Hyphens Pharma recently announced its 1st quarter 2020 results ended 31 March 2020.
I have to say that its results are pretty impressive. Compared to the previous year, 1Q 2020 revenue came in at 16.1% higher to $31.4 mil and net profits surged 48.6% to $2.12 mil.
Dividends were also hiked up to $0.01 from $0.0055 last year, which translates to a 4% dividend yield based on its share price of $0.25.
There are much more things to cover but let’s check out the company’s profile first.
About Hyphens Pharma
For a quick background, Hyphens Pharma International Limited (SGX: 1J5) is Singapore’s leading specialty pharmaceutical and consumer healthcare group.
With a long history dating back to 1998, Hyphens has a direct presence in 5 ASEAN countries – Singapore (HQ), Indonesia, Malaysia, the Philippines and Vietnam, and is supplemented by a marketing and distribution network covering 6 other markets – Bangladesh, Brunei, Cambodia, Hong Kong, Myanmar and Oman.
The group operates in 3 main segments:
- Specialty Pharma Principals – premium quality specialty pharmaceutical products including Stérimar® nasal sprays, Bausch+Lomb eye drops, Vivomixx™, Fenosup® Lidose® and Piascledine®.
- Proprietary Brands – Hyphens’ own proprietary range of dermatological products (Ceradan® and TDF® brands) and health supplement products (Ocean Health® brand).
- Medical Hypermart & Digital – wholesale of pharmaceuticals and medical supplies in Singapore through Pan-Malayan Pharmaceuticals – a medical hypermart that many healthcare professionals (i.e. doctors) are familiar with.
Next up, I will also share 5 things I like about the company.
#1 Simple and Scalable Business Model
First of all, Hyphens Pharma business model is easy to understand – selling of derma and supplement products. Once you can get things up and running, it’s pretty much a recurring stream of revenue for each product line.
To add on, I like how they acquired Health Supplementbrand –Ocean Health which gives them a strong retail distribution channel.
With that, they can also sell their higher profit margin, proprietary range of dermatological products – Ceradan® in Guardian, Watsons, Unity etc. and TDF® in pharmacies located in hospitals.
Throughexclusive distributorship or licensing and supply agreements with brand principals mainly from Europe and the United States, the group also sells products likeStérimar® nasal sprays, Bausch+Lomb eye drops, in selected markets in the ASEAN region.