Domesco Medical Import-Export Stock (DMC) continuously goes against the market trend

Despite the strong correction in the stock market, shares of Domesco Medical Import-Export Joint Stock Company (stock code: DMC) still hit the ceiling for two consecutive sessions.

Shares of Domesco Medical Import-Export Joint Stock Company closed the first trading session of this week at 64,600 VND, up to the maximum range compared to the reference price. Two consecutive ceiling sessions helped this stock increase by 14.3%, from the price range of 56,500 VND to the current price of 64,600 VND. This is also the highest price range of this stock in the past 4 months. The company's market capitalization calculated at this price is 2,243 billion VND.

Today alone, DMC is one of the four rare stocks on the Ho Chi Minh City Stock Exchange that went against the market trend to hit the ceiling and closed with no sellers. The matched order liquidity reached 19,700 shares, equivalent to VND1.27 billion, only 30% compared to the session at the end of last week. However, this matched order volume is still significantly higher than the average level of the past 10 sessions.

DMC was almost alone in this price increase because other pharmaceutical stocks such as IMP, DHG, OPC all decreased or remained unchanged compared to the reference. The increase of this stock was triggered shortly after the State Capital Investment Corporation (SCIC) announced the list of divestments in the first phase in 2024, including Domesco. SCIC currently holds 35% of Domesco's capital, equivalent to VND120.5 billion.

DMC stock price and liquidity chart.

In 2023, Domesco recorded accumulated revenue of VND 1,721 billion, up from VND 1,593 billion in the same period. However, the cost of goods sold increased sharply while other expenses decreased insignificantly, so the profit after tax only reached VND 183 billion, slightly down from VND 200 billion in the previous year.

In the last quarter of 2023 alone, Domesco recorded net revenue of VND468 billion and after-tax profit of VND57.8 billion. The management board said that profit in the last quarter of last year decreased by 18.5% compared to the same period due to high input material prices due to disruptions in the supply chain after the pandemic.

In addition, the company has strengthened its sales policies to boost sales and maintain market share amid price pressure due to increased competition in the non-hospital channel, which has affected profits. In addition, to ensure that treatment facilities have enough drugs to treat patients, the company continues to supply drugs under contracts despite reduced profits.

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