PHARMA (7081) - Technical and Fundamental Analysis

Technical Analysis


- PHARMA shares price was very volatile and we believe that it was a miss-match between market expectation and company performance.

- On Oct 15, 2019, there is a strong reversal pattern in PHARMA shares price without any positive news. There is always got "People" who know the fact and prepare to speculate shares price to rob small investors' hard-earned money.

- Within a month, PHARMA announced that it is extending its services for the provision of medicines and medical supplies to MOH facilities and secured a five (5) year contract to continue providing logistics and distribution services for MOH.

- We should always remind ourselves and do our own homework to buy-sell any shares in the realistic market. There is no mercy and professional investor in the capital market. Only Winner and Losser!

- PHARMA shares price still continues long team downward trend since Apr 28, 2015, from a historical high RM6.635.

- Resistance (2): RM2.615

- Resistance (1): RM2.430

- Support (1): RM2.00

- Support (2): RM1.918

Fundamental Analysis


- PHARMA corporate value shows a negative position -RM0.551 due to high borrowing level (RM724M) and low total cash & cash equivalent (RM39.42M)

- Debt to Equity 2.699 and Quick ratio 0.32 are showing PHARMA has a tight cash flow in the last 4Q.

- Lower profit margin ratio 1.25% further concludes that PHARMA doesn't have an advantage in pricing control and it is the lowest since 2012.


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