Mega Lifesciences (MEGA), a healthcare products manufacturer, saw its share price soar to a new high on Tuesday, after announcing record high third-quarter profits backed by wellness trends amid Covid-19.
MEGA peaked at a new high of 53.75 baht, up 13.16 per cent, during the morning session.
The company reported better-than-expected net profits at 613 million baht, an increase of 79 per cent year-on-year, driven by higher revenue contribution from high margin products.
“We expect 4Q21 earnings to continue to grow year-on-year supported by seasonal factors as people give new year gifts, new healthy products, and demand from healthcare trends,” said an analyst at Country Group Securities.
Mega Lifesciences is Indochina’s market leader in healthcare products such as nutraceutical products and prescription pharmaceutical products. It also exports products to Sub-Saharan African countries.
Following the solid results, Country Group revised up the target price for MEGA to 52 baht, while a Financial Syrus analyst upgraded the price to 63 baht.
Finansia Syrus’s Jitra Amornthum noted that the company’s earnings proved that uncertainty in Myanmar had affected just a little of the overall performance.
Mega was one of the Thailand-based companies affected by the military coup in Myanmar earlier this year that froze many economic activities and weakened its local currency.
“The company’s profits will grow further as health-conscious trends will run in the long term,” said Jitra.