Monday 25 March 2013

Caring Pharmacy Group Berhad & Pharmacy Industry in Malaysia

In 2012, there were 2,095 community pharmacies in Malaysia.

As at 31 December 2012, Caring has a total number of 76 community pharmacies operating under the name of 'CARiNG". For FYE 31 May 2012, Caring achieved revenue of RM248.28m, or on average RM3.27m/ pharmacy.

RM[x]m, representing approximately 41.15% of the gross proceeds will be utilised towards expansion of new community pharmacy outlets, setting up 25 to 30 new community pharmacies in Peninsula Malaysia.

Major suppliers (supplies more than 10% of total products offering)
Zuellig Pharma Sdn Bhd
DKSH Malaysia Sdn Bhd

Average revenue per type of outlet

Shopping complex: RM3.86m/outlet
Street outlet: RMRM2.89m/outlet
Specialised retail centre: RM2.35m/outlet

Capital and Set-up Costs
The barriers to entry into the community pharmacy industry are relatively low based on capital requirements (excluding land and building)

The capital requirements of setting-up an independent community pharmacy would be between RM200,000 to RM400,000 which includes both renovation costs (fixtures and fittings) and stocks. An independent community pharmacy of this size is estimated to generate revenue of approximately RM0.5m to RM3m per year

At this level of entry, the set-up cost is for one outlet size of a typical shop-lot of approximately 1,700 square feet.

Separating Prescribing and Dispencing Functions
Medical practitioners are currently allowed to dispense medicine for the treatment of their patients. However, the Malaysian National Medicines Policy under the Ministry of Health recognises the importance and the need of separating prescribing and dispensing functions in the future.

If the separation materialises, a significant proportion of scheduled drugs currently prescribed by medical practitioners and dispensed by healthcare institutions, will be dispensed through community pharmacies. This would have a significant and positive impact on the community pharmacy industry in Malaysia.

Recommended Requirements for Pharmacists
According to the World Health Organisation, in order for optimal healthcare to be delivered in a developed nation, a 1:2000 pharmacist-to-population ratio is recommended.

Based on a population of 29.3m in 2012, the recommended requirement for pharmacists in Malaysia is approximately 14,650 pharmacists.

In 2012, there were 9,886 fully registered pharmacists and 1,208 provisional registered pharmacists in Malaysia, compared to the estimated national requirement of 14,650 pharmacists.

Percentage of cost of sales to revenue was within the range from 72.77% to 74.17%

Selling and distribution expenses (including staff cost, rental of premises) is an average of approximately 12% of total revenue

Administrative expenses (directors' remuneration, printing and stationery, purchase of small value assets, telephone charges, general purpose and staff related insurance, fees for professional services, staff costs) have contributed an average of approximately 7.5% of total revenue

Depreciation of property, plant and equipment represent about 5% of the total operating expenses


Currently Boilerm is the 4th largest stock in Ace Market, after YTLE, GDEX and BAHVEST

Palm oil mill owners are Boilermech's main customers.

In July 2007, it made a 130-tonne per hour biomass boiler - its largest to date - for a sugar mill in Lampung, Indonesia, that belongs to a unit of billionaire Robert Kuok's PPB Group Bhd. The Boilers are very big. That one was seven storeys high and took at least four months to install on site. All in, the process took about 1.5 years for the RM6.8m contract.

The smaller boilers process 10 tonnes per hour.

Glove makers are also buying biomass boilers to cut energy costs as the price of gas rises.

PPB associate Wilmar International Lted, Kuala Lumpur Kepong Bhd, Tradewinds Plantation Bhd and Sime Darby Bhd continue to be among Boilermech's notable customers.

The Group's production capacity is set to rise from 5 boilers to at least 8 per month by August and 10 per month by year-end with the acquisition of an adjacent facility in Taman Perindustrian Subang. This capacity should be sufficient for the coming 2 to 3 years. He does not rule not the possibility of additional production space being acquired should strategic assets become available.

