AFT Pharmaceuticals

[ronaldson]

Has anyone else noticed the big volume transacted on market this week? Well over half a million shares. Of course, for every buyer there is a seller - but even so its heavy turnover. Next results announcement is November?

[Muse]

Has anyone else noticed the big volume transacted on market this week? Well over half a million shares. Of course, for every buyer there is a seller - but even so its heavy turnover. Next results announcement is November?

aye I noticed that as well ronaldson.

Some of the increase due to some forbar retail and HNW investors bought in on the back of their initiation of coverage report. Sort of annoyed me as I've been watching the squiggly line continue to fall, this interrupted that today. This stock is quite reactive to earning announcements and news flow but it always fades (low liquidity 'pop & flop' I call it). Was hoping it would continue to drop until just before November 24th when half year financials are released. may still do that. I have been waiting out the downtrend wanting to buy a meaningful stake.

Business has a lot of momentum and pretty good visibility on its growth runway. Strong growth in NPAT forecast. One to watch.

[ronaldson]

I didn't know about the initiation of coverage report. Not my brokers. But I agree with all your comments. Surprisingly I have traded this stock a couple of times this year, with minor success. But I purchased my current holding at $3.36 on 19/20 September only to " watch the squiggly line continue to fall " as you put it. But no worries, its restored to health currently and I will certainly continue to hold until the half year financials, may be significantly longer.

[Muse]

I didn't know about the initiation of coverage report. Not my brokers. But I agree with all your comments. Surprisingly I have traded this stock a couple of times this year, with minor success. But I purchased my current holding at $3.36 on 19/20 September only to " watch the squiggly line continue to fall " as you put it. But no worries, its restored to health currently and I will certainly continue to hold until the half year financials, may be significantly longer.

I think FY23 (march YE) will be a good year, but FY24 will be the year its NPAT really fires.
Needs more liquidity.

[peat]

(low liquidity 'pop & flop' I call it).

Haha
buy in flop sell in pop

[Sideshow Bob]

https://www.nzx.com/announcements/402942

AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN: ARBN 609 017 969 investor.relations@aftpharm.com
24 NOVEMBER 2022
FINANCIAL RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2022
AFT extends growth investment as sales surge
HIGHLIGHTS
• Half-year operating revenue up 18.4% to $65.8 million, lifted by a 30% growth in product sales and royalties; growth rate was diluted by lower licensing income
• Gross profit increased by 7% to $28.7 million, with gross profit from product sales and royalties up 31% to $28.6 million.
• Operating profit down to $3.5 million from $5.5 million in the prior year due to lower licensing income and increased Australasian investment to capitalise on growth opportunities.
• Net profit after tax decreased to $1.5 million from $4.2 million
• Net debt at $29.4 million in line with $29.3 million at the end of March 2022
• Targeting near term annual revenue of $200 million, underpinned by strong ongoing demand, product launches and the ongoing Maxigesic commercialisation programme
• Near term growth target supported by $10 million incremental investment in selling and distribution in the Australasian markets.
• New guidance for the FY23 operating profit of $18 million to $23 million down from May guidance of $27 million to $32 million, due to growth investments and deferred license income due to the delay in Maxigesic IV US registration.
• AFT continues to expect to declare a dividend for the year to the end of March 2023
AFT Pharmaceuticals (NZX: AFT, ASX:AFP) today reports financial results for the six months to the end of September 2023 showing the company benefitting from growing demand for its portfolio of medicines, the easing of COVID pressures in most markets and new product launches.

[ralph]

That did not go down well today with the bear ,unlike the sp going down well & truly

[Rawz]

That did not go down well today with the bear ,unlike the sp going down well & truly

Yeah the profit dropping a bit of a surprise. This was on the radar and I thought I might have missed out but maybe not.

Keen to hear FM and Percy’s thoughts

[percy]

I have recently been buying at $3.70.Balance of my order was filled this morning.
The following was the reason for the profit downgrade.
"New guidance for the FY23 operating profit of $18 million to $23 million down from May guidance of $27 million to $32 million, due to growth investments and deferred license income due to the delay in Maxigesic IV US registration."
I now have what I wanted.As I see growth coming from outside NZ, I have been wanting to replace some of the Aussie stocks that I have,that are being taken over,MSL,PTB and PTG and also my selling out of IVZ.
I would think the "growth investments" will work,however I am not sure when Maxigesic IV US registration will happen,but I am sure it will.
I will look to add to the wife's holding sometime.Perhaps a few more for myself too.

[Rawz]

Thanks Percy.

The profit thing with the timing of the license income and investment/ R&D, stock build for launches into new markets etc etc.. i am happy with those reasons.

I think AFT is a real solid company. their revenue CAGR is very consistent, i calculate:

5 year CAGR 13.5%
10 year CAGR 14.4%
15 year CAGR 14.5%

So revenue will double every 7 years.

One thing i thought was a bit avg was their GP margin 44% not sure why but i just assumed big pharma had better margins. (not that AFT is big).

Anyways- i dont hold but might try be greedy and pick some up around 3 bucks if it goes down there