ACBS Securities has officially revised its investment rating for Imexpharm Pharmaceutical Joint Stock Company (HoSE: IMP), downgrading the ticker from “Buy” to “Neutral”. Concurrently, the financial institution slashed its target price by 26% to 44,500 VND per share, a valuation roughly 5% below IMP’s closing market price of 46,650 VND observed on May 22. This analytical downgrade matches a sharp market correction for the pharmaceutical stock, which has retracted nearly 17% (erasing 9,550 VND per share) in over a month since its historical peak of 60,200 VND on April 17, compressing the drugmaker’s total market capitalization down to 7,184 billion VND.
The negative price pressure stems primarily from sub-baseline Q1 2026 operational metrics:
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Revenue Contraction: Net revenue settled at 546 billion VND, highlighting an 8% year-on-year decline driven by shortfalls across both core distribution channels. The ethical hospital channel (ETC) dropped 11% due to a two-month maintenance shutdown of the injectable penicillin line at the IMP3 facility, combined with supply-chain raw material delays and intense competition from emerging EU-GMP standard factories. The over-the-counter retail channel (OTC) contracted 7% as pharmacies adjusted inventory holdings downward due to stricter drug tracking laws.
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Protected Bottom Line: Despite top-line deficits, net profit after tax managed a 10.1% increase to 82 billion VND, supported by a gross margin expansion from 39.5% to 41.5% alongside optimized human resource management and operational overhead reductions.
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Upstream Materials Risk: Financial analysts note that margins face significant headwinds starting Q4 2026 due to inflating global prices for petroleum-derived active pharmaceutical ingredients and excipients.
Parallel to the financial adjustments, Imexpharm’s governance structure underwent a paradigm shift as China-based Livzon Pharmaceutical Group Inc., operating via LIAN SGP Holding Pte. Ltd, finalized a public tender offer in early May 2026 to secure a 67.87% controlling stake in the enterprise. While the corporate integration is theoretically projected to bolster Imexpharm’s internal R&D scope and facilitate the future EU-GMP certification of its IMP5 plant, analysts have proactively trimmed their full-year 2026 forecasts by 15%, setting target net revenue at 2,452 billion VND (up 0.5%) and net profit at 368 billion VND (up 5.5%). Furthermore, the immediate post-takeover resignation of three board members on May 18 — including Chairman Woo Sungmin, alongside directors Truong Minh Hung and Chung Suyong — continues to draw heavy investor scrutiny toward the evolving operational dynamics inside the pharmaceutical heavyweight.