Company Quarterly Earnings Update – IMP VN – 2019 Q3

Summary of the 9M/2019 results of Imexpharm Pharma. JSC (IMP VN) 

9M/2019 results: highlights
  • IMP’s revenue increased by 9.4% y/y. The own products group (+11.3% y/y) made up the bulk (91%) of the company’s overall revenue. Within this group, the two distribution channels hospitals and pharmacies saw different developments. Hospital revenue increased strongly by +68% y/y thanks to higher capacities and a new supportive regulation. Meanwhile, revenue at pharmacies declined by 2% y/y because of the stringent enforcement of Good Pharmacy Practices (GPP).
  • The company’s net margin was nearly unchanged and net profit amounted to 110bn, +11.2% y/y.
  • IMP’s financial position remained solid with only a modest leverage (D/E of 0.06x).
Outlook
  • As for all 2019, we retain our latest estimate that called for a net profit of VND 160bn (9M/2019 achieved 69% of this amount). We expect Q4 hospital sales to continue to grow strongly thanks to new successful biddings to hospitals for the company’s products manufactured in the IMP2 and IMP3 factories.
  • Forecasts from 2020 till 2023 are also almost unchanged from our last quarterly review. We believe  that IMP can grow its revenue by a CAGR of 13.3%, driven by an increase of 7.0% p.a. for pharmacy sales and by an increase of 27.0% p.a. for hospital sales. During this period, we expect the net profit CAGR to increase by 15.4%, slightly higher than revenue, mainly thanks to lower allocations to the   provision fund for technology applications as new factories come into operation.
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