CGS-CIMB sees decent earnings growth for Pharmaniaga, reiterates ‘add’ call

KUALA LUMPUR, June 28 — CGS-CIMB Securities Sdn Bhd is positive on Pharmaniaga Bhd on the expectation of a decent financial year 2023-2024 earnings growth for the company.

“The ample excess production capacity at Pharmaniaga’s existing plants will allow it to ramp up output in the next three to five years — in light of rising pharmaceutical demand and new product launches — with little to no incremental capital expenditure, thus potentially leading to better economies of scale and margins,” it said.

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