Stock Digest - Nova Wellness Group Bhd - Vertically Integrated Nutraceutical Company

Established in 1989, Nova Wellness Group Berhad (NOVA) is now involved in the development and production of nutraceutical products under its house brand and for its OEM customers. Rising demand for nutraceutical products, coupled with NOVA’s ongoing expansion of distributor network and production capacity are expected to drive the house brand segment’s growth. We initiate coverage on NOVA with a BUY call and fair value of RM1.08, based on 14.0 P/E pegged to its forward FY23f EPS of 7.7 sen.