Pharma firm Tipharco lists on Hanoi stock exchange

Tipharco Pharmaceutical JSC made its debut on the Hanoi Stock Exchange (HNX) on Wednesday, with 6.32 million shares traded at the reference price of VND25,000 ($1.06).

Moving from the unlisted public company market UPCoM, Tipharco is now listed on the HNX as DTG.

"The HNX listing creates a platform for a new journey in Tipharco's development strategy, helping our company reach higher standards in terms of information disclosure and corporate governance, while opening a new stage of development," Tipharco CEO Le Thanh Tung said at its HNX debut ceremony.

"With this milestone, Tipharco looks to the future with confidence and optimism. We believe the company has strong growth potential, driven by its inner values, to reach new markets with excellent management,” he added.

Established in 1976, Tipharco, formerly known as Tien Giang Pharmaceutical Company, was among the earliest pharmaceutical companies in southern Vietnam.

The firm was renamed Tipharco Pharmaceutical JSC in February 2006. Tipharco now owns three factories that meet the World Health Organization's (WHO) Good Manufacturing Practices (GMP) standards. Its main products are antibiotics, pain relievers, antipyretics, medicine for cardiovascular and diabetes, traditional medicine, and functional foods. Tipharco debuted on the UPCoM in 2017.

After becoming part of the Bamboo Capital Group (listed on the Ho Chi Minh Stock Exchange as BCG) ecosystem in early 2022, Tipharco's performance has improved dramatically.

Its net revenue reached VND297.1 billion ($12.55 million) in 2022, up 46% year-on-year, while post-tax profit was VND18.2 billion ($768,800), 19 times higher than in 2021 and a record high for the company.

After the HNX listing, Tipharco will pay a dividend ratio of 20% for 2022, including 5% in cash and 15% in shares.

In 2023, the company plans to raise its net revenue by 21% to VND360 billion ($15.21 million); a profit of VND30 billion ($1.27 million), up 65% year-on-year; and a dividend ratio of 10% based on its 2023 results.

At the end of the first quarter of 2023, Tipharco recorded VND88.7 billion ($3.75 million) in revenue and VND7.1 billion ($299,930) in profit, up 25.5% and 167%, respectively.

At the end of 2022, its total assets had reached VND262.9 billion ($11.11 million), of which equity was VND135.5 billion ($5.72 million). Tipharco's charter capital is currently VND63.5 billion ($2.68 million).

According to a resolution following its 2023 annual general meeting of shareholders, the company will issue shares to the public at the ratio 1:3, or more than 22.3 million shares, to existing shareholders at an expected price of VND10,000 ($0.42) per unit.

The additional capital will be utilized to supplement working capital, invest in factory machinery and equipment, research and develop products, and expand the distribution system in the Mekong Delta and southeastern region.

Currently, Tipharco's products are distributed through traditional drugstores, hospitals, and major chain stores of Long Chau, Pharmacity, and An Khang.

Following the HNX listing, Tipharco will continue to pursue its strong growth target in the period of 2023-2027. The company's revenue in this period is expected to grow at 19% per year on average, towards an accumulated figure of VND2.52 trillion ($106.45 million) in the next five years.

The profit target in 2023-2027 is to grow at an average of 40% per year, totaling VND315 billion ($13.31 million) in the next five years.