To The Moon

Overview$PASTURE HOLDINGS LTD.(90117.SI)$ Pasture Holdings is a wholesale pharmaceutical distributor based in Singapore. It has a comprehensive product portfolio that supplied more than 1,000 pharmaceutical products, medical supplies and devices. The company is also a supplier of its own proprietary brand of masks, Pasture Masks. In addition, Pasture Holdings is developing new products and services such as Hart-S ODS, a range of oral disintegrating strips (ODS) as well as furlife, a pet health mobile application. History of Pasture Holdings Pasture Holdings’ history can be traced back to 1996 when its esteemed founder, the Executive Chairman and Chief Executive Officer, Mr. Lloyd Soong, founded Pasture Pharma to provide international wholesale procurement and transhipment services in pharmaceutical products. Mr. Soong is a seasoned veteran within the industry, with a rich background in the pharmaceutical sector. It was in the aftermath of the SARS outbreak that Mr. Soong astutely identified an unmet need in the market: the discomfort and breathing challenges posed by existing masks. This realization prompted the birth of "Pasture Masks," a distinctive brand encompassing surgical masks, N95 respirators, and surgical N95 respirators, specifically designed to address these concerns. Expanding its purview, the Group has delved into the realm of wholesale pharmaceutical services, catering to medical supplies and devices. Furthermore, it has ventured into cold-chain management and drop-shipment services, providing a seamless operational framework for pharmaceutical and nutraceutical products. Growth Drivers In October 2022, Pasture has gone into partnership with one of the largest medical and pharmaceutical distribution companies in McKesson Corporation. This is a three-year private label supply agreement with McKesson Medical-Surgical Inc. (“McKesson”) for the supply of medical and surgical supplies and devices under the Pasture brand. The partnership forged with McKesson presents a remarkable opportunity for Pasture Holdings to broaden its repertoire of medical supplies, thereby enhancing its capacity to cater to the needs of its clientele. This development is expected to be a significant revenue driver for Pasture Holdings. One area of contribution could be from Pasture’s business in Japan. In FY2022, Japan emerged as the principal source of revenue, making up an impressive 42.1% of the total. Pasture Holdings could further deepen this market by distributing McKesson products to customers within the Japanese market. Another area of contribution could come from India. Pasture Holdings could potentially tap into their network in India with the Palepu family. Prior to its initial public offering (IPO), Plutus Star Holdings has a 34% ownership in Pasture Holdings. This entity serves as a holding company and is under the proprietorship of Mr. Prashanth Palepu, Mr. Pranay Palepu, and Mr. Srinivasa Gopal Palepu, distinguished members of the Palepu family. It is worth noting that the Palepu family boasts affiliations with Pleasant Exports and Palepu Pharma. This interconnected relationship could prove advantageous for Pasture Holdings, given that Palepu Pharma is one of the key suppliers of the Apollo group which includes over 70 hospitals and 5000 pharmacies in India. With their association with Palepu Pharma, there could be an enticing opportunity for Pasture Holdings to enjoy a breakthrough in the Indian market. CEO Mr. Lloyd Soong: “This IPO comes at an opportune time as it gives us the platform and necessary funding to scale. In late-2022, we significantly boosted our catalogue of medical supplies and devices to 1,200 through a private-label supply agreement with McKesson. We plan to leverage our established global distribution network of over 50 countries to cross-sell these new products and increase our share of wallet. In addition, we are also introducing new business verticals such as our proprietary range of oral disintegrating strips and a mobile application for pet healthcare services. With all these under one roof, we are well-positioned to take our business to a new level.” Financial Highlights Revenue Revenue increased 14.4% in FY2022 mainly due to the surge in demand for masks and other essential medical supplies as well as the relaxation of stringent measures that previously disrupted supply chains. However, it registered a decline in revenue in 1Q2023 due to the decline in mask demand. Net Profit Net profit increased 56.3% in FY2022 primarily due to the higher selling price and volume for our masks (N95 respirators) and medical supplies. However, it registered a net loss in 1Q2023 due to lower revenue and increased operating expenses from the development of the furlife mobile application and higher professional fees in relation to the IPO listing exercise. Term sheet of Pasture Holdings How to subscribe: Steps to subscribe: Portfolio > IPO > Select “SG” > Subscribe