Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Northland Capital Partners View on the City - Beximco Pharma, Savannah Resources, SkinBioTherapeutics, Premier African Minerals, Starcom & Botswana Diamonds

Northland Capital Partners View on the City - Beximco Pharma, Savannah Resources, SkinBioTherapeutics, Premier African Minerals, Starcom & Botswana Diamonds

Beximco Pharmaceuticals (LON:BXP)

SECTOR – HEALTHCARE

RATING – BUY*

MARKET CAP – £188m

CURRENT PRICE –46.5p#

TARGET PRICE: UNDER REVIEW

ANALYST – LIAM GASCOIGNE COHEN

 

Year-end June

2017A

2018E

2019E

2020E

 

Revenue (BDT bn)

15.51

17.72

 

 

EBITDA (BDT bn)

4.23

4.87

 

 

Pre-tax Profit (BDT bn)

2.89

3.36

 

 

EPS (BDT)

5.49

6.25

 

 

Net Cash/(Debt)  (BDT bn)

(4.3)

(10.8)

Under review

P/E (x)

14.02

12.32

 

 

EV/EBITDA (x)

8.40

8.62

 

 

 

 

 

 

 

 

 

 

 

 

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Broker to Beximco Pharmaceuticals and therefore this information should be viewed as a Marketing Communication. Multiples are calculated using Beximco’s Dhaka Stock Exchange share price (77 BDT).

 

Results for the 12 month period ended 30 June 2018

 

NORTHLAND VIEW

  • Beximco Pharma announced notification of preliminary results for the year-ending 30 June 2018.
  • Net sales increased to BDT17.72B, registering Y/Y growth of 14% (FY17: BDT15.51B). Northland net sales estimates for FY18 were BDT17.17B. 
  • Profit before tax increased 16.2% to BDT 3.36B (FY17: BDT 2.89B). Northland FY18 estimates were BDT3.15B.
  • Domestic sales registered Y/Y growth of 12.5% (Northland estimates were 10%). 16 products were launched in Bangladesh, of which five were launched for the first time.
  • Export sales registered Y/Y growth of 37% (Northland estimates were 20%). Beximco commenced export of its second and third product to the US, became the first Bangladeshi pharma to export to Canada and entered three new countries.
  • In April, the Company completed the acquisition of a majority stake (85.22%) in Nuvista Pharma Limited, a leading manufacturer of hormones and steroids in Bangladesh. This was the Company’s first acquisition as well as the first acquisition in the Bangladeshi pharmaceutical sector.

A strong year for Beximco. Although sales remain dominated by domestic activity, exports sales have grown substantially with the Company now exporting four products to the US, with a fifth product receiving FDA approval in July 2018 (post-period end). Furthermore, the Nuvista acquisition offers potential to accelerate the Group’s revenue growth and earnings in the coming years.

COMPANY DESCRIPTION

Beximco Pharma is a Bangladeshi company which manufactures and sells generic pharmaceuticals.

 

 

SAVANNAH RESOURCES (LON:SAV)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £52.4m

CURRENT PRICE – 6.0p#

ANALYST – BARRY GIBB

                    

 

Year-end Dec

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(1.8)

(2.8)

Adj. pre-tax Profit (£m)

(1.8)

(2.8)

Adj. EPS (p)

(0.46)

(0.53)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.7

1.2

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and provides commissioned research coverage to Savannah Resources and therefore this information should be viewed as a Marketing Communication.

 

Three New Lithium Pegmatites Discovered at Mina do Barroso

 

NORTHLAND VIEW

  • Savannah Resources announced the discovery of three new lithium pegmatites at its Mina do Barroso Lithium Project in Portugal. Reverse circulation ('RC') drilling at the Pinheiro Deposit has returned a series of significant lithium intersections over considerable strike (>250m) and depths (>100m) highlighting the area's potential to host further deposits.
  • Management considers these new discoveries offer significant potential to further increase the current Mineral Resource Estimate of over 20Mt (or some 200,000t contained Li2O) which has already been increased +500% since the Project’s acquisition last year.
  • Key lithium intersections at Pinheiro include: 90m at 1.23% Li₂O from 39m incl. 34m at 1.6% Li₂O from 94m in 18PNRRC005 and 69m at 1.29% Li₂O from 20m incl. 24m at 1.58% Li₂O from 48m in 18PNRRC007, both on partly down-dip intersections.
  • Infill RC at both Reservatorio and NOA deposits also confirm the continuity and grade of the mineral resource estimate reported in February 2018, with lithium mineralisation confirmed over strike lengths of 500m and 400m respectively, and both remain open with further drilling now being planned.

Ongoing drilling at the MdB Project continues to deliver excellent results both in terms of grades and widths. Savannah has outlined what is now the fourth major deposit on the mining lease and highlights the still unconstrained nature of the resource potential of the overall lease area. With prospect work now totaling 275 holes for 23,072m including both RC and Diamond drills, phase 3 of the metallurgical test work programme is ongoing and scheduled to be completed in Q418. These results clearly hold potential to further increase the Project’s Mineral Resource Estimate, enhance the mine’s scheduling flexibility and add to its overall LOM.

 

 

COMPANY DESCRIPTION

Savannah Resources is an energy metals group with copper-gold projects located in Oman, lithium projects in Portugal, and a operates a mineral sands project in Mozambique that is a JV with Rio Tinto

 

 

 

SKINBIOTHERAPEUTICS (LON:SBTX)

SECTOR – HEALTHCARE

RATING – CORP*

MARKET CAP – £21.7m

CURRENT PRICE – 18.5p#

ANALYST – LIAM GASCOIGNE-COHEN

 

Year-end Jun

2016A

2017A

2018A

 

 

Revenue (£m)

-

-

 

No forecasts provided

EBITDA (£m)

(0.0)

(0.7)

(1.0)

Adj. pre-tax Profit (£m)

(0.0)

(0.7)

(1.)

Adj. EPS (p)

(0.03)

(1.11)

(0.71)

DPS (p)

-

-

-

Net Cash/(Debt) (£m)

0.3

3.9

3.2

P/E (x)

-

-

 

Dividend yield (%)

-

-

 

EV/EBITDA (x)

-

-

 

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Joint Broker to SkinBioTherapeutics and therefore this information should be viewed as a Marketing Communication.

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use