Leading pharma firm Imexpharm stock consecutively sets record price highs

As the benchmark VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), is approaching 1,300 points, the ticker of Vietnam’s leading pharma firm Imexpharm IMP has continuously surpassed its peaks.

Since the end of April, IMP suddenly increased from VND60,000 to VND82,000 ($3.23) per share, up 37% in more than two months, surpassing the level of VND67,000 set when the VN-Index hit its peak at about 1,500 points.

The surge came as Imexpharm collected shareholder opinions on a share bonus plan at a rate of 100%. The company also intends to issue more than 77 million shares from equity to increase its charter capital to VND1.54 trillion ($60.6 million).

The board of directors said that the capital hike plan is to support Imexpharm's growth and expansion plan in the next 3-5 years. After the issuance, the company is expected to become Vietnam's listed pharmaceutical company with largest charter capital, consolidating its leading position in the market.

Imexpharm has revealed dividends in shares at the rate of 10% and in cash at 10% of par value, with July 12 being the last day to finalize its list of shareholders. Cash dividends will be paid on July 23.

Imexpharm is the first pharmaceutical company under Vietnam Pharmaceutical Corporation (Vinapharm) to equitize and list shares on the HCMC bourse. The IMP’s price increased steadily but its liquidity was poor, with only a few tens of thousands of units changing hands per session.

Its shareholder structure is quite concentrated with South Korea’s SK Vina III Pte Ltd holding a 47.67% stake, Vinapharm 22.03%, Sunrise Kim Investment Joint Stock Company 9.75%, and KBA Investment Joint Stock Company 7.37%. Among them, Sunrise Kim and KBA Investment are linked to SK Vina III.

SK Vina III is a subsidiary of South Korean conglomerate SK Group. SK Group became a strategic shareholder of Imexpharm and joined its board of directors in 2020. It now owns 64.79% of the Vietnamese firm, which has been approved by the 2024 AGM to increase to over 65%.

Imexpharm's revenue rose from VND1,301 billion to VND2,114 billion ($83.2 million) in 2021-2023, and after-tax profit from VND189 billion to VND300 billion ($11.8 million).

In Q1/2024, the company earned VND491 billion ($19.32 million) in revenue, a year-on-year increase of 2.5%. Its after-tax profit dropped 20.4% to VND61.9 billion ($2.34 million) due to fluctuations in input raw material prices, fiercer competition in the market, and increased depreciation and operating costs from the official operation of the IMP4 factory (Q3/2023).

At the end of Q1/2024, Imexpharm had VND502 billion ($19.75 million) in undistributed after-tax profits, VND435 billion in development investment funds, and VND507 billion in equity surplus, while owner's equity was VND700 billion. It had no long-term debt but short-term debt of VND118 billion.