Caring Pharmacy Group: Forecast

As part of the group’s expansion plan, Caring is targeting up to 120 outlets by 2016, from the current 97 outlets.

Hong Leong Investment Bank (Hong Leong IB) forecast the setting up of 12 to13 new outlets per annum in the financial year 2015 (FY15) and FY16, which is expected to underpin double-digit prospective revenue and earnings growth, based on its estimates.

As at April, Caring has 97 pharmacies nationwide. In terms of number of outlets, Caring is ranked third after Cosway and Guardian, with an estimated market share of 4%. No single operator controls more than 7% of the market. Within the Klang Valley, Caring has a share of 8%.

Its catalysts are the successful implementation of outlet expansion plans over the next few years to sustain medium to longer-term growth.

FY15 forecast price-to-earnings ratio of 17 times, is on par with other domestic market-oriented retail pharmacy chain operators in the region.

/theSTAR  21-04-2014

Disclaimer: Views or opinions expressed are solely those of the Author and should be used with discretion. The Author shall not be held liable for any acts or omissions arising from the use of the information. The user will be personally liable for any damages or other liability arising hereof.

Post a Comment