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Hau Giang Pharmaceutical (DHG VN) – Q3 2025 – Strong Sales and Premium Mix Drive 25% Profit Rise
Summary of 9M 2025 results and outlook of Hau Giang Pharmaceutical JSC (DHG VN)
- Net revenue grew 7.0% to VND3,524bn. In pharmacy channel (84.9% of total sales), early in the year, new tax and invoicing regulations posed challenges for traditional pharmacies, DHG’s main clients. It swiftly implemented support programs—including e-invoicing software assistance, promotional initiatives, and anti-counterfeit campaigns—helping those clients adapt and reinforcing loyalty. As a result, pharmacy channel sales rose 8.5% y/y with accelerating growth each quarter. Of which, traditional stores went up 7.8% y/y, while modern chains surged 19.1% y/y (~7.2% of total) thanks to DHG’s trusted brands and market leadership. Hospital channel sales rose ~10.0% y/y from larger nationwide tenders and higher competitiveness of DHG’s EU-/Japan-GMP-certified products. Recent Ministry of Health’s regulations expanding the national health insurance (NHI) reimbursement list to all hospital levels have further enhanced patient access to medicines. In parallel, broader NHI coverage, simplified administrative processes, have boosted public healthcare spending and pharmaceutical demand across the hospital system.
- Net profit surged 24.9% y/y to VND713bn, reflecting stronger operational efficiency and a more profitable product mix. Specifically, gross margin widened to 48.6% (+3.6ppt y/y), led by improved profit margin of self-produced drugs from growing contribution of higher-value EU-GMP products. Meanwhile, SG&A costs remained stable at 26.9% of sales.
- In Q4/2025: Pharmacy sales are expected to rise as traditional pharmacies return to the growth trajectory following adaptation to new regulations. With rising health awareness, local people have become more proactive about preventive health and self-medication, driving steady demand in this channel. For hospital channel, the new EU-GMP-certified beta-lactam facility (Sep 2025) will further strengthen DHG’s competitiveness in drug tenders. Q4’s net sales are forecast to rise 7.2% y/y, with net profit up 25.5% y/y, bringing full-year profit to VND974bn (+25.0% y/y).
- Looking ahead to 2026: Following a period of regulatory tightening aimed at enhancing transparency and anti-counterfeit medicines, the pharmacy channel is expected to stabilize, creating a more favorable environment for established brands such as DHG. Long-term demand for pharmaceuticals will continue to be driven by rapid urbanization, industrialization, an aging population, and the rising incidence of lifestyle-related diseases, supported by government initiatives promoting local drug production, and improving patient access to healthcare. Leveraging its new EU-/Japan-GMP-certified facilities, DHG is well positioned to upgrade its product portfolio and capture the growing demand for sustained growth.
Interested in DHG? Click here to read more of our previous analysis on DHG’s quarterly earnings.
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