IMP - Benefiting from Many Supporting Policies
​We have decided to change our recommendation from NEUTRAL to BUY for IMP. Considering the growth prospects of IMP, we believe that a valuation of VND80,000/share, equivalent to P/E of 21x is appropriate for 2018. Compared to the closing price of VND63,000/share on September 15, the target price, coupled with a stable dividend of VND1,800/share, yields a total expected return of 30%.
It is not a bargain-hunting opportunity as its stock is trading at P/E of 23x for 2017. IMP has a growth stock story, in which our analyst believes that in the long run, the company will have high growth potential, thanks to the upcoming supporting policies. The company also possesses a durable competitive advantage, which is a modern EU-GMP factory system that only a few other domestic manufacturers can barely compete with. This facility also makes IMP an ideal target for foreign pharmaceutical counterparts. This could potentially lead to a strategic partnership and/or an FOL story, becoming a catalyst for the stock price as in the case of DMC and DHG.
Imexpharm Corporation is a Vietnam-based company engaged in the pharmaceutical industry. The Company manufactures, imports, exports and trades pharmaceutical products, antiseptics, traditional medicine, medical equipment and supplies, cosmetics, supplemental food and drinks. It is also involved in the provision of packaging services and warehousing services for pharmaceutical storage purposes. In addition, the Company is involved in medicinal herb cultivation.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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