The Edge 25 March 2013

Friday 8 March 2013

I-Bhd Aims For Jump in Profit From I-City Development This Year

Source: Bernama
8 March 2013

KUALA LUMPUR, March 8 (Bernama) - I-Bhd is aiming for a jump in profit from the property and tourism segments of I-City this year to more than RM50m from RM18m in 2012.

I-City is a RM5b development in Shah Alam and set over 29.14ha (72acres). It is also a MSC Malaysia Cyberjaya township and an international business hub.

It comprises corporate, leisure and residential components, including a shopping mall, office towers, cyber office suites, hotels, serviced apartments and data centres.

I-City has also been declared a tourism destination and international park.

I-Bhd Executive Chairman Tan Sri Lim Kim Hong said the main profit drivers at I-City will be the increasing revenue stream from ongoing and new property projects as well as upcoming leisure attractions.

He said the leisure division in I-City had been achieving double-digit growth since its opening in December 2009.

"In 2012, the revenue was RM32m, double that for 2011," he added.

The Group expects the same growth trend for 2013 driven by increased attendance at the existing attractions, as well new ones.

"A new attraction in 2013 will be an Interactive Wax Museum, Red Carpet," Lim told Bernama.

He said the Red Carpet, due to be opened to the public in August, will provide visitors with close to real-life simulating experiences with renowned celebrities, political figures and legendary icons, among others.

"With an investment of between RM20m to RM25m, it comes with audio and motion automated figures of over 100 human characters.

"We believe the I-City theme park in Shah Alam is well positioned to tap into the tourism market," he added.

According to Lim, I-City attracts an average of 90,000 visitors weekly and with the completion of new attractions, it has the potential this to increase to 20% more.

He said while the main revenue contributor over the past few years had been the leisure division, this is set to change in 2013, with the property development division, expected to set the pace.

"For this year, the group expects to launch phase 1 and 2 of the Residential Incubator Development project in I-City, comprising 4 tower blocks of MSC Malaysia status small office home offices, with retail components and ranging between 33 and 43 storeys each," he added.

The project has a total GDV of RM1.1b on 4.85ha (12 acres), to be developed over 3 phases.

"The first phase with a GDV of RM331m is to be launched next month, phase 2 in August and phase 3 in 2014," Lim said.

As for 2014, Lim said I-Bhd is targeting a profit of RM100m to be derived from both the property and tourism segments of I-City, as well as the luxury condominium property development project in Jalan Changkat Kia Peng in Kuala Lumpur.

Summary of recent changes to minimum wage legislation in Asia

Key Points
Plan to raise MW to 40% of average urban salary by 2015. Average 15% rise in MW across 13 provinces in 2012.
Hong Kong
Government approves 7% MW hike to HKD30 (US%3.86) in February 2013. Set to impact 250,000 workers, or 7% of workforce.
Nominal MW level varies on state-by-state basis. Carpet 3.3% increase for workers enacted in October 1 2012.
MW in Jakarta raised by 44%. 30-45% hikes on a region-by-region basis.
Monthly MW of MYR900 (US$289) came into effect on January 1 2013.
Daily MW increased by 4.7% to PHP446 (US$10.9) in 2012. Further hikes expected in 2013.
Workfare Income Supplement for all workers earning below SGD1,900 (US$800) and other measures under discussion.
South Korea
Outgoing government increased 2013 MW by 6.7% to KRW4,860 (US$4.50) in August 2012.
MW to be increased to TWD109 (US$3.70) in 2013 if real GDP growth exceed 3% for two quarters and jobless rate below 4%.
MW raised across the board in 2013. Will rise by 35% nationwide to match the THB300 (US$10) daily wage in Bangkok.
MW to rise 16-18% in 2013 across the country as a whole. Ho Chi Minh to see 35% increase to VND2.7mn (US$130) per month.

Source: BMI, Local Newspaper Reports, Bloomberg

Friday 1 March 2013

Retail Malls Trade Sector Analysis

Extracted this from Pavilion REIT annual report 2012. Make one conclusion out of the chart...

Tenants in retail malls that are selling products targeting the ladies market have to pay higher rental rate... Of course the additional cost is passed on... :p