The Straits Times / The Business Times News on AsiaPharm

AsiaPharm chairman buys 1.14m shares

THE executive chairman of AsiaPharm Group, Mr Liu Dianbo, bought 1.14 million shares on the open market earlier this week, casting a big vote of confidence for the company.

According to filings with the Singapore Exchange (SGX), he bought 228,000 AsiaPharm shares at an average price of 57.9 cents on Tuesday.

This was followed by a far bigger purchase of 915,000 shares at an average price of 58.4 cents the next day.

The latest buys hoisted Mr Liu's deemed interest in AsiaPharm to 52.3 per cent from 52.02 per cent. His direct stake was unchanged at 3.93 per cent.

The transactions reflect his confidence in the company, following a series of glowing reports by analysts, said a dealer.

Stockbroking firms DBS Vickers, GK Goh and UOB Kay Hian all have 'buy' calls on AsiaPharm, while BNP Paribas rates the stock as 'outperform'.

In a May 4 report following AsiaPharm's release of first-quarter results, GK Goh said: 'Since its listing less than a year ago, AsiaPharm has not only delivered on generating growth but has also laid the foundation for medium-term growth.'

Setting a price target of 86 cents for AsiaPharm, GK Goh said that the stock provided exposure to China's fast-growing pharmaceutical market.

AsiaPharm has also lined up an 'interesting pipeline of new products' and is exploring opportunities to buy into products or companies, it added.

Yesterday, the stock closed one cent down at 58 cents.

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