SEHK:1873Life Sciences
Viva Biotech (SEHK:1873) Stock Faces Profit Strain Behind Revenue Growth
Viva Biotech Holdings closed at HK$1.435 on Thursday, roughly flat over the past month after a soft 7 day patch. Traders appear cautious. The headline from the half year update is not the revenue line, which came in at C¥1,006.5m, but the pressure on profitability and quality of earnings.
Net profit margin over the past 12 months sat at 9.4% and relied on a sizeable C¥103.3m one off gain. For anyone with a multi year horizon, the key question now is how sustainable that earnings base is once...