Kalbe Establishes Trading Hub in China to Secure Raw Material Supplies

By Editorial Team 19/08/2022
medical supplies
Summary

Skyrocketing commodity prices and disrupted supply chains due to the Russo-Ukrainian war significantly affected PT Kalbe Farma Tbk's (KLBF) operations. Research by Mirae Asset Sekuritas revealed that Kalbe is currently building a trading center in China to secure future medicinal raw materials supplies. Kalbe Farma imports raw materials from India, Europe, and the United States all this time.

Kalbe is finalizing the licensing process and partnership agreements with raw material manufacturers in China. So far, KLBF has extended its inventory stock to around five months. "We believe that the company's strategy to secure raw materials will be able to maintain Kalbe's market share. However, rising commodity prices, global supply chain problems, and changes in product mix have dwindled Kalbe's gross profit margin [GPM] year-on-year," analyst at Mirae Asset Sekuritas Christine Natasya explained in research released Thursday.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

Sign up
Log in
What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.