KUALA LUMPUR: Investors may have been presented with a buying opportunity in Duopharma Biotech Bhd following the recent decline in its share price and resilient results in the first half of the year.

       According to RHB Research, the pharmaceutical company's 1H21 core net profit was in line with expectations with a core net profit of RM33.5mil representing 45% and 49% of its and consensus full-year estimates.

       "Moving into 2H21F, we expect the company to record sequentially stronger earnings as drug prescriptions recover in both private and public settings," it said in a note.

       Over the past month, Duopharma's share price has retreated 16% which RHB believes could be owing to the recent government and private contract wins by other Covid-19 vaccine companies.

       It added that the cut-off date to fulfill the conditions set by the National Pharmaceutical Regulatory Agency for approval of Sputnik V is end-August, unless the parties agree to an extension.

       However, RHB expects the earnings impact from Sputnik V to be minimal.

       The research house made no changes to its earnings estimates as it awaits more clarity on the company outlook and updates to its vaccine blueprint.

       "Upgrade to BUY, as we believe the current level looks attractive after recent share price weakness. Our TP implies 30x FY22F P/E, or +1.5 SD from its 5-year mean.

       "We believe this is justified given its superior margins compared to other listed pharmaceutical players and its investment into higher-value products such as cancer biologics and stem-cell therapeutics," it said.