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Northland Capital Partners View on the City - Beximco Pharma (LON:BXP); Sunrise Resources (LON:SRES)

SECTOR: HEALTHCARE; MINING

Beximco Pharmaceuticals (BXP.L)

SECTOR – HEALTHCARE

RATING – BUY*

MARKET CAP – £237m

CURRENT PRICE – 58.5p#

TARGET PRICE – 75p

ANALYST – VADIM ALEXANDRE

Year-end June

2017A

2018E

2019E

2020E

Revenue (BDT Bn)

15.5

17.2

19.0

21.1

EBITDA (BDT Bn

4.2

4.4

4.7

5.4

Adj. pre-tax Profit (BDT Bn)

2.9

2.9

3.2

3.7

Adj. EPS (BDT)

5.49

5.40

5.98

6.80

Net Cash/(Debt) (BDT Bn)

(4.3)

(6.5)

(6.7)

(3.6)

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. 1 GBP = 117 Bangladeshi taka (BDT)

Financial Results for Q3 2017-18

NORTHLAND VIEW

  • Beximco Pharma announced unaudited financial results for the third quarter and nine months ended 31 March 2018.
  • Net sales revenue for Q318 was BDT4.2bn, an 11% increase from Q317: BDT3.8bn
  • Profit before tax for Q318 was BDT0.8bn, a 17% increase from Q317: BDT0.7bn.

Beximco Pharma’s results demonstrate sustained double-digit sales and profit growth, in line with our forecasts. With the Company recently announcing the commencement of export of its third product (Methocarbamol) to the US, Beximco Pharma is carrying out its aggressive export strategy in a high value market which we expect will continue to drive positive results.

COMPANY DESCRIPTION

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

SUNRISE RESOURCES (SRES.L)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £3.0m

CURRENT PRICE – 0.14p#

ANALYST – DR RYAN D. LONG

Year-end Sept

2016A

2017A

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(0.4)

(0.3)

Adj. pre-tax Profit (£m)

(0.4)

(0.3)

Adj. EPS (p)

(0.04)

(0.02)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.05

0.12

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 Joint Broker to Sunrise Resources and therefore this information should be viewed as a Marketing Communication.

MOU for Potential Perlite Offtake

NORTHLAND VIEW

  • Sunrise Resources has signed a non-binding Memorandum of Understanding (‘MOU’) with an established buyer and processor of raw perlite that could potentially lead to a sales contract for perlite from the CS Pozzolan-Perlite Project. The identity of the potential purchaser is being kept confidential for commercial reasons.
  • Under the MOU, the purchaser will make its production plant available for testing perlite from the CS Project. The purchaser will also provide commercial and logistical support during the development of the project.
  • The proposed Offtake Agreement would account for a significant proportion of the perlite production tonnage required to justify the development of the CS Project.

Securing an offtake agreement for a significant proportion of its perlite production from the CS Pozzolan-Perlite Project, located in Nevada, would be an important milestone for Sunrise Resources that would support the advancement of the CS Project toward production. It’s important to note that the current MOU for a proportion of the potential perlite production is non-binding and there remains a risk that it will not lead to a commercial offtake agreement. However, it remains an important first step towards securing an offtake agreement.

COMPANY DESCRIPTION

Sunrise Resources is an exploration company focused on its 100%-owned CS Pozzolan-Perlite Project, located in Nevada

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