Employees enter the entrance gate of DHG Pharmaceutical Joint Stock Company (Photo: cafef.vn) Hanoi (VNS/VNA) - Increasing demand for medicine amid the COVID-19 pandemichas helped most pharmaceutical enterprises report positive businessresults in the first quarter of this year.
Pharmaceutical stocks have attracted investors since the outbreak of thedisease due to rising need for medical equipment and drugs, as well asforecasts that the pandemic may be prolonged due to the long timeline ofvaccine manufacturing.
DHG Pharmaceutical Joint Stock Company (DHG), the largest Vietnamesepharmaceutical firm by market capitalisation and revenue, recorded the highestprofit among the listed pharmaceutical firms in Q1 at 177 billion VND (5million USD).
This represented an increase of 31 percent year-on-year, fulfilling 27 percentof the yearly target.
DHG was followed by Pymepharco Joint Stock Company (PME) and ImexpharmCorporation (IMP) with 75 billion VND and 41 billion VND, up 8 percent and 13percent against last year, respectively.
Imexpharm expects its business to grow strongly thanks to the ethical orprescription drugs (ETC) channel. Revenue in 2020 is expected to reach 1.75trillion VND, up 23.3 percent from the same period last year.
Pre-tax profit is estimated to reach 260 billion VND, up 17 percent. Therefore,the company has completed 17 percent of this year’s revenue plan and 20 percentof the profit plan.
Shares of IMP decreased by 14.5 percent from an all-time high of 62,000 VND pershare, recorded on February 24, to 52,900 VND per share on May 25.
In Q1, Agimexpharm Pharmaceutical JSC (AGP)'s revenue increased slightly by 1.2percent year-on-year to 131 billion VND.
However, profit dropped by nearly 12 percent to 8.2 billion VND.
The pharmaceutical industry is also expected to grow strongly thanks to theageing Vietnamese population and the increasing demand for health careservices, especially in the context of the COVID-19 outbreak.
However, the pandemic may bring advantages to the industry in the short term,but if it is prolonged, it will harm supplies of imported raw materials fromChina. This will force pharmaceutical enterprises to switch to importing fromother regions at higher prices.
Binhdinh Pharmaceutical and Medical Equipment JSC (DBD) said more than 80 percentof the main raw materials for the company's products were imported from China.
But due to the disease, many factories in China had to halt operation, it said.
Domesco Medical Import-Export JSC (Domesco) also said it was facing aproduction halt and interruptions in some products that rely heavily onimported raw materials from China.
Although recording positive earning results, many pharmaceutical stocks couldnot maintain the uptrend and have been retreating recently.
After reaching early 100,000 VND per share at the end of January, shares ofPharmaceutical Joint Stock Company (DHG) quickly decreased to hover at around 90,000VND.
Compared to early this year, DHG has recorded a decrease of about 6 percent.
Ha Tay Pharmaceutical JSC (DHT) surprised investors as it surged to nearly 60,000VND per share in early February while in previous months, its shares hovered ata price of less than 50,000 VND per share.
However, DHT has dropped deeper since then, closing on May 25 at 45,000 VND pershare.
According to Nguyen Hong Khanh at Vietnam International Securities Co (VIS),pharmaceutical shares are often traded thinly as most stay in the hands of afew insiders, which makes it easier to push prices.
“As pharmaceuticalstocks have a low free transfer rate, price movements in the short term will beunpredictable, especially if the demand increases sharply,” Khanh said./.
Pharmaceutical stocks have attracted investors since the outbreak of thedisease due to rising need for medical equipment and drugs, as well asforecasts that the pandemic may be prolonged due to the long timeline ofvaccine manufacturing.
DHG Pharmaceutical Joint Stock Company (DHG), the largest Vietnamesepharmaceutical firm by market capitalisation and revenue, recorded the highestprofit among the listed pharmaceutical firms in Q1 at 177 billion VND (5million USD).
This represented an increase of 31 percent year-on-year, fulfilling 27 percentof the yearly target.
DHG was followed by Pymepharco Joint Stock Company (PME) and ImexpharmCorporation (IMP) with 75 billion VND and 41 billion VND, up 8 percent and 13percent against last year, respectively.
Imexpharm expects its business to grow strongly thanks to the ethical orprescription drugs (ETC) channel. Revenue in 2020 is expected to reach 1.75trillion VND, up 23.3 percent from the same period last year.
Pre-tax profit is estimated to reach 260 billion VND, up 17 percent. Therefore,the company has completed 17 percent of this year’s revenue plan and 20 percentof the profit plan.
Shares of IMP decreased by 14.5 percent from an all-time high of 62,000 VND pershare, recorded on February 24, to 52,900 VND per share on May 25.
In Q1, Agimexpharm Pharmaceutical JSC (AGP)'s revenue increased slightly by 1.2percent year-on-year to 131 billion VND.
However, profit dropped by nearly 12 percent to 8.2 billion VND.
The pharmaceutical industry is also expected to grow strongly thanks to theageing Vietnamese population and the increasing demand for health careservices, especially in the context of the COVID-19 outbreak.
However, the pandemic may bring advantages to the industry in the short term,but if it is prolonged, it will harm supplies of imported raw materials fromChina. This will force pharmaceutical enterprises to switch to importing fromother regions at higher prices.
Binhdinh Pharmaceutical and Medical Equipment JSC (DBD) said more than 80 percentof the main raw materials for the company's products were imported from China.
But due to the disease, many factories in China had to halt operation, it said.
Domesco Medical Import-Export JSC (Domesco) also said it was facing aproduction halt and interruptions in some products that rely heavily onimported raw materials from China.
Although recording positive earning results, many pharmaceutical stocks couldnot maintain the uptrend and have been retreating recently.
After reaching early 100,000 VND per share at the end of January, shares ofPharmaceutical Joint Stock Company (DHG) quickly decreased to hover at around 90,000VND.
Compared to early this year, DHG has recorded a decrease of about 6 percent.
Ha Tay Pharmaceutical JSC (DHT) surprised investors as it surged to nearly 60,000VND per share in early February while in previous months, its shares hovered ata price of less than 50,000 VND per share.
However, DHT has dropped deeper since then, closing on May 25 at 45,000 VND pershare.
According to Nguyen Hong Khanh at Vietnam International Securities Co (VIS),pharmaceutical shares are often traded thinly as most stay in the hands of afew insiders, which makes it easier to push prices.
“As pharmaceuticalstocks have a low free transfer rate, price movements in the short term will beunpredictable, especially if the demand increases sharply,” Khanh said./.
VNA
