IMP Update- BUY

In 3Q2025, the company delivered 5.3% YoY and 6.2% YoY increases in net revenue and EAT, respectively, in line with our projections. We maintain our respective growth projections at 14.3% YoY and 17.1% YoY for IMP in 2025 and target price at VND60,000/share by YE2026. Rating BUY.

Net revenue and EAT climbed by 5.3% YoY and 6.2% YoY in 3Q2025, bringing IMP’s 9M2025 figures to VND1,800bn (+15.9% YoY) and VND242bn (+20.7% YoY), respectively. Sales from in-house production captured almost 100% of its net revenue.

The softer performance in 3Q was largely attributable to the pharmacy channel while the hospital channel stayed on its growth track. Pharmacy gross revenue slid by 4.2% YoY (net revenue not disclosed), as the 1H base effect normalized and customers’ demand decelerated following stockpiling in 2Q ahead of IMP price hikes and the government’s revised household business tax policies. Nonetheless, 9M pharmacy revenue still surged by 19% YoY. Traditional pharmacies, accounting for 75% of channel sales, rose by 2.7% YoY in 3Q and 21% YoY in 9M.

Meanwhile, the hospital channel sustained its growth trajectory (+16.5% YoY in 3Q and 21% YoY in 9M in gross sales; net sales not disclosed). The government’s priority for local drugs, along with the company’s advanced production standards and increasing focus on high-value products have underpinned the hospital channel’s momentum.

EAT was supported by a heightened gross margin throughout three quarters of the year (reaching 39.7% in 9M2025 vs. 38.0% in 9M2024) thanks to a well-managed materials sourcing, optimized production planning, slight increase in material prices and preference for high-margin products. Still, the SG&A-to-net revenue ratio slightly inflated to 21.8% in 9M2025 (from 21.2% a year earlier).

We maintain our projections that the company may deliver VND2,520bn (+14.3% YoY) in net revenue and VND376bn (+17.1% YoY) in EAT in 2025. The respective growth is projected at 13.9% and 15.2% YoY in 2026. Combining the DCF and PER methods, our target price for IMP by YE2026 is VND60,000/share.