Analyst Expects IP’s Earnings to Spike in 2021, Recomm. “BUY” with a TP of ฿27.10
Analyst Expects IP’s Earnings to Spike in 2021, Recomm. “BUY” with a TP of ฿27.10
Analyst Expects IP’s Earnings to Spike in 2021, Recomm. “BUY” with a TP of ฿27.10
2 เม.ย. 2564

With professional experience in the pharmaceutical and food supplement industry, Inter Pharma Public Company Limited (IP) is expected to continue in a long-term robust earnings growth path. 
 
To strengthen the company, IP has grown its business through the M&amp;A strategy including the acquisition of Modern Pharma Co., Ltd., the producer and distributor of pharmaceutical and medical products, in November last year.
 
In January 2022, IP announced the establishment of new joint venture company Interpharma-ZEAvita for research, development, manufacturing and distributing nutritional supplements. The JV is expected to start its production at Modern Pharma plant in the second half of this year. 
 
And later in February, the company purchased the assets including land plot, pharmaceutical manufacturing factory and machinery Teva Pharma (Thailand) Co., Ltd.
 
IP set a revenue growth rate target per annum of 25%, and also planned revenue from sales to reach 2,000 million baht by 2024 or representing 45.8% growth annually in 2020-2024, mainly from the existing businesses and M&amp;A strategy.  
 
Trinity Securities estimated IP’s revenue in 2021 of 834 million baht, increasing 88.6% YoY and in 2022 of 1,115 million baht, as the results of profit recognition from M&amp;A deals between the year 2020-2021. 
 
Key revenue drivers are from existing core businesses and new business expansions. Existing business would generate about 534 million baht revenue to IP this year, an increase of 24% YoY, due to an improving healthcare product sales under its own brands such as Probac7 and PreBo. Meanwhile fresh business acquired would distribute approx. 280 million baht.
 
Additionally, Trinity saw a collaboration with TU to launch new nutraceuticals products and food supplement products would boost IP to grow by leaps and bounds. 
 
For IP’s earnings outlook, net profit this year is expected to stand at 134 million baht (+148.7% YoY), and at 223 million baht in 2022 (+33.8% YoY) with NPM of 16% and 2020-2022 CAGR of 82.4%, thus, recommending “BUY” on IP with an upgraded target price of ฿27.10/share.