Square Pharmaceuticals PLC: 1 director

A director at Square Pharmaceuticals PLC bought 1,500,000 shares at 0.000BDT and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last tw...

Square Pharmaceuticals: NPAT fell c6% yoy due to 306 bps GM fall, 230b...

* Earnings fell c6% yoy in Q3 FY23. Earnings stood at BDT 4,283 mn (BDT 4.83) in Q3 FY23 against BDT 4,570 mn (BDT 5.15) in Q3 FY22. This rise was mainly driven by 306 bps decline in gross margin, 230 bps opex to sales rise and 221 bps effective tax rate rise. In 9M FY23, earnings stood at BDT 14,909 mn (BDT 16.82) against BDT 14,211 mn (BDT 16.03) in 9M FY22, implying c5% yoy growth. * Revenue rose c8% yoy in Q3 FY23. Revenue stood at BDT 15,887 mn in Q3 FY23 against BDT 14,650 mn in ...

Square Pharmaceuticals: Q2 FY23: c10% earnings growth driven by growth...

* Consolidated earnings rose c10% yoy in Q2 FY23. SQURPHARMA’s EPS in Q2 FY23 stood at BDT 5.78 which is in line with expected EPS of BDT 5.76. This growth in earnings was mainly driven by c14% growth in revenue and c32% growth in other income. However, the drivers were slightly offset by 44 bps gross margin dip, 65 bps Opex/Sales rise, and c3% decline in associate’s earnings. * Consolidated net revenue rose c14% yoy in Q2 FY23. SQURPHARMA generated a c13% yoy growth in local sales and ...

IDLC-SL Pharma Sector Update: For the quarter ended Q1 FY23

* Sector revenue rose c4% yoy in Q1 FY23. Single digit industry revenue growth in Q1 FY23 can be attributed to the base effect of Q1 FY22. In Q1 FY22, as the economy resumed and doctors returned to their practices, the sales of prescription drugs rose which led to c. 20% revenue growth that quarter. In Q1 FY23, ACME, Navana, Renata, Square significantly outperformed the industry. ACI Pharma and Beacon significantly underperformed the industry as their yoy growth rates fell by c19% and c11% r...

Square Pharmaceuticals: Q1 FY23: EPS rose c10% yoy, due to higher reve...

* EPS rose c10% yoy in Q1 FY23. EPS in Q1 FY23 stood at BDT 6.20 against BDT 5.64 reported in Q1 FY22. Major drivers include 8% revenue growth, BDT 399mn foreign exchange gain and 39 bps rise in gross margin. If earnings were adjusted for foreign exchange gain, earnings growth would stand at c2% yoy. Associates — which contributed c9% to total earnings — grew c18% yoy, driven mostly by SQUAREFASHION’s c61% yoy earnings growth. * Revenue rose c8% in Q1 FY23. Revenue rose to BDT 16,070 mn...

Square Pharmaceuticals: Earnings growth +14% yoy in FY22, c49% dividen...

* Earnings growth +14% yoy in FY22, -8% yoy in Q4 FY22. EPS in Q4 FY22 stood at BDT 4.48 against BDT 4.87 in Q4 FY21, implying an 8% de-growth. In FY22, SQURPHARMA reported EPS BDT 20.51 against BDT 17.99 in FY21, implying a 14% growth. * Actual EPS of BDT 20.51 in FY22 fell short of our estimate of BDT 21.1. We believe this shortfall occurred may be the result of SQURPHARMA failing to implement the measures required to avail the benefit of having corporate tax lowered to 20.5% from 22....

Equity Insight on SQURPHARMA

Square Pharmaceuticals Ltd (SQURPHARMA) manufactures and markets generic pharmaceuticals products, basic chemical products, animal health products. Additionally, the company is engaged in the marketing of pesticide products.

Square Pharmaceuticals: Q1 FY22: 27% EPS growth driven by 18% sales gr...

* SQUARE reported BDT 5.6 EPS (NPAT BDT 4,997mn) in Q1 FY22, implying c27% growth over BDT 4.4 EPS (NPAT BDT 3,932mn) in Q1 FY21. The growth in earnings is driven by c18% YoY growth in top-line revenue and substantial growth in the textiles associates. In addition, YoY lower effective tax rate by 274 bps due to tax cut in FY21 national budget, further contributed to the bottom line. * Revenue reached BDT 14,877mn in Q1 FY22, implying c18% YoY growth. The local sales jumped up by c19% Y...

Square Pharmaceuticals: Annual FY21 – c19% yoy earnings growth meets o...

* EPS of the company stood at BDT 18.0 (NPAT BDT 15,940mn) in FY21, implying c19% growth over BDT 15.1 (NPAT BDT 13,355mn) in FY20. The annual earnings of the company is in line with our expected EPS of BDT 18.3 in FY21. * Q4 FY21 EPS stood at BDT 4.86 against BDT 3.22 in Q4 FY20, thus implying c51% earnings growth yoy. * SQUARE declared BDT 6.0/share cash dividend (c33% pay-out) in FY21 against BDT 4.5/share cash dividend (c30% pay-out) in FY20. The dividend declaration for FY21...

Square Pharmaceuticals: Q3FY21 – c7% yoy NPAT growth driven by c5% sal...

