16-05-2025
- Business
- New Straits Times
Duopharma shares up in early trade on strong Q1 results
KUALA LUMPUR: Duopharma Biotech Bhd's share price rose on Friday morning following its robust result for the first quarter of financial year 2025 (1Q 2025) due to a surge in insulin supply and improvements in public sector sales.
At 10.27 am, the company's shares gained three sen, or 2.33 per cent, to RM1.32 with a total of 3.21 million shares traded.
Yesterday, Duopharma reported a higher net profit of RM25.64 million for its 1Q ended March 31, 2025, against RM15.28 million in 1Q 2024, while revenue expanded to RM262.74 million from RM192.97 million previously.
In a note, Kenanga Investment Bank Bhd said Duopharma is poised to benefit from a full year of contribution in 2025 from the approved products purchase list (APPL) contracts, further boosting revenue and tilting its sales mix higher toward public sector sales.
"We like the company for its business model, encompassing the entire spectrum of the pharmaceutical value chain and dominant local manufacturer of generic drugs in terms of sales volume and value," it said.
Meanwhile, RHB Investment Bank Bhd believes that Duopharma's prospects will continue to be underpinned by the recent additional contract win from the Ministry of Health (MOH) for the supply of pharmaceutical products under the APPL contract, with a combined estimated contract value of RM684 million.
"A higher budget allocation to MOH, which should boost Duopharma's sales to the public sector, ought to be another positive," it added.
