Labeled as defensive, pharmaceutical shares are sometimes neglected by buyers when the market is powerful, however are most popular in occasions of unfavorable market situations. Nonetheless, this development is altering because the COVID-19 pandemic has created extra tales across the pharmaceutical business, particularly associated to cube.
In the beginning of June, the Ministry of Well being introduced a listing of 36 items licensed to certify that they’re eligible for buying and selling within the scope of importing cinnabar, and offering providers for storing cube. Within the record, there are some notable enterprises on the inventory alternate akin to Ben Tre Pharmaceutical (code DBT), Central Pharmaceutical CPC1 (code DP1), Vimedimex Binh Duong Pharmaceutical (code VMD), Pharmaceutical-Medical Gear Da Nang Hospital (DDN code), Codupha Central Pharmaceutical (code CDP) and various firms beneath Vietnam Pharmaceutical Company (DVN code),…
Reacting to this information, many of the above shares broke out strongly proper after that with consecutive classes of ceiling positive factors. Some shares akin to DBT, DP1 have considerably cooled down whereas VMD, DDN, CDP, and DVN have all recovered.
Particularly, VMD constantly elevated its shock after the information of signing a contract with a overseas companion to import 10 million doses of COVID-19 vaccine Janssen (Johnson & Johnson’s Janssen); 5 million doses of Pfizer vaccine and 10 million doses of COVID-19 vaccine Sputnik V. The inventory is now up 155% within the final 14 buying and selling classes.
Not associated to cube, nevertheless, Traphaco’s TRA inventory immediately hit the ceiling for two consecutive classes after a very long time of silence. In response to some assessments, the information that strategic companion Daewoong (Korea) has accomplished the section 2 trial of a drug to deal with COVID-19 has introduced a constructive impact to this inventory.
Correlation of some pharmaceutical shares and VN-Index from the start of June to now
Alternatively, acquainted names akin to DHG Pharma (DHG code), Domesco (DMC code), Pymepharco (PME code), OPC Pharmaceutical (OPC code), Imexpharm (IMP code) have nearly leveled off because of lack of availability. particular help data. For the reason that starting of June till now, these shares have all recorded positive factors that aren’t too superior to the VN-Index, even weaker than the market.
Along with the difficulty of cube or medication to deal with COVID, the story of divestment and acquisitions by overseas buyers is predicted to carry a brand new wind to pharmaceutical shares. The actual fact exhibits that the actions of this group of shares over the previous time are not so depending on enterprise outcomes as earlier than.
CONTRACT PROFITS ONLY
The revenue image of the pharmaceutical business additionally had a sure divergence when main enterprises akin to DHG Pharma, Pymepharco, Traphaco, and Vietnam Prescription drugs grew effectively within the first 6 months due to robust competitiveness.
DHG Pharma (code DHG) continued to steer the business when it comes to revenue with 405 billion dong after the primary 6 months, up 12% over the identical interval. DHG’s internet income additionally elevated by 17% in comparison with the primary half of final 12 months, reaching 1,965 billion dong. With the outcomes achieved, the corporate has accomplished 49% of the income goal and 55% of the total 12 months revenue goal.
Pymepharco (PME code) additionally recorded progress in each income and revenue. After 6 months, the corporate achieved 1,076 billion dong in income and 165 billion dong in revenue after tax, up 29% and 19% respectively in comparison with the primary half of final 12 months. The corporate mentioned that internet gross sales within the second quarter of 2021 elevated by 46% due to the addition of product manufacturers.
The identical, comparable, Traphaco (code TRA) mentioned that the corporate’s gross sales coverage was supported by clients, so the income within the second quarter of 2021 elevated by 22% and selling the sale of conventional merchandise of the corporate, so it had revenue margin. Within the first 6 months, Traphaco recorded VND 1,028 billion in internet income and VND 124 billion in internet revenue, up 21% and 38% respectively over the identical interval.
In the meantime, the 6-month income of Prescription drugs of Vietnam (DVN code) decreased by 9% over the identical interval to 2,290 billion dong. Nonetheless, due to the discount in bills, revenue after tax nonetheless elevated by 20.4% in comparison with the primary half of final 12 months, to 129 billion dong. With this outcome, the corporate has solely fulfilled 42% of the income plan however has accomplished almost 90% of the revenue goal for the entire 12 months.
Alternatively, smaller companies face difficulties because of social distancing affecting medical examination and therapy actions and OTC drug consumption.
OPC Prescription drugs (OPC code) The rise in prices because of the impression of the difficult state of affairs of the COVID-19 epidemic brought about the revenue within the second quarter of 2021 to lower by 20% over the identical interval to 17 billion dong. Cumulative revenue in 6 months additionally decreased barely by 0.2% to 53.7 billion dong though income nonetheless elevated by almost 3% to 473.Four billion dong.
Domesco (code DMC) recorded a lower in each income and revenue within the second quarter and first six months of 2021 as hospitals and medical services prioritized COVID-19 prevention whereas clinics and hospitals Medicines because of social distancing points in lots of provinces are additionally very restricted, resulting in a big lower in demand. DMC’s 6-month internet revenue dropped by 39% to VND66 billion and simply fulfilled 30% of its full-year goal.
The primary 6 months of the 12 months, income Ha Tay Pharmaceutical (code DHT) reached greater than 838 billion dong, down 8.4% over the identical interval. After deducting bills, revenue after tax decreased by greater than 20% in comparison with the primary half of final 12 months to just about 42 billion dong. With this outcome, the corporate fulfilled 49% of income goal and 47% of revenue goal for the entire 12 months.
Whereas, Ben Tre Pharmaceutical (DBT code) additionally recorded a pointy decline in 6-month enterprise outcomes with income of 304 billion dong and revenue after tax of Four billion dong, down 18% and 47% respectively in comparison with the primary half of final 12 months. Thus, the corporate has solely fulfilled 33% of the income goal and 21% of the revenue goal after the primary 6 months of the 12 months.