Eco Animal Health Share Discussion Threads

[the grumpy old men] 15/9/2023 08:40

OVERLY OPTIMISTIC ME THINKS but nice trend up

[smackeraim] 15/9/2023 08:34

More buying. £2 here we come

[smackeraim] 14/9/2023 16:15

Heading up

[cerrito] 13/9/2023 12:29

Anpario on the Chinese pork market
Quote
China which accounts for just under 13% of Group sales declined by 9% due to the difficulties experienced in the swine market driven by weaker than expected pork consumption, while continuous herd liquidation added more supply resulting in lower pork prices. Furthermore, outbreaks of African swine fever in some provinces have seen short-term disruptions and this uncertainty and months of losses is forcing smaller producers to exit production. Pork prices have improved in recent weeks, but it remains to be seen whether this is sustainable given the weak economy. Our China business is redirecting its efforts towards the dairy and aquaculture sectors, with success, which we believe have better growth opportunities in the medium term and will reduce our dependency on the swine market.

[cerrito] 13/9/2023 08:26

From the ANP interims today. Was not expecting a reference to ASF. Let's see how EAH sees things.Based on previous experience not expecting anything till we get the interims.

Quote
as meat protein producers came under significant margin pressure due to high feed and overhead costs, weak consumption as consumers reacted to the effects of increased cost of living and in some regions an oversupply of poultry, pork and shrimp. These difficulties inevitably led to a reduction in the use of speciality feed additives as producers scaled back production and looked to reduce input costs. Our biggest region, Asia, suffered the most, further affected by disease outbreaks of avian influenza and African swine fever (ASF).
Unquote

[smackeraim] 12/9/2023 14:57

Some buying today

[cerrito] 07/9/2023 16:14

60pcvoter turnout at the AGM healthy for an AIM company and suggests good engagement by the larger shareholders. Resolution No 2 which has some no votes was the remuneration report and I regard as par for the course.

[cerrito] 07/9/2023 08:48

I will not be able to make the AGM and welcome feedback from anyone who come.
I see the market did not like the results of GNS but did not seem all that bad to me. I do not know too much about GNS nor any read across to EAH but see they say that the Chines porcine market in calender H1 23 was challenging.

[cerrito] 03/9/2023 18:26

Anyone thinking of going to the AGM this Thursday?
It is quite easy for me to get there and I want to go but maybe too did organized to make it.

[tole] 20/7/2023 22:02

https://masterinvestor.co.uk/equities/small-cap-catch-up-fans-more-than-hot-air/ECO Animal Health Group (LON:EAH) – Cautious OptimismFive years ago this group's shares were trading at 520p, last night they were just 106p, having been as low as 81p last August.The £74m capitalised company, which develops, registers and markets pharmaceutical products for animals on a worldwide basis, had suffered difficult market conditions and obstacles.However, the recently announced results for the year to end March 2023 which showed an encouraging growth in group revenues and profitability after having suffered quite a hit over the last few years.But now recovery is on the cards and its momentum is returning.I will be speaking to new CEO David Hallas early next week and will report back to you with my views.

[smackeraim] 19/7/2023 08:26

On the move. This should be heading towards £2 imo

[smackeraim] 18/7/2023 16:14

The Dechra Pharmaceuticals buyout set a marker recently in this niche. Good numbers last week. I think a rise is justified if general market kicks on a bit.

[waldron] 13/7/2023 18:19

Shierly lewiss
13 Jul '23 - 18:17 - 1484 of 1484 (Filtered)


0 0 0

[cerrito] 13/7/2023 16:51

A good and professional presentation in the ED webinar and questions well answered.I would recommend people to watch it.
I note strong H2 and strong start for the current FY, their point on geographic diversity and their promising new product pipeline and the fact that they have sidestepped the UK regulatory authorities and are dealing with the USDA, who they say are efficient and speedy. Also good to get steer that reasonable to think that we can get £4m of dividends this FY from the wholly owned sub in China.
That said while I have no intention of selling I am reluctant to buy more.
By my standards I have more than enough invested here. I had a rush of blood to the head 5 years ago to the month and made my first purchase at 540. My current inprice is 170.
I do not feel comfortable that I understand the industry well enough and the competitive landscape. In their note ED do address these issues.
There is the China situation. If anything were to happen with Taiwan all bets are off, especially as all their secret sauce is manufactured there. Perhaps naively I do not see them as having issues domestically with the Chinse government as what EAH does is in line with the interests of the CCP namely keep pork/poultry prices down.
The main issue is that at least from the current product lines, I cannot see where growth is coming from,and as Topvest says the PE is very generous. Indeed as per Singers even in FY26 it will be 51x.

