IMP – Low growth prospects make valuation not really attractive
- In Q3-2022, IMP recorded net revenue and PBT of VND 418 billion (+63% YoY) and VND 72 billion (+89% YoY), respectively. Accumulated 9M2022, net revenue and PBT reached VND 1,087 billion (+25% YoY) and VND 197 billion (+27% YoY), completing 75% and 72% of the annual plan. Net revenue and PBT accumulated 9M2022 completed 70% and 71% of our forecast, respectively.
- IMP 4 factory will help IMP become the first domestic company to participate in competitive bidding with foreign manufacturing companies in bidding packages of Non - Betalactam antibiotics tiers 1&2. However, we forecast that revenue contribution from IMP 4 will only reach VND 83 billion, equivalent to 5% of the share of the ETC channel in 2023 due to the scale of Non-Betalactam antibiotics that IMP 4 is expected to produce is relatively small.
- Net revenue and NPAT in 2022F are VND 1,546 billion (+22% YoY) and VND 222 billion (+17.6% YoY), respectively. For 2023F, net revenue and NPAT will reach VND 1,675 billion (+8.3% YoY) and VND 240 billion (+7.8% YoY), respectively. The stock is being traded at a P/E 2023F valuation 13% lower than the 5Y average of 22.3x at 19.8x but still quite high considering the 5Y CAGR of NPAT at 7%.
- We recommend to ACCUMULATE IMP with a target price of VND 63,000 VND per share.
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.
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