KUALA LUMPUR (Nov 28): CCM Duopharma Biotech Bhd announced today a net profit of RM12.29 million for its third quarter ended Sept 30, 2018 (3QFY18), up 10.4% from RM11.13 million a year-ago, due to higher demand from both the private and public sector.

Revenue came in 9.1% higher at RM125.84 million, compared with RM115.38 million previously.

For the cumulative nine-month period, net profit stood 9.7% higher at RM33.27 million, versus RM30.33 million in the corresponding quarter last year. Revenue for the period under review grew 7.7% to RM383.09 million, from RM355.73 million in the same period last year.

Going forward, CCM Duopharma said it expects to achieve satisfactory results for its full fiscal year, but cautioned of manufacturing pressures, given the recent strengthening of the US dollar.

At the time of writing, the ringgit is trading at 4.2013 against the greenback, its weakest since Nov 9, 2017.

“[The] recent strengthening of United State Dollar (USD) globally poses challenges to CCMD, as it affects our production and other operation costs. It will put pressure on manufacturing margin and hence our profit thereof,” read the filing today.

However, the filing noted that the Pakatan Harapan-led government’s maiden budget, tabled earlier this month, has seen an increased allocation for health services to RM29 billion.

“It (the allocation) includes RM10.8 billion to restore clinics and hospitals, as well as purchase of medicine and medical equipment. These opportunities may be favourable for the company,” the group said.

The group will continue its foray into the specialty products as one of its strategies moving forward, to create a pool of niche products, it added.

Shares of CCM Duopharma settled unchanged at RM1.07 at closing bell today, for a market capitalisation of RM708.21 million.