In today’s briefing:
- WuXi AppTec (603259.CH/2359.HK)- The Private Placement and Shanghai Yingyi’s Illegal Share Reduction
- Dr. Reddy’s Laboratories (DRRD IN) 4QFY22: Double-Digit Sales Growth; One-Off Charge Impacted Profit
- Dr. Reddy’s Laboratories – Strong Growth Across Business Segments
- Gland Pharma Ltd. – In-Line with Estimates; Upgrade to Buy on Valuation Comfort
- Lupin – Disappointing Quarter; Focus on Driving Cost Efficiencies
WuXi AppTec (603259.CH/2359.HK)- The Private Placement and Shanghai Yingyi’s Illegal Share Reduction
- It’s understandable to take advantage of current market value and reserve capital in advance.Considering potential risks, how low the price of proposed issuance has to be to feel “safe enough”?
- Yingyi’s illegally reducing its holdings of WuXi AppTec could be a signal– Yingyi and other shareholders/executives are not confident in WuXi AppTec’s outlook, who may not regain its glory days.
- We recommend investors to view this proposed issuance rationally. If investors want to trade, a good strategy is to catch rebound after plunge, although the temporary rebound does not last.
Dr. Reddy’s Laboratories (DRRD IN) 4QFY22: Double-Digit Sales Growth; One-Off Charge Impacted Profit
- Dr. Reddy’s Laboratories (DRRD IN) reported 15% y/y growth in revenue in Q4, driven by strong performance across all the markets. Adjusted for one-offs, net profit grew 54% y/y.
- Despite pricing pressure, the U.S. business should continue its growth momentum with better traction in key products launched in FY22 and upcoming new launches, including generic version of Revlimid.
- Inflationary pressure (raw material, freight), lower offtake of COVID-related products in India, and currency headwinds in emerging markets are some downside risks for the company.
Dr. Reddy’s Laboratories – Strong Growth Across Business Segments
- Dr. Reddy’s reported revenue at Rs54,368mn, up 15% YoY and 2.2% QoQ. EBITDA stood at Rs12,981mn, up 14.6% YoY and 2.5% QoQ.
- EBITDA margin stood at 23.9%, down 9bps YoY, but up 8bps QoQ.
- Profit After Tax (PAT) stood at Rs875mn, down 84.2% YoY and 87.6% QoQ.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Gland Pharma Ltd. – In-Line with Estimates; Upgrade to Buy on Valuation Comfort
- The company has guided for a capex of Rs3,000mn in FY23, which will be invested in the Pashmelyaram facility, API expansion and expansion of Enoxaparin production capacity.
- The company expects 9-10% revenue growth from new product launches. New product launches are expected to deliver better margins than the existing portfolio.
- Gland is looking at acquiring late stage complex injectable assets / fermentation API assets.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Lupin – Disappointing Quarter; Focus on Driving Cost Efficiencies
- Lupin reported revenue of Rs38,830mn, up 2.6% YoY, but down 6.7% QoQ. EBITDA stood at s2,678mn, down 62.1% YoY and 27.6% QoQ.
- EBITDA margin stood at 6.9%, down 1181bps YoY and 199bps QoQ. Net loss stood at Rs5,180mn.
- R&D cost stood at Rs3,442mn (8.9% of total sales). The company reported a capital expenditure of Rs1,577mn in 4QFY22.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
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