Imexpharm shares surge after financial statement announcement

The trading session on October 19 was full of pressure with the opening of the VN-Index falling points and a record low liquidity, even more than half of the stocks in the VN30 basket were in red such as VIC, VCB, BCM, VNM,...

In the afternoon session, the increased bottom-fishing demand pushed the VN-Index up, but the greater selling pressure in the market pushed the index down at the end of the afternoon session. At the end of the trading session on October 19, the VN-Index decreased by 15.55 points, equivalent to 1.41% to 1,087 points. Thus, the market officially "broke" the 1,100-point mark to the lowest level in more than 4 months, since the beginning of June 2023.

Meanwhile, IMP code of Imexpharm Pharmaceutical Joint Stock Company went against the market trend, increasing slightly to VND 62,500/share with a matched volume of up to 31,500 units after announcing its financial report for the third quarter of 2023 with impressive growth momentum.

Finance - Banking - Imexpharm's shares turn the tide after announcing financial statements — IMP stock price movements (Source: FireAnt).

Regarding the financial picture, at the end of the third quarter of 2023, Imexpharm's net revenue increased by 12% over the same period, reaching VND 466.9 billion. Because the increase in cost of goods sold was slower than the increase in revenue, gross profit increased by 5% to VND 181.1 billion.

After deducting expenses, Imexpharm recorded a 25% increase in after-tax profit over the same period to VND69.7 billion.

Imexpharm said the growth results came from the company's market expansion activities in the third quarter, along with restructuring the product portfolio and effective cost management to control cost increases.

Along with the positive business results of the previous 2 quarters, in the first 9 months of 2023, Imexpharm brought in 1,385.8 billion VND in revenue, an increase of 28% over the same period last year. Thanks to the sale and liquidation of assets in the second quarter, which increased from 28 billion VND at the beginning of the year to 2,31.2 billion VND, the company's other income increased 4 times to 2,942.5 billion VND.

As a result, Imexpharm reported pre-tax profit and after-tax profit of VND285.8 billion and VND227.2 billion, respectively, up 46% over the same period and exceeding the after-tax profit of VND223.5 billion for the whole year of 2022. Compared to the pre-tax profit target of VND350 billion in 2023, Imexpharm has achieved 82% of the plan after the first 9 months of the year.

As of September 30, 2023, Imexpharm's total assets reached VND 2,486.7 billion, up 9% compared to the beginning of the year. Cash and bank deposits decreased by nearly half compared to the beginning of the year to nearly VND 201 billion.

Of which, there are nearly 103 billion VND in term deposits from over 3 months to under 12 months and nearly 66.3 billion VND in term deposits with original term of no more than 3 months.

Inventory value increased by 75% compared to the beginning of the year to nearly 775 billion VND; mainly raw materials increased by 85% to more than 448.1 billion VND and finished products increased by more than 253.8 billion VND.

Meanwhile, the cost of unfinished construction decreased sharply from VND 580.7 billion at the beginning of the year to VND 59.3 billion at the end of the third quarter of 2023. The reason for the decrease was that during the period, the company did not incur machinery costs at high-tech pharmaceutical factories and high-tech pharmaceutical factory costs, while at the beginning of the period, they recorded more than VND 457.2 billion and VND 72.6 billion, respectively.

At the end of the third quarter of 2023, Imexpharm had 474.5 billion VND in liabilities, an increase of 23% compared to the beginning of the year and all of which were short-term debts. The company's short-term financial leasing debt decreased by 15% due to the repayment of nearly 95 billion VND to the Asian Development Bank (ADB). However, during the period, the company incurred a loan of 79.6 billion VND from Shinhan Bank.

Imexpharm's equity capital was recorded at more than VND2,012.2 billion, up 6% compared to the beginning of the year, in which undistributed profit after tax increased by 51% to nearly VND400 billion .

Source