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.


Danameco continues to donate hundreds of thousands of medical facemask

Danameco handed over 50,000 medical masks to the Vietnam health sector, assisting doctors and medical staffs in the treatment and prevention of Covid-19 pandemic.

The medical masks presented by Danameco are sterilized 3-layer masks, exclusively for medical staff. According to Danameco’s representative, the company’s masks have not been widely sold in the Vietnamese market, but for domestic hospitals and export supply only and are manufactured at two modern Danameco factories in Da Nang and Quang Nam.

Dr. Nguyen Xuan Truong received masks Dr. Nguyen Xuan Truong (3rd from left), on behalf of the Ministry of Health received the donation from Mr. Le Hai Trong (3rd from right), Danameco representative. Image: Manh Thang.


On behalf of the Ministry of Health to receive 50.000 masks, Dr. Nguyen Xuan Truong, Chief of the Office of the Ministry of Health, said that this is timely support during the period when the Ministry and the whole country are making efforts to fight the Covid-19 epidemic. Dr. Truong highly appreciated Danameco’s contribution and said that he would use these masks effectively in the prevention of acute pneumonia.

Danameco is one of the businesses that actively support the prevention of pneumonia. Previously, on February 10, Danameco handed over 60,000 medical masks to the Ministry of Public Security and the General Department of Logistics (Ministry of Defense). In addition, Danameco also donated masks to many agencies and units throughout the country, selling low-priced masks in limited quantities to people in the area where the company is located.

According to Mr. Le Hai Trong, upholding the spirit of “fighting the pandemic is like fighting an enemy”, the company has operated 3-shift production from mid-February until now to meet customer’s demands. However, due to the current huge demans, Danameco has to reject many foreign customers and domestic units. If favorable, next month Danameco will put into operation 4-5 more mask production lines, increasing the capacity of Danameco’s factories to about 400,000-500,000 masks a day.

“At that time, in addition to export orders, we will be able to meet more domestic demands with the quality of masks for export,” added Mr. Le Hai Trong.

Thanh Duong


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