KUALA LUMPUR (June 21): Investors took profit on Pharmaniaga Bhd on Thursday after the stock’s recent following Bursa Malaysia lifting the price freeze on the stock on June 20, despite the company having announced three days earlier in response to a UMA query that it was unaware of any reason for it share price to rise sharply.
At 9.25am, Pharmaniaga was down 21 sen to RM9.29 with 4,400 shares done.
Dealers said Pharmaniaga drew investors’ interest after the company’s commendable performance under Boustead Holdings Bhd.
In a reply to Bursa Malaysia Securities Bhd on June 18 after it was issued an UMA query over the consecutive limit up of its shares, Pharmaniaga said there were no were no corporate developments relating to the company and its subsidiaries’ business and affairs that have not been previously announced that may account for the UMA, including those in the stage of negotiation/discussion
“Pursuant to Paragraphs 9.09 and 9.10 of the Main Market Listing Requirements, to the best of our knowledge, there are no rumours or reports concerning the business and affairs of the Pharmaniaga Group that may account for the UMA,” it said.
Bursa Malaysia Securities Bhd had earlier issued an unusual market activity (UMA) query to Pharmaniaga Bhd over the recent consecutive limit up of the company’s shares.
On May 3, Pharmaniaga reported that its first quarter net profit rose 85% from a year earlier as revenue growth mitigated the impact of higher operating cost, besides finance and tax expenses.
In a statement to the exchange, Pharmaniaga said net profit came to RM28.69 million in the quarter ended March 31, 2012 versus RM15.48 million previously as revenue grew 16% to RM446.75 million from RM385.33 million.
The pharmaceutical products manufacturer said revenue had risen following the inclusion of income from a newly-acquired subsidiary Idaman Pharma Manufacturing Bhd.
Looking ahead, Pharmaniaga said it hopes to boost bottom line by streamlining its production and procurement functions to reduce operating cost.
The firm said it planned to pay a first interim single-tier dividend of 7.5 sen a share for financial year ending December 31, 2012. Conglomerate Boustead Holdings Bhd owns some 72% in Pharmaniaga.
Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin had then said the company had been able to clock in strong results, due to a combination of factors including growth in turnover, improved efficiency, revenue from its newly acquired Idaman Pharma Manufacturing Sdn Bhd which contributed 25% of the group’s pre-tax profit and improved revenue from its Indonesian operations.”
“We are optimistic of 2012’s prospects and are committed to expanding our business locally and internationally in order to enhance shareholder value as we look to move up the pharmaceutical value chain this year.”
“Given our strong opening results for this financial year, we have declared an interim dividend to our existing shareholders and we are confident to continue rewarding them for as long as our earnings track record is sustained or surpassed,” he said.