KUALA LUMPUR (March 7): CIMB IB Research has maintained its Reduce call on Hovid Bhd with a sum-of-parts based target price (TP) of 30 sen today, despite the reissuance of the pharmaceutical company’s manufacturing licence for its Chemor plant which was suspended by the Health Ministry on Jan 9, 2017. “Although the delay in the reissuance of the manufacturing licence for the Ipoh plant is slightly negative, we still view this net development as an overall positive. This is due to the fact that Hovid’s Chemor Plant contributes 70% of its total capacity,” the research firm said. CIMB IB said net impact of the licence reissuance is within expectations and hence, it will not be making any changes to its Reduce call. At 10.36am, Hovid shares increased 3 sen or by 9.52% to 35 sen, with some 51.1 million shares traded.

Source: The Edge Markets March 07, 2017 03:11 UTC