by M JAY SHEILA / pic TMR
SHARES of pharmaceutical company Kotra Industries Bhd fell 17 sen or 2.82% to RM5.85 within an hour after the opening bell with more than 5,500 shares traded.
The Melaka-based company was one of the top losers in Bursa Malaysia today as at 10.45am today.
Its shares however stayed flat up to midday, giving it a market capitalisation of RM865.8 million.
In a research note dated March 7, 2023, CGS-CIMB Securities Sdn Bhd (CGS-CIMB Research) downgraded Kotra to a ‘Reduce’ call from ‘Hold’ previously after taking into account a 57% share price rally in the past year.
The research firm also noted an increasing risk that local sales may soften on a quarterly basis in the next two to three quarters amid easing local drug shortages, which it said will likely de-rate the stock.
However, in its note, CGS-CIMB Research raised Kotra’s target price to RM5.74.
Main Market-listed Kotra saw its net profit for the second quarter ended Dec 31, 2022 (2Q22), increased by 18% to RM16.4 million from RM13.9 million in the same period a year earlier due to higher sales.
Its turnover was also up 17.9% to RM62.3 million from RM52.8 million previously. This was driven mainly by the sales of pharmaceutical products in the local market and also the increase in export sales.
Kotra’s top shareholders are Piong Nam Kim with a 43.66% stake, Piong Teck Onn (11%) and Piong Teck Yen (5.61%).