Covid 19 – it’s not a break but a boost

In recent days, Vietnam’s stock market has been strongly influenced by COVID-19 news. Concerns about the pandemics, plus the second quarter of business reporting season in which many businesses failed to meet targets, the stock market fell into a sell-off.

Ending the session of July 29th, VN-Index fell more than 22.5 points, to close at 790.84 points, lost the threshold of 800 points and the support levels tried to maintain before.

The market breadth was strongly inclined to sellers with 352 decliners while only 59 increased on HOSE. The VN30 stocks were also on a strong decline with 29 stocks falling and only 1 advancing stock.

In the context of fiery securities, shares of Danameco Medical Joint Stock Corporation (HNX: DNM) still hit the ceiling despite the market. In the last 3 trading sessions alone, DNM shares has increased by more than 32.85% with 3 consecutive ceiling-hitting sessions.

This can be said, as the pandemic out broke, the demand for medical consumables  gradually increased, especially medical facemask. With that in mind, many investors started to hunt for stocks of facemask manufacturer listed on Vietnam stock market, including Danameco.

Specifically, starting from the Jan 30th session (the first return session after Lunar New Year holiday), DNM shares has rallied to the ceiling for many consecutive sessions. From the beginning of the year until now, DNM’s share price has increased by more than 547%, an extremely impressive increase when the VN-Index fell by more than 170 points, equivalent to more than 17.7%.

DNM’s share price increased strongly with the improvement in liquidity.

According to statistics, the trading volume of this stock is quite low, the average each session is usually below 2,500 shares / session. However, when COVID-19 started to appear, the stock’s liquidity increased sharply, recording more than 28,000 shares / session averagely in the last quarter.

Huge profits during pandemics

In terms of business activities, Danameco operates mainly in the field of manufacturing and trading drugs and medical equipment and supplies.

Looking back to the past, DNM’s business results have also experienced many ups and downs. In just 4 years, from 2016-2019, the profit after tax of the company also fluctuated many times. By the end of 2019, Danameco recorded more than 8.68 billion dong of profit after tax, more than 2.2 times the figure of 2018. The company said the result was achieved through market expansion.

However, COVID-19 not only increased the shares value of DNM, but also made a huge breakthrough for company business result, making Danameco among the fastest growing companies in the past 2 quarters.

Danameco’s business results in recently.

Recently, in the second quarter of 2020, Danameco after-tax profit was reported nearly 17.4 billion dong, increased by 569% compared to Q2/2019. According to company’s explanation on business results, under the context of COVID-19, the company has focused on boosting the production of products for epidemic prevention such as medical masks and protective coveralls. From there, boost revenue to increase sharply year-on-year. In addition, Danameco also invested in production technology, improves production capacity and enhances market expansion and development. These factors have contributed to the strong boom in revenue and profit of the company.

By the end of Q2/2020, Danameco’s total assets reached more than 478 billion VND, an increase of 125% compared to the beginning of 2020. In which, short-term assets reached 336.4 billion VND, an increase of 103% compared to the beginning of the year, mainly short-term investments, short-term financial investments, inventories and other receivables … The company’s long-term assets also recorded a sharp increase, reaching more than 141.6 VND billion, an increase of 203.9% compared to the beginning of 2020, of which mainly the increase in fixed assets.

To expand business operations, Danameco has also increased the use of debt. At the end of the Q2/2020, the total liabilities of the company amounted to more than 367.6 billion VND, increased more than 193% from the beginning of the year. In which, mainly short-term debts such as payables to sellers, buyers’ prepayments and accrued expenses … The company’s long-term liabilities also increased sharply in long-term loans and finance lease debts, by more than 12.86 billion at the end of Q2/2020.


Face mask tips for kids during covid-19

[] According to US Center for Disease Control and Prevention (CDC), children are subjects of poor resistance and susceptible to infectious diseases, which make preventative measures such as frequent hand washing, proper nutrition and wearing mask in public places become essential to their wellness, especially during the time that covid-19 pandemic remains complicated. Here comes some few tips that would help!

Choose product that could support fine dust filter and bacteria filter

Fine dust is the tiny dust particles in the air. When the concentration increases, the air will be dimmed and visibility is reduced. Long-term exposure to fine particles is the cause of hemophilia and blood poisoning (which is the reason for serious damage of circulatory system and depression of the nerve system and cardiovascular diseases). Once pervading into the body, fine dust will reduce the function of the lungs, causing chronic bronchitis, asthma, lung cancer. In addition, fine dust contains potential pathogens, dangerous bacteria such as acute pneumonia SARS, flu and diarrhea.

To choose the right product that qualified for 2.5PM dust filtration, consumers should carefully read the ingredients, and uses and qualification tests cited on the packaging before buying.

Sản phẩm khẩu trang y tế trẻ em Danameco. Ảnh: Thanh Duy. Danameco Medical Facemask for children. Photo: Thanh Duy


Choose the size that fits

Facemask prevents you from directly breathing air droplets that may containing viruses and other pathogens. For that reasons, wearing a facemask, especially during the pandemic of Covid-19, is critical no matter for adults or children. To children, parents should pay more attention to mask’s size.

Recently, Danameco launched a brand new line of product specially designed for kids. The product has passed the test of Vietnam Ministry of Health, qualified for EN1486 EU standards and U.S. ASTM F2100.

Accordingly, face mask for 6-12 year old children uses soft and adjustable nose splint and earloop strap, breathable nonwoven fabrics and high-quality bacterial filter layer. With face mask for 2-5 year old children, nose splint is omitted to avoid causing unexpected harm to child’s nose bridge.

