KUALA LUMPUR (Aug 22): Kenanga Research has maintained "market perform" rating on Pharmaniaga Bhd at 59 sen with a lower target price of 59 sen (from 64 sen) and said Pharmaniaga’s 1HFY22 results disappointed largely due to the weaker-than-expected vaccine sales.

In a note on Monday (Aug 22), the research house however said it still likes the stock for its strong earnings visibility backed by a long-term medical supply concession signed with the Ministry of Health (MOH), from which cash flow anchors a dividend yield of more than 5%.

“However, its appeal as a growth stock has diminished with limited demand for its Covid-19 vaccine.

“Hence, we cut our FY22F/FY23F net profit forecasts by 7%/9%, lower our TP by 8% to 59 sen (from 64 sen),” it said.