📈 Soft Quarter, Solid Core 💰 HHL reported an EPS of LKR 0.31 for 1Q FY27, stemming from a PATMI of LKR 937mn (-21.4% YoY). Group topline for 1Q FY27 remained flat at LKR 28.8bn (+0.9% YoY) due to the impact stemming from NMRA price controls on Life Sciences. Group EBIT margins fell to 6.4% (previous: 7.4%) reflecting higher fuel and freight costs coupled with LKR depreciation. 💊 Delay in anticipated NMRA price revisions will continue to weigh down on Lifesciences in the near term while own-brand NCD drugs, surgical and diagnostics and exports improve the earnings mix. 🏥Steady growth expected from Hospitals. 🧴Gradual price increases will take place across the Consumer product portfolio amidst inflation weighing on volumes in the near term. 📚Near-term impact from Twiga on margins will be modest owing to the finance and other costs associated with the acquisition while topline will see an immediate boost. 📈 Valuation & Recommendation: • HHL – BUY | TP: LKR 48.00 (+52.8%) ⚠️ Risks: Global commodity price fluctuations, Regulatory changes in pharma pricing, Forex exposure, Demand slowdown impacting consumer volumes