- Adventa’s 4Q16 net profit tumbled 81.4% to RM141,000, mainly due to higher operating and marketing expenditure for the home dialysis services business.
- This was despite its revenue for the quarter rising 5.2% to RM10.6 million.
- For the full year, the group’s net profit slid 78.3% to RM670,000, on the back of a 4.7% decline in revenue to RM39.9 million.
- Hong Leong IB Research has maintained its ‘Hold’ rating on Adventa, with a lower target price of RM0.66.
Significance: Hong Leong IB Research commented that going forward, it expects Adventa to be subjected to higher operating expenses and margin pressures, due to the weaker ringgit.