Final week, the inventory market skilled a powerful shake, inflicting the VNIndex to “evaporate” 75 factors. Many blue-chips, together with banking shares, have been additionally beneath sudden promoting stress and dropped in value.
Nevertheless, there are nonetheless names that reside properly, even repeatedly hitting the ceiling, notably VMD. In lower than a month, from August 6 to August 30, VMD’s value chart ran straight from the worth vary of VND 24,700 to VND 72,1000/share, a rise of 200%. This was additionally the inventory that gained essentially the most on HOSE final week, with a charge of 40%.
In June, VMD additionally recorded a ceiling enhance however solely stopped at 35,700 VND/share.
VMD inventory value chart
The “arm” is efficient in importing vaccines
VMD is the inventory code of Vimedimex Medication and Pharmaceutical Joint Inventory Firm. This enterprise was established in 1984, beginning as a state-owned enterprise, however after equitization, experiencing many occasions of capital enhance resulting in dilution, the State’s possession charge decreased from 51% to 51%. 19.14%. In line with statistics on HOSE, the most important shareholder holding 45.3% of capital in VMD is Vimedimex 2 Pharmaceutical Joint Inventory Firm. Ms. Nguyen Thi Mortgage – Chairman of VMD can be the Chairman of Vimedimex 2.
In line with info from the official web site, on August 4, 2021, Vimedimex has formally turn into a strategic companion of Group 42 and Royal Strategics Companions of the United Arab Emirates. Via the Settlement in precept, Group 42 has approved Vimedimex to be the importer and distributor in Vietnam market and is the premise for requesting, submit an software to the Ministry of Well being for conditional approval of the Covid-19 vaccine Hayat-Vax, made within the UAE. Hayat-Vax is the area’s first indigenous Covid-19 vaccine developed by the Abu Dhabi-based Group 42 Healthcare three way partnership and China’s Sinopharm CNBG and manufactured by the pharmaceutical firm Julphar. Primarily based in Ras Al Khaimah of the UAE has been accepted by the Ministry of Well being of the UAE to be used in emergency circumstances in Could 2021, to fulfill the pressing want for Covid-19 illness prevention and management.
On the identical day, Royal Strategics Companions additionally agreed to promote and signal an import contract with Vimedimex for 10 million doses of Covid-19 Janssen vaccine; 5 million doses of Covid-19 vaccine Pfizer; 10 million doses of Covid 19 vaccine Sputnik V.
To date, Vimedimex is one in every of three pharmaceutical firms in Vietnam (together with Actrazenaca Vietnam and VNVC) which have succeeded in importing Covid-19 vaccine again dwelling. In line with securities firms, that is the largest push to assist VMD’s inventory enhance repeatedly in August.
Profit from the constructive results of the pharmaceutical business
Companies within the pharmaceutical business are anticipated to profit within the context of the Covid-19 pandemic, as a result of elevated well being care wants of the individuals.
In June, Vimedimex Medication and Pharmacy was on the checklist of 36 models licensed by the Ministry of Well being to be eligible to do enterprise within the scope of vaccine import, together with a variety of listed firms akin to: shares on this business have been listed on the inventory trade akin to Ben Tre Pharmaceutical Joint Inventory Firm (DBT-HOSE); Central Pharmaceutical Joint Inventory Firm CPC1 (DP1 – UPCoM); Da Nang Pharmaceutical-Medical Gear Joint Inventory Firm (DDN – UPCoM); Vimedimex Prescription drugs (VMD – HOSE); Central Pharmaceutical Codupha (CDP – UPCoM); Medical Import-Export Ho Chi Minh Metropolis (YTC -UPCoM). Some firms beneath Vietnam Pharmaceutical Company (DVN – UPCoM) akin to Central Pharmaceutical 2, Vietnam Medical Import-Export…
Instantly after this info was launched, buyers reacted positively and “dyeed purple” many shares within the above group within the session 4/6. During which, DBT of Ben Tre Pharmaceutical elevated by 6.76% in comparison with the earlier session. Equally, DP1 of Central Pharmaceutical CPCP additionally hit the ceiling with a rise of 15.19%, DDN of Da Nang Pharmaceutical and Medical Gear Joint Inventory Firm elevated by 14.28%. And VMD additionally elevated by 6.83%.
The truth is, the pharmaceutical business additionally faces difficulties as a result of uncooked supplies primarily rely on imports, whereas provide chain bottlenecks trigger uncooked materials costs to rise, negatively impacting enterprise outcomes. After the primary 2 quarters of the 12 months, typically, the enterprise outcomes of enterprises on this business group should not actually spectacular.
Nevertheless, in the long run, the pharmaceutical business remains to be thought of to have a number of potential for growth and to draw overseas buyers. The proof is that within the buying and selling periods from the top of Could, overseas buyers repeatedly web purchased shares of Traphaco (TRA), Ha Tay Pharmaceutical JSC (DHT), or made M&A with another enterprises.
As a gaggle that may be very “delicate” to information associated to Covid-19, the constructive details about the illness and particularly the import and vaccination state of affairs is predicted to convey good results to the shares. pharmaceutical business.
Tens of trillions in income however “tremendous skinny” revenue
Whether or not it’s the inventory that has gained essentially the most on HOSE final week, or moreover, the worth has elevated by 200% in lower than a month, however the exceptional level is that the liquidity of VMD is sort of modest.
The truth is, Vimedimex is a standard pharmaceutical distributor and at all times stays within the Prime 10 prestigious pharmaceutical distributors in Vietnam. As well as, this enterprise additionally cooperates with hospitals to arrange radiation oncology facilities, develop a satellite tv for pc polyclinic system, and so on.
Final August, Vimedimex formally produced the primary tablets at Vimedimex 2 manufacturing facility, transferring from a pure distribution firm to self-manufacturing to distribute medicine. The enlargement of drug factories is repeatedly deliberate by Vimedimex till the top of 2022.
Within the group of drug distribution enterprises, Vimedimex ranked second when it comes to income, simply behind Zuellig Pharma. In 2020, the corporate recorded income of VND 18,168 billion, whereas the earlier 12 months reached VND 18,260 billion. This determine is equal to the overall income of enormous firms together with DHG Pharma (VND 3,755 billion), Pymepharco (VND 627.5 billion), Imexpharm (1,420 billion VND),…
Nevertheless, Vimedimex’s revenue margin is decrease than many opponents out there. Particularly, Vimedimex’s annual revenue after tax is at VND 30 billion in different companies, as much as a whole lot of billion VND. Final 12 months, the corporate reported a revenue of 37.Three billion dong and the primary half of this 12 months was 19.2 billion dong. That is additionally a typical characteristic typically seen in pharmaceutical enterprises, particularly with the pharmaceutical distribution mannequin.
By 2021, within the second quarter alone, Vimedimex earned VND 3,739 billion, down 3% in comparison with the identical interval final 12 months. Nevertheless, because of price financial savings, the corporate nonetheless reported a web revenue of almost 10 billion dong, up 20% in comparison with the second quarter of 2020. Gathered within the first half of 2021, VMD achieved income of VND 7,604 billion and EAT of greater than VND 19 billion, down 10% and three% respectively over the identical interval in 2020.
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