DHG approved to abolish FOL

July 05, 2018 | 11:01

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Hau Giang Pharmaceutical JSC (DHG) has recently been approved to lift the foreign ownership limit (FOL) to 100 per cent, according to information published on its website.

DHG approved to abolish FOL. Source:Vietnamfinance

The move will open the doors for old and new investors to increase their holdings in Vietnam’s biggest publicly-traded drug maker.

At present, Taisho Group from Japan is the biggest foreign shareholder in DHG after the purchase of 650,000 shares, or 0.5 per cent of the charter capital, to increase its holding to 24.95 per cent, equaling 32.606 million shares.

This year, DHG aims to make a net revenue of VND4.017 trillion ($178.53 million), down 1.1 per cent compared to the actual revenue in 2017, while its pre-tax profit is set to rise by 6.7 per cent on-year to VND768 billion ($34.13 million).

The runner-up is FTIF Templeton Frontier Markets Fund with 7.95 per cent. Meanwhile, State Capital Investment Corporation (SCIC) is the biggest stakeholder with 43.3 per cent.

Regarding the business results of DHG, despite having Taisho Group on board, DHG still saw a 4.4 per cent fall on-year in its gross profit in the first quarter of 2018.

DHG made a net revenue of VND908.4 billion ($40.37 million) during the period, up 3 per cent on-year and meeting 25.67 per cent of the company's annual target.

The drug maker also reported a gross profit of VND378.4 billion ($16.8 million), down 4.4 per cent on-year, thus meeting 22.3 per cent of the company's yearly target. DHG blamed the fall on the rise in the cost of goods sold during the period.

This year, DHG aims to make a net revenue of VND4.017 trillion ($178.53 million), down 1.1 per cent compared to the actual revenue in 2017, while its pre-tax profit is set to rise by 6.7 per cent on-year to VND768 billion ($34.13 million).

By Kim Oanh

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