Back to Previous Page
Company Quarterly Earnings Update – IMP VN – 2019 Q1
Summary of the Q1/2019 results of Imexpharm Pharma. JSC (IMP VN)
Q1/2019 results: highlights
- Revenue was VND 273 bn, +7.9% yoy. Revenue from own products, and outsourced products accounted for 91.0% and for 8.5% of that amount, respectively. Within the own product segment, sales through hospitals registered strong growth of 18.2%, while sales through pharmacies were up by 8.2%.
- The company’s gross margin rose However, IMP was affected by higher operating expenses, mostly for marketing activities, partly offsetting the improved gross margin. The bottom line recorded VND 36 bn, +10.5% yoy.
- IMP’s financial position remained solid with negligible borrowing.
- The AGM approved a dividend of VND2,000/share for the 2018FY.
Outlook
- FitchSolutions (previously BMI) forecasts an 11.0% CAGR from now till 2027 for pharmaceutical sales in local currency. The segment of prescribed medicine is estimated to grow faster and to contribute 77% of the whole market by 2027, up from 75% in 2018, mainly thanks to increased insurance coverage. It seems that the market currently prefers imported medicine (56% of total medicine) for quality reason. However, new regulations are supporting domestic firms, which can produce high-quality drugs that are compliant with international
- We estimate IMP to grow faster than the industry average, with a 17.4% CAGR for own product revenue till 2023, thanks to added capacity with GMP-EU standards. The extra capacity will allow IMP to sell more products to public hospitals. Please note that, in 2018, IMP accounted for only ~2% of all domestic producers’ revenue.
- IMP’s bottom line is set to grow at a similar pace: 17.0% CAGR till 2023.
Recommendation
Company ratings and target prices are accessible for clients only.
If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.
Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.
Featured image credit: vccinews.com