DHG PHARMACEUTICAL JOINT-STOCK COMPANY

The precursor of the subject was a State-owned company that operated in 1974. It was equitized in 2004. The subject's stocks have been listed on the Ho Chi Minh Stock Exchange with stock code DHG since 2006. Taisho Pharmaceutical Co., Ltd. has become the biggest shareholder since 2019 with an ownership ratio of 51.01%. The second biggest shareholder is State Capital Investment Corporation with an ownership ratio of 43.31%.
The subject is considered one of the leading companies in the field of manufacturing pharmaceutical products in Vietnam. Some prominent products are children's packs, pain relievers, and fever reducers branded Hapacol. Pharmaceutical products and cosmetics products brought 84% and 11% of revenue for the subject in 2022, respectively. About 84% of products are supplied to the domestic market. In 2022, the subject developed 3 new markets in the Middle East and Asia, bringing the total export markets to 20 countries and 27 distributors with a total value of 5 years' accumulated export turnover of more than USD 20 million. Some of its exported markets are Moldova, Ukraine, Myanmar, Russia, Mongolia, Cambodia, Nigeria, Laos, Singapore, Jordan, Sri Lanka, etc.
For the fiscal year 2023, the subject recorded net revenue of VND 5,015 billion and pre-tax income of VND 1,160 billion. In the latest fiscal year, the subject set a net revenue target of VND 5,000 billion and a pre-tax income target of VND 1,130 billion, an increase of 7% and 3%, respectively compared to 2022. With the results achieved, the subject exceeded the plan for both revenue and income targets in 2023. Some experts believe that the company's gross profit margin will be improved thanks to the fact that China has opened up economic trade since the beginning of 2024, and the restored supply will help the price of API (Active Pharmaceutical Ingredient) input materials (accounting for about 60% of production costs) be stabilized. In addition, the subject also strives to upgrade factories to meet Japan-GMP and EU-GMP standards to increase competitiveness when bidding for group 1 and group 2 drugs in the ETC channel (hospital channel). At the same time, the subject is promoting export channels with strong support from the parent company as well as efforts to upgrade production lines to increase the number of products meeting export standards in the forthcoming time.