Vietnam's leading pharma firms post bumper profits in 2022

Hau Giang Pharmaceutical JSC, OPC Pharmaceutical JSC, and Imexpharm Corporation reported huge profits last year thanks to high demand for drugs, according to their financial statements.

Imexpharm Corporation (IMP) achieved net revenue of VND1,643 billion ($70 million) and after-tax profit of nearly VND234 billion ($9.97 million), up 30% and 23% year-on-year, respectively.

As of December 31, 2022, IMP's total assets stood at more than VND2,287 billion ($97.48 million), down VND7 billion or 0.7% compared to the beginning of the year, of which liabilities made up VND382 billion ($16.28 million).

On the Ho Chi Minh Stock Exchange (HoSE), the IMP share price hit VND57,200 ($2.44) per unit at Friday's closing session.

Meanwhile, OPC Pharmaceutical JSC (OPC) reported net revenue of VND1,172 billion ($49.96 million) and after-tax profit of VND142 billion ($6 million), up 4% and up 16%, respectively.

As of December 31, 2022, OPC's total assets stood at VND1,246 billion ($53.11 million), an increase of VND8 billion or 0.6% compared to the beginning of the year. Short-term assets reached VND911 billion ($38.83 million), down 2%, and inventories hit VND410 billion ($17.48 million), down 21% compared to the beginning of the year.

On the HoSE, OPC shares reached VND26,400 ($1.12) at the close on Friday.

DHG Pharma (HoSE: DHG) recorded an after-tax profit of VND988 billion ($42.13 million) last year, a 27% rise year-on-year, while net revenue reached VND4,674 billion ($199.32 million), up 17%.

With these results, DHG Pharma surpassed its year revenue and post-tax profit targets by 10.8% and 45%, respectively.

In the fourth quarter of 2022, the company’s net revenue reached VND1,330 billion ($56.72 million), up 22% year-on-year. Its after-tax profit in the quarter was VND236 billion ($10.06 million), up 39%.

The company attributed its high Q4 profits to increased demand for drugs, especially antibiotics and products to prevent diseases and strengthen the immune system. Besides, it actively increased stocks of raw materials and finished products to meet market demand, closely managed its distribution system, and set up good customer connections.

As of December 31, 2022, its total assets stood at VND5,168 billion ($220.38 million), an increase of VND554 billion ($23.62 million) compared to the beginning of the year.

Closing the Friday session, DHG was being traded for VND93,100 ($3.97).

According to a survey conducted by market research firm Vietnam Report in October-November 2022, nearly 90% of pharmaceutical manufacturing, distribution and trading enterprises reported increased revenue, and nearly 80% of enterprises recorded profit growth in the first nine months of 2022 year-on-year. The majority of experts said that the Covid-19 pandemic had created a faster shift in the industry's revenue structure in multiple ways.

In addition, competition between domestic and foreign enterprises is nothing new for the pharmaceutical industry, and is forecast by 78.6% of enterprises surveyed by Vietnam Report to continue this year.

IMP had market capitalization of VND3,813 billion ($162.57 million) as of the Monday morning trading session, while the figures for OPC and DHG were VND1,690 billion ($72.05 million) and VND12,172 billion ($518.95 million), respectively.