Earnings grew by 6.8% yoy in Q3 FY21 and 10.8% yoy in 9M FY21. EPS in Q3 FY21 was BDT4.4 (NPAT BDT3,862mn) against BDT4.1 (NPAT3,615) in Q3 FY20. The EPS in 9M FY21 was BDT13.1 (NPAT BDT11,632mn) against BDT11.8 (NPAT BDT10,501mn) in 9M FY20. We expected c11% growth in both Q3 FY21 earnings and 9M FY21. The quarterly earnings underperformed our expectation but the 9M earnings are similar to our expectation. Revenue grew by 5.2% yoy in Q3 FY21 and 9.1% in 9M FY21. Though its revenue from the p...

Square Pharmaceuticals: Q2FY21 – c9% yoy earnings growth driven by c11...

Earnings grew by c8.7% yoy in Q2 FY21 and c12.8% in H1 FY21. EPS in Q2 FY21 was BDT4.3 (NPAT BDT3,838mn) against BDT4.0 (NPAT3,532) in Q2 FY20. The earnings in the second quarter missed our expectation by c4.0% due to a decline in its other income as interest income from cash holding declined due to the low market interest rate. The EPS in H1 FY21 was BDT8.8 (NPAT BDT7,770mn) against BDT7.8 (NPAT BDT6,886mn) in the preceding year. Revenue grew by c11.1% yoy in Q2 FY21 and c11.2% in H1 FY21. T...

Equity Note on Square Pharmaceuticals Ltd

Square Pharmaceuticals Ltd (SQURPHARMA) is the market leader of pharmaceutical industry in Bangladesh with possession of 16.45% market share by the end of June 2020. Company has strong fundamentals compared to other pharmaceutical companies. They have 11 blockbuster drugs ranked within top 30 drug list of the country. Company is well-known for their good corporate governance and historically showed consistent performance. Ground work of setting up a subsidiary manufacturing plant in Nairobi, Ken...

Stock dividend adjustment for SQUARE and BXPHAR

SQUARE and BXPHAR declared 5% and 10% stock dividends respectively for FY20. Square's record date was on 22nd November 2020 and BXPHAR's record date is on 25th November 2020. SQUARE's post-record date TP stands at BDT255, after adjusting for the 5% stock dividend. The TP implies 15.0x FY21 P/E based on stock-dividend adjusted EPS of BDT17.0. BXPHAR's post-record date TP stands at BDT136, after adjusting for the 10% stock dividend. The TP implies 14.5x FY21 P/E based on stock-dividend adjusted...

Square Pharmaceuticals: Q1 FY 21 – c17% yoy NPAT growth driven by top-...

Q1 FY21 earnings growth stood at c17% yoy, surpassing expectations by 13%. EPS stood at BDT4.7 (NPAT BDT3,932mn) in Q1 FY21 against BDT4.0 (NPAT BDT3,354mn) in Q1 FY20. Major drivers of the earnings growth are c11% yoy growth in revenue, 108bps improvement in EBIT margin, c23% increase in other income and profit boost from the textiles associates. Square’s 11.4% yoy revenue growth in Q1 FY21 beats the average growth of listed pharma companies by 240bps. Average revenue growth of the six liste...

Square Pharmaceuticals: Q3 FY 20 – NPAT grows c16% yoy due to sales ...

Q3 FY20 revenue growth stood at c11% yoy; SQUARE may outperform its peers during the pandemic. During 1H FY20, SQUARE maintained a c5% average revenue growth. Including Q3 FY20, the 9M FY20 average growth rate has reached c7%. In FY19, we observed that Square maintained single-digit revenue growth in the first half (1H) and then generated double-digit revenue growth in the second half (2H), resulting in a c11% yoy annual growth. In FY20, SQUARE has maintained a similar pattern in the first ni...

Bangladesh pharmaceuticals: Unique sales trend, rate cap lessen Covid-...

The long holiday ended; business activities cautiously re-opened on 31 May. The 66 days of holiday, which started in late March, comprised 38 days of general holiday (ie lockdowns), 20 weekends, and 8 public holidays. Since Bangladesh identified the first Covid-19 patient on 8 March, it has reported 52,445 confirmed cases, 709 deaths, and 11,120 recoveries till 2 June 2020. Bangladesh. The stock market, which remained closed during the holidays because of the pandemic and transition towards a...

Bangladesh – Economic activities resume; we prefer Telco, Consumer, ...

No more general holiday from 31 May On May 31, 2020, Bangladesh will mark the end of 66-day long ‘General Holiday’ (38 days lockdowns, 20 weekends, and 8 public holidays) as the economic activities resume on a ‘limited scale’. For the next 15 days, all private and public offices and factories are allowed to remain open, complying to the health rules, from 6am to 4pm. However, people are requested to stay home from 8pm to 6am without emergency needs. The stock market was also closed for t...

Bangladesh Pharmaceuticals: Adjusting TPs for stock dilution

Int'l Macro Vision: Global Equity Strategy

Investors have endured turbulent year-to-date price action as volatility has been re-introduced to global markets. Owing to various concerns ranging from rising interest rates to an all-out trade war, most major indexes are testing critical support levels. In addition, market internals have begun to paint a mixed picture. Given the current state of the market, what do technicals suggest is next for global equities? In the short-term we believe the most likely scenario is a continuation of the r...

Updated Equity Valuation report on Square Pharmaceuticlas Limtied

The Pharmaceuticals industry of Bangladesh is expected to grow at a CAGR of 15% over the next five years due to steady economic growth, population growth, growth of income level of people and increased health awareness. Being the leader in the growing pharmaceuticals industry; Square Pharmaceuticals Limited is expected to grow at the same pace with the industry.