EUR 1.14 For Business Accounts Only

IMP - Growth engines from the EU - GMP factories

IMP is the third largest pharmaceutical company in terms of market capitalization and revenue, with business concept that focuses on manufacturing high quality products. Because sales from ETC (Ethical channel) accounted for a big proportion of total revenue before 2013, the business in recent years was significantly affected by Circular No. 01/2012/TTLT BYT-BTC guiding the drugs bidding procurement in the medical facilities. However, as its 2 plants are about to qualified for EU-GMP standard at the end of this year, IMP expects to see ETC sales bounce back strongly, starting in 2017.

Unlike most companies in the industry, IMP has been constantly invested in high technology factories. By 2019, IMP should have 4 factories complying with EU-GMP standard and a relatively diversified product pipelines. Improved distribution system and higher demand for high quality drugs are another plus. Therefore, we are optimistic about the long term prospects of the company.

Using the discounted cash flow method, we determine the fair price of IMP to be VND50,400/share, 7.5% lower than the closing price on 15 August 2016. Investors may consider buying when stock price is adjusted to a more attractive level to reflect their unimpressive business results in the first 6 months.