KUALA LUMPUR (Oct 31): Kenanga Research has started coverage of Malaysian Genomics Resource Centre Bhd (MGRC) with an “outperform” rating at 67 sen and target price (TP) of RM1.07 and said the company is poised for strong growth backed by the rising adoption of immunotherapy in the treatment of diseases, especially cancer.

In a note on Monday (Oct 31), the research house MGRC owns the exclusive rights to distribute, produce and commercialise therapeutics for personalised healthcare, and produces CAR T-cells for solid cancer immunotherapy in the Asean region under a 10+10 year licensing agreement.

“We project MGRC’s net profit to resume its growth trend in FY2024, rising 37% y-o-y driven largely by the rising demand for its high-margin biopharma/cancer immunotherapy.

“This follows a 14% contraction in earnings in FY2023 due to the slowing vaccine distribution business [as the pandemic comes to an end] and start-up costs incurred at its new laboratory,” it said.