Stock Today: Pharmaniaga Rises 3.77% As Investors Eye PN17 Exit
Shares of Pharmaniaga Bhd gained 3.77% to RM0.275 as of 11.46am, continuing their upward trend as investors remained optimistic over the company’s improving fundamentals and potential exit from Practice Note 17 (PN17) status.
The counter, which opened at RM0.265 and traded between RM0.265 and RM0.280, saw an active volume of 33.39 million shares. Buy and sell quotes stood at RM0.27 and RM0.275 respectively, reflecting firm buying interest ahead of its third-quarter results.
MBSB Investment Bank Bhd (MBSB Research) maintained its BUY call on Pharmaniaga with an unchanged target price of RM0.32, highlighting the group’s strengthening turnaround momentum and anticipated PN17 uplift. The research house said management remained confident of declaring dividends by FY26, targeting a payout ratio of 50% to 70% of profit after tax and minority interests (PATAMI).
According to MBSB Research, the logistics and distribution segment continued to underpin growth, with SKU volumes in the first half of FY25 already surpassing full-year FY24 levels due to the activation of new government concession products under the Approved Product Purchase List (APPL).
Pharmaniaga’s 3QFY25 results are expected to show improvement, supported by higher government concession orders. A moderation, however, is anticipated in the fourth quarter as public sector demand typically tapers off towards year-end. The group has also reduced borrowings by about 4% year-on-year in the first half of FY25, easing financing costs and improving its balance sheet.
Progress on its insulin manufacturing facility under Pharmaniaga Lifesciences Sdn Bhd also remains on track. Equipment validation for production lines and sterile systems has been completed, with regulatory approval for commercialisation expected by the second half of 2026. Vaccine production is scheduled to follow in 2027, beginning with the PV13 vaccine before expanding to the hexavalent 6-in-1 range in 2028–29.
MBSB Research noted that Pharmaniaga’s new 9,000-square-metre facility, capable of producing 2.5 million doses per month, positions it well to serve Malaysia’s demand for 25 million insulin doses annually among four million diabetic adults.
On the commercial front, the group’s Human Insulin products have already secured RM3 million in tenders from teaching hospitals, while the Influenza vaccine launched in March 2025 generated RM1.5 million in sales by mid-year. Five newly launched generic drugs added RM750,000 in sales, with full-year contributions expected to reach RM3 million.
MBSB Research maintained its FY25–27 forecasts and reaffirmed its positive stance on Pharmaniaga, citing its resilient concession-based revenue stream and strategic expansion into biopharmaceuticals. However, it cautioned that currency fluctuations in its Indonesian operations and uncertainties over future government contracts for insulin supply remain key risks.
At the current level, Pharmaniaga offers an estimated total return potential of 18.5%, according to the research house.
