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.