Hong Leong Investment Bank said the increase in budget would be beneficial for Pharmaniaga Bhd, on which it had a “buy” call with a target price of RM1.04.aws账号（www.2km.me）提供aws账号、aws全区号、aws32v账号、亚马逊云账号出售，提供api ，质量稳定，数量持续。另有售azure oracle linode等账号.
PETALING JAYA: Healthcare players may see a faster recovery than most other economic sectors as movement restrictions continue to ease both locally and globally.
As the economy adjusts and transition towards a new normal, a continuous recovery in patient footfall is anticipated, as patients return to hospitals to receive treatment for their delayed procedures.
Optimistic on the sector’s recovery, Hong Leong Investment Bank (HLIB) Research has ascribed an “overweight” call on healthcare.
The brokerage noted that the sector would also receive a boost, given the larger allocation of RM32.4bil, or a 1.6% increase, from the previous year that was granted to the Health Ministry (MoH) in Budget 2022.
It said the increase in budget would be beneficial for Pharmaniaga Bhd, on which it had a “buy” call with a target price of RM1.04.
This, it said, was because there would be more drug purchases since the company is the current sole concession holder to distribute drugs and consumables.
Pharmaniaga recently received a one-year extension for its concession business, from Jan 1, 2022.
MoH’s decision to grant an extension did not come as a surprise, the research house said, given Pharmaniaga’s track record and the infrastructure it has in place to handle the concession business.HLIB Research said UEM Edgenta Bhd could benefit from the procurement of new biomedical equipment as well as maintenance of such equipment.It has a “buy” call on UEM Edgenta, with a target price of RM2.23.
“We are positive on this development, as the extension would provide continued earnings visibility for the financial year 2022 (FY22),” it said.
It noted that the government has also set aside a RM4bil budget to combat Covid-19, whereby RM2bil would be used for vaccination expenses while the remaining RM2bil is earmarked to enhance the capacity of public health services.
“The potential procurement of Sinovac vaccines to be used as boosters would also be positive for Pharmaniaga.
“Note that there are currently (about) 11 million Sinovac vaccinated individuals in Malaysia, hence that should translate to a maximum potential demand of (about) 11 million doses of Sinovac boosters,” it noted.