Hyphens Pharma International Ltd – Year of investment and challenges August 23, 2023 208

PSR Recommendation: BUY Status: Maintained
Last Close Price: 0.275 Target Price: 0.350
  • 2Q23 PAT was down 29% YoY and below expectations. 1H23 revenue and PATMI were 46%/39% of our forecasts. The discontinuation in Biosensors distribution, absence of a major hospital tender and supply disruptions of several specialty pharma products was a drag on earnings.
  • Hyphens announced a 3.6 cents special interim dividend for the 5th anniversary of its IPO.
  • We maintain our FY23e revenue but lower our PATMI by 11% to S$8.0mn. Our operating expense forecast is raised as Hyphens will be investing more in senior hires and building up the DocMed platform. Our DCF target price is lowered to S$0.35 (prev. S$0.39). Our BUY recommendation is maintained.


The Positive

+ Healthy balance sheet and special dividend. The company announced a 3.6 cents special interim dividend for the 5th anniversary of its IPO. The payout of S$11mn is well supported by its net cash of S$33mn as of Jun23.


The Negative

– Weakness in specialty pharma. Specialty revenue was down 13% YoY in 1H23 to S$41mn. The drop was from the discontinuation of distributing Biosensors products (Dec22), the absence of one-off hospital tenders and supply disruptions of several specialty pharma products. Vietnam bore the brunt of the supply disruption with revenue contracting 27% in 1H23.

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About the author

Profile photo of Paul Chew

Paul Chew
Head of Research
Phillip Securities Research Pte Ltd

Paul has 20 years of experience as a fund manager and sell-side analyst. During his time as fund manager, he has managed multiple funds and mandates including capital guaranteed, dividend income, renewable energy, single country and regionally focused funds.

He graduated from Monash University and had completed both his Chartered Financial Analyst and Australian CPA programme.

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