KUALA LUMPUR (April 11): Hong Leong Investment Bhd said Pharmaniaga Bhd's growth will be supported by its five-year strategy introduced in 2021.

In its technical tracker on Monday (April 11), the research house said the strategy will focus on four areas: i) strengthening its logistics and distribution business in Malaysia and Indonesia; ii) expanding its products’ range; iii) aim to become a serious contender in the biopharma industry, particularly in the development of insulin and vaccines; and iv) expanding new international markets.

It said that currently, about 20% of Pharmaniaga's total revenue comes from international markets, and Pharmaniaga is planning to capture a higher 50% target via aggressive penetration into the Philippines and Thailand markets (combined population of circa 179 million versus Malaysia population of circa 32.7 million).

“Technically, Pharmaniaga is building a sound base near 70 sen-74 sen territory, which we believe would offer a buying opportunity.

“A strong breakout above 76 sen (200-day moving average) will spur the prices towards 82 sen-86 sen- 90 sen territory. Cut lost at 70 sen,” it said.