Excerpts from CGS CIMB report

Hyphens Pharma International (SGX: 1J5)

1H22 net profit of S$6.2m (+45% yoy) beat expectations due to reopening of operating markets and higher-than-expected contribution from Novem. This is Novem’s first half-year contribution to HYP since it was acquired on 3 Dec 21. Novem contributed S$9.2m to 1H22 revenue. We up our FY22-24F EPS by 27.2-36.1%. Reiterate Add with a higher DCF based TP of S$0.39 (WACC: 10.7%).

All segments reported growth; Novem’s first half -year contribution

Hyphens Pharma (HYP) 1H22 revenue of S$80.7m (+26.5% yoy/+30.0% hoh) was ahead at 55.6% of our FY22F estimate. All three segments observed yoy revenue growth, with specialty pharma principals and proprietary brands growing significantly at +44.7% yoy and +15.9% yoy to S$48.2m and S$10.8m, respectively. Specialty pharma’s growth benefited from the consolidation of contribution from Novem’s acquisition in Dec 21, as well as robust organic growth (+12.0% yoy)...