Ps
I am having difficulty in sharing the excitement of EAH in their new products and R&D programme. Trying to work out why I have this blind spot. One reason is that a company looking to bring a new medicine in the human health field will tell us information on how many people in a given country suffer from the disease and some idea of the monetary figures involved. There will often be a comment on what their new proposed drug/vaccine brings to the party compared to existing products. I have not found this with the EAH pipeline. It may well be that I have looked in the wrong place and/or it will be in the Annual Report or Capital Markets Day.

[topvest] 12/7/2023 15:11

Unfortunately, I have sold out again at a 10% or so profit. All a good recovery story, but I cannot get to grips with losing 2/3rd of their net profit in the minority interest line. Costs are in the UK, profits are in China (as they have the manufacturing plant there and the margins in China are much higher)...and they only own 51% of the China business. Consolidated numbers always look much better than they really are - forward P/E is actually 50. A mistake by me as EAH can't really get its hands on the vast majority of profits and the Chinese manufacturing plant doesn't help either. 5 or 10 years ago EPS was very materially higher on much lower sales, so something has fundamentally changed. It puzzles me, hence the sale. Also, if this was such good value then I believe Harwood would definitely be on the share register.

[florence141414] 11/7/2023 11:21

Just caught up on yesterday's results. It makes for an interesting read. I now see ECO as a blue sky play on their vaccines with the development being funded in part by the ongoing sales of Aivlosin and partly from the balance sheet. One of two things will happen in the next few years. Either the vaccines will be successful and the profits/share price will significantly re-rate. Or, we will see a large impairment to the 35m intangible assets as vaccine development comes to nothing. The good thing is that our downside will be protected by the strength of the balance sheet and profitability of Aivlosin if the worst should happen. Likewise, our upside will be maximised in the best case scenario as that same balance sheet strength will protect us from dilution along the way. Mitigated downside with maximum upside potential...? That's the name of the game if you ask me.

[edmonda] 10/7/2023 11:37

... and just a reminder of the Investor Presentation coming up on Wednesday afternoon (12th July @ 2.30pm) - anyone interested can sign up here:

[edmonda] 10/7/2023 11:36

FY23 results ahead of expectations - new research report here:

ECO Animal Health Group reported revenue for the year to 31 March 2023 of £85.3m (+4%YoY) and adjusted EBITDA of £7.2m (+34%YoY), ahead of market expectations. Revenue growth was led by S&SE Asia (+42%YoY) and LatAm (+15%YoY). Gross profitability improved from a 42.7% margin in FY22 to 45.0%, whilst the (adj.) EBITDA margin was also up from 6.6% in FY22 to 8.5%. The year closed with net cash of £21.7m, with cash from operations of £15.9m (FY22: £(0.5)m), in addition to which the Group retained £10m in undrawn £10m RCF.

ECO allocated the equivalent of 9.8% of revenue in R&D spend in FY23 (£8.34m). They reported that two late-stage development projects are to be submitted in FY24; we note the collaboration (from 2022) with Imperial College London, and Moredun Research Institute in Scotland. Our medium-term cashflow outlook indicates ample resources to maintain the level of investment for over a dozen major projects underway or planned, alongside a healthy c£22m cash balance. A well-planned and well-resourced R&D and product development programme – the fruits of which are not factored into near-term estimates – form the basis for additional revenue streams which we estimate could add >£70m by FY28. We expect the group to update on R&D progress and spend before the end of this financial year.

[waldron] 10/7/2023 10:12

next resistance 104p and if broken then perhaps a gap up to 130p

London Stock Exchange - 10:42:11 10/07/2023


103.00 GBX +5.10%

[cerrito] 10/7/2023 09:43

Singers have increased target price from 246p to 268p.