Research house maintains “hold” call on traditional healthcare group, lowers target price to 99 sen.
The principal business of Beshom involves wholesale and retail, multi-level marketing, pharmaceutical manufacturing and Chinese medicinal clinics.
This expectation is rooted in the projected impact of rising wages and government stimulus measures on the industry’s recovery. This was due to reduced revenue stemming from diminished consumer confidence, decreased consumer spending, and increased marketing expenses. Meanwhile, revenue dropped 13.97% to RM38.94 million from RM45.27 million, and EPS fell to 0.89 sen from 1.9 sen.The ongoing uncertainty in both domestic and international economic conditions, along with rising inflation and diminished consumer buying power, continued to negatively impact MLM distributors, its filing said.