Summary of the 2018 results of Imexpharm Pharma. JSC (IMP VN)
2018 results: highlights
- Net revenue was VND 1,219 bn (+4.6% yoy). Own product sales made up 87% of net revenue, increasing by 5.9%. Sales through pharmacies continued to drive growth, while sales through hospitals disappointed as they were almost unchanged from last year. More delay to pass amendments to auctioning regulations prevented a better result.
- Net profit rose more than revenue, reaching 138bn (+18.2% yoy) as the operating margin improved considerably: IMP restructured its medicine portfolio, focusing on more profitable segments.
- IMP’s financial position remained solid with no debts. The management proposed a dividend of VND2,000/share, which is subject to the upcoming AGM’s approval.
- IMP’s new factory in Vinh Loc (IMP2) got Portugal’s GMP-EU in Jan 2019. IMP is now registering medicines with the Ministry of Health (MoH) to produce in Vietnam. It can start bidding to hospitals after registration is completed.
- Factory IMP4 in Binh Duong is on track for GMP-EU by the end of 2019.
- For the period from 2019 to 2023, we project a revenue CAGR of 15.8% for IMP. The ETC sales CAGR is likely to be much higher at 40.2% while the OTC sales CAGR should amount to only 7.0%. During the same period, we estimate an EPS CAGR of 16.4%. Profitability should improve as ETC sales are likely to increasingly consist of value-added medicine products, which have higher margins. Compared to our latest estimate, the company’s ambitious growth target is postponed by one year due to continued delay of amendments to auctioning regulations.
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