MEGA says they will thrive despite surging COVID-19 caseload in Myanmar

Mega Lifesciences PCL (MEGA), a leading international manufacturer and distributor of healthcare products, said that the company would remain resilient amid the worsening coronavirus outbreak in Myanmar. 

MEGA operates its health and wellness industry as a pharmaceutical, nutraceutical product and Fast Moving Consumer Goods (FMCG) supplier in developing countries with high growth trends.

Maxxcare is a sub-segment brand of MEGA, operating in three countries, namely, Myanmar, Vietnam and Cambodia. 

Myanmar accounts for 73.5 per cent of the market for 2020 first-half revenues.

Myanmar lockdown

Yangon is now under lockdown as the city is the outbreak hotspot of the country. The lockdown measures have halted economic activities with almost all businesses closed and the government demanding people to stay indoors. 

As of Tuesday, there were new 897 cases and 30 new deaths reported. This brings the total number of infections to 11,631 and 256 deaths so far. 

Vivek Dhawan, MEGA’s Chief Executive Officer, told Thai Enquirer via a phone call that the company is implementing a virus-free environment to ensure that employers can still operate the supply chain. 

“Although there will be some slowdown from the store closure from the cities’ lockdown, our healthcare products still have high demand,” the CEO said. 

“Even before the city went under lockdown, there were people panic buying medical supplements which increased our sale growth.” 

MEGA reported 303 million baht profit in the second quarter of 2020, a 37.5 per cent increase year-on-year.

“Due to the company’s large portfolio, we believe that the company can still manage the impact from the outbreak,” Vivek added.

Second half of 2020

An analyst at KGI Securities expected MEGA’s earnings to improve with an increase in consumption, rising demand of healthcare supplement and the typical high season in the last quarter.

“MEGA supplement sales should be boosted by the ongoing COVID-19 pandemic, which should increase public awareness of self-care,” said KGI. 

KGI rates ‘Neutral’ on MEGA at a target price of 37.00 baht.

Shares of MEGA traded on Tuesday at 3:06 p.m. at 35.75 baht, down 0.50 baht or -1.38 per cent, with a transaction value of 12.6 million baht.

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