUY recommendation and target price of S$0.40 are maintained. Hyphens is expanding its product reach in ASEAN and making new inroads into Europe. A milestone was reached in January with an out-license agreement of Cerapro MED (atopic dermatitis) into six European countries. Another product gaining traction is Winlevi (anti-acne) sales in Singapore and Malaysia. Hyphens trades at an attractive 8x PE, with net cash of $26.8mn (or 27% of market cap).
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