JAKARTA - Amid the outbreak of the COVID-19 pandemic, the performance of a pharmaceutical company, PT Kalbe Farma Tbk (KLBF) is projected to improve, even though it still has to import raw materials from China.
Head of Research of Samuel Sekuritas, Suria Dharma, as quoted by Bisnis.com on Wednesday (15/4) said that the demand for medical supplies such as medicines, vitamins, and medical devices became a positive catalyst for the company.
Therefore, Samuel Sekuritas recommended the shares to Kalbe Farma to investors. Suria estimates Kalbe's revenue can grow by 6.7%. while its net profit is projected to grow by 5%. However, the growth of generic drugs is expected to continue to put pressure on the company's GPM (gross profit margin).
This year, Kalbe will allocate a capital expenditure (CapEx) budget of Rp 1 trillion, mostly for the relocation of its factories to Cikarang. The CapEx budget will also be used for research and development to develop new products. (ARM/AR)