Pharma is very potential stock base on 2 important reasons:- 1.Production of human insulin contracts at its Puchong plant is scaling up. This moves the company away from being just a low-margin logistical middleman to a high-margin manufacturer. 2.Analysts estimate that Pharmaniaga could pay out 50% to 70% of its net profit as dividends. This is a major catalyst that will draw back large institutional funds.

Pharmaniaga's financials are still messy with that massive PN17 hit, and until their balance sheet clears up, the fundamentals remain very shaky for long-term holding. 18-19 cents is just a psychological resistance; until they actually show sustainable profit growth, better to wait on the sidelines.