Testing process for materials Testing process for medical facemask’s materials. Photo: Thanh Duy.


Water-proof and anti-allergic materials

Non-woven fabric, created by spray weaving technology that melts evenly, is water resistant that help prevent droplets in the air, reducing the risk of infection for children.

To be able to bring non-woven fabrics to the production, Danameco has followed a strict control process, ensuring selected materials are met the test of US International Accreditation Organization, ISO 190993 Singapore and other clinical tests to prove its non-allergenic characteristic.


Product origin is important

On the morning of August 15 2020, Market Management Team No. 6 (Ha Tinh Administration of Information Management) coordinated with Traffic Police Department and Ha Tinh Police to arrest a truck that carried a large number of medical masks without receipts and license. Experts say that mask of unknown origin and poor-quality materials can cause serious respiratory diseases than wearer may think of, especially for children.

Therefore, in order to choose right products, parents should pay attention to reputable brands and information made public on product covers. Trusted products will provide users with manufacturer name, distributor (if any), barcode, LOT number, expire date, and other qualification document numbers.

Lê Nguyễn


Selling medical masks helped Danameco’s profit increase 81 times the previous year

Tổng công ty cổ phần Y tế Danameco (DNM) vừa công bố doanh thu và lợi nhuận tăng trưởng đột biến so với cùng kỳ năm trước. Cụ thể, doanh thu thuần trong quý 3/2020 đạt 207,2 tỉ đồng, cao gấp 3,3 lần và lợi nhuận sau thuế đạt 4,81 tỉ đồng, cao gấp 81,3 lần so với quý 3/2019 (tương đương tăng 8.035%). Tuy nhiên trong kỳ, các chi phí của doanh nghiệp cũng tăng mạnh như chi phí tài chính gấp 2,6 lần cùng kỳ năm trước, lên mức 3,5 tỉ đồng; chi phí bán hàng và chi phí quản lý doanh nghiệp lần lượt tăng gấp 4,6 lần và tăng gấp rưỡi quý 3/2019, đạt 16,7 tỉ đồng và 6,5 tỉ đồng.
Giải trình nguyên nhân doanh thu quý 3/2020 tăng trưởng đột biến so với cùng kỳ năm trước, công ty Danameco cho biết, sự bùng phát của dịch Covid-19 trong năm 2020 đã khiến nhu cầu các sản phẩm như khẩu trang, trang phục chống dịch… tăng mạnh. Cầu thị trường tăng cao đã mang đến cơ hội tăng trưởng đột biến cho doanh nghiệp sản xuất vật tư y tế như Danameco. Bên cạnh đó, trong 9 tháng năm 2020, công ty đã mở rộng đầu tư nhà xưởng, máy móc thiết bị và năng lực sản xuất tại các nhà máy; nghiên cứu mở rộng thị trường, đặc biệt là thị trường xuất khẩu…
Lũy kế 9 tháng năm nay, công ty ghi nhận doanh thu gần 573,5 tỉ đồng, gấp 3,8 lần so với cùng kỳ năm trước. Công ty đạt lợi nhuận sau thuế hơn 31 tỉ đồng, gấp 10 lần so với lợi nhuận chỉ hơn 3 tỉ đồng của 9 tháng năm 2019 và đã vượt 27% mục tiêu kế hoạch lợi nhuận cả năm.
Một công ty khác là Công ty cổ phần Dược Hậu Giang (DHG) cũng báo cáo quý 3/2020 doanh thu thuần đạt 865 tỉ đồng, giảm 1,1% so với cùng kỳ năm trước nhưng lãi sau thuế đạt hơn 166 tỉ đồng, tăng trưởng 41,7% so với quý 3/2019. Lũy kế 9 tháng năm 2020, Dược Hậu Giang đạt doanh thu gần 2.544 tỉ đồng, giảm 2,8% so với cùng kỳ năm trước nhưng lợi nhuận sau thuế đạt 529 tỉ đồng, tăng 23,8% so với 9 tháng năm 2019… 
Nguồn: Theo báo Thanh Niên 

Danameco shareholders meeting 2020

Danameco is a company specialized in medical face mask and protective coverall production. Its business activities as well as shares got almost no attention until the outbreak of Covid-19, since the demand of medical face masks have rose up rapidly. Accordingly, Danameco reported its profit of 8.2 billion VND for the first quarter of 2020, which was 8 times higher compared to the same period last year and nearly exceeded 2019’s profit.

In the General Meetings of Shareholders on 26th June, Mr. Le Hai Trong – Chairman of Danameco Medical Joint Stock Corporation (HNX:DNM) emphasizes that from the beginning of Covid-19, the Board of Directors and Board of Management anticipated the complexity of the pandemic, and set the target that exporting is not only for the current situation, but also a long-term development strategy.

Wearing masks is one of very important preventive measures strongly recommended b y WHO during Covid- 19, but many countries have not got familiar with it. Therefore, this is a good chance for Danameco to boost exports. However, this business has mainly focused on developing the domesticmarket, and the proportion of revenue from exporting in 2019 just stood at 6%. That is why boosting exports is now a big challenge for Danameco.

Wearing masks is one of very important preventive measures strongly recommended b y WHO during Covid- 19, but many countries have not got familiar with it. Therefore, this is a good chance for Danameco to boost exports. However, this business has mainly focused on developing the domestic market, and the proportion of revenue from exporting in 2019 just stood at 6%. That is why boosting exports is now a big challenge for Danameco.