Traphaco's drug production line. The company plans a 30-per-cent cash dividend payment for 2020. — Photo ndh.vn

Despite the COVID-19 outbreak, Traphaco Joint Stock Company has endorsed higher business targets for 2020 with dividend payment of 30 per cent.

The drug manufacturer is expected to earn VND2 trillion (US$86 million) in revenue and VND80 billion ($3.4 million) in after-tax profit this year, up 17 per cent and 5.5 per cent, respectively, compared to 2019.

Revenue of the parent company is forecast at VND1.75 trillion.

At its shareholders’ meeting last week, chairwoman Vu Thi Thuan said the plan was challenging but feasible.

She said the company’s main market – Over-The-Counter (OTC) drugs (non-prescription medicine) – was experiencing low growth so the company planned to increase investment in manufacturing new drugs with expected revenue growth of 20 per cent per year until 2025.

Traphaco would continue to promote its strengths in oriental medicine, expecting this segment to grow 7 per cent per year, Thuan said.

Besides, the company planned to expand its distribution of products and increase drug portfolios by acquiring new drugs from foreign partners, especially Daewoong Pharmaceutical Co Ltd. In 2020, the company would take delivery of 10-15 new products from the South Korean partner, she said.

The company plans a 30-per-cent cash dividend payment for 2020, the same as 2019.

Ending 2019, Traphaco reported total revenue of VND1.71 trillion, a year-on-year decline of 5 per cent. Its net profit reached VND171 billion, the lowest since 2014 and a slight decrease of 2 per cent from the previous year.

Shares in the company rose in the last two sessions last week but declined 3.9 per cent on Monday to VND49,000 ($2.10). Traphaco's shares lost about 20 per cent in value this year. — VNS