chevrons

Back to Previous Page

Company Quarterly Earnings Update – IMP VN – 2019 Q2

Summary of the H1/2019 results of Imexpharm Pharma. JSC (IMP VN) 

H1/2019 results: highlights
  • IMP’s revenue increased by 8.8% y/y. The own product group (+11.0% y/y) made up the bulk (90.8%) of the company’s overall revenue. Within this group, the two distribution channels hospitals and pharmacies saw quite different developments: Whereas hospital revenue increased strongly by +52% y/y, revenue at pharmacies inched up by 1%y/y only. We expect the robust growth of the hospital channel to continue. Pharmacies should do better going forward as well; the disappointing result in H1/2019 happened because of the stringent enforcement of Good Pharmacy Practices (GPP), which is likely to be a one-off effect.
  • The net margin was nearly unchanged and net profit was 68bn, +7.8% y/y.
  • IMP’s financial position remained solid with modest leverage (D/E of 0.05x).
  • Circular 15/2019 from the Ministry of Health (MoH) was released in Jul 2019. Together with Pharmaceutical Law of 2016, it governs the drug procurement for the use in the social health insurance. These regulations are favorable for IMP.
  • IMP2, which has got the EU-GMP certificate in Jan 2019, has started to operate commercially. IMP4 is on track to get the same certificate by the end of 2019.
Outlook
  • Our 2019 earnings outlook now trails our last estimate by 6%, due to H1 lower than expected pharmacy sales. The revised net profit estimate is VND160 bn, +15.6% y/y.
  • From 2020 till 2023, we think that IMP can grow its revenue by a  CAGR of 14.4%, driven by an increase of 7.0% p.a. for pharmacy sales and by an increase of 25.3% p.a. for hospital sales. During this period, we expect the net profit CAGR to grow by 16.3%, slightly higher than revenue growth.
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

Related News & Insights
Find out more navigation_button
news

Summary of Q1 2025 results and outlook of IDICO Corporation JSC (IDC VN) Despite higher energy revenue and stable toll fee revenue, total revenue declined 3% y/y to VND1,793 bn, mainly due to lower contributions from the industrial park (IP) and real estate segments. Energy and toll fee accounted for 51.7% of total revenue, while […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Binh Minh Plastic JSC (BMP VN) BMP reported net revenue of VND1,383bn in Q1/2025, up 37.9% y/y, driven primarily by a 39.6% y/y increase in sales volume. This strong growth was largely due to a shift in the timing of promotional campaigns (held in Q1 this year […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Dat Xanh Group JSC (DXG VN) Vietnam real estate market recorded moderate new supply, as many projects approved in late 2024 and early this year needed more time to complete launch sales procedures. Hanoi continued to lead new supply, while HCMC remained constrained by legal hurdles. Most […]

Read Newsarrow
Find out more navigation_button