DSC Securities Acquires 13.9% Stake in Vietnam Medicinal Materials (DVM)

Overview

DSC Securities has acquired a 13.9% stake in Vietnam Medicinal Materials Corporation (DVM), becoming a major shareholder after purchasing over 4.6 million shares on April 14-15. The transaction reflects DSC’s growing involvement in the pharmaceutical sector, following a similar move into Vidipha (VDP) in late 2025.

Key Facts

• DSC Securities bought 2.83 million DVM shares on April 15 and 1.8 million shares on April 14, 2026.
• The purchases increased DSC’s ownership from 1.9 million shares (4.05%) to 6.54 million shares (13.9%).
• DVM shares hit a low of around VND 5,000 in February 2026 and have since recovered to about VND 8,500.
• In 2025, DVM reported net revenue of VND 1,451 billion, down 8% year-on-year.
• Net profit for 2025 fell 17% to nearly VND 40 billion, impacted by a 66% drop in financial income and a 47% rise in management expenses.
• In October 2025, DSC became the largest shareholder of Vidipha (VDP) with a 19.77% stake.
• DSC Chairman Nguyen Duc Anh and CEO Bach Quoc Vinh were added to Vidipha’s board after the stake acquisition.

What Happened

DSC Securities disclosed the purchase of over 4.6 million DVM shares in two trading sessions on April 14 and 15, 2026. The acquisition raised DSC’s holding from 4.05% to 13.9%, crossing the 5% threshold that requires disclosure as a major shareholder. The company did not disclose the total transaction value.

DVM shares have seen a significant recovery from a low of VND 5,000 in February 2026 to around VND 8,500 recently. The company’s 2025 financial results showed a decline in revenue and profit, with net profit falling 17% to nearly VND 40 billion.

Market Context

DVM is listed on the UPCOM market. The stock’s recent rally from VND 5,000 to VND 8,500 suggests renewed investor interest, possibly ahead of DSC’s accumulation. The pharmaceutical sector in Vietnam has been attracting attention due to favorable demographics and increasing healthcare spending. DSC’s parallel stake-building in Vidipha (VDP) on HOSE indicates a broader strategy to gain exposure to the sector.

Strategic Significance

DSC’s acquisition of a 13.9% stake in DVM positions it as a significant shareholder in a pharmaceutical company with a niche in medicinal materials. The move mirrors its earlier investment in Vidipha, where DSC became the largest shareholder and secured board representation. This pattern suggests DSC may seek active involvement in DVM’s strategic direction, potentially leveraging its financial expertise to improve operational efficiency or pursue consolidation. The pharmaceutical sector’s defensive characteristics and growth potential align with DSC’s apparent strategy of building concentrated positions in undervalued or turnaround candidates.

What to Watch

• Any further share purchases by DSC that could increase its stake above 15% or trigger a mandatory tender offer.
• DVM’s Q1 2026 earnings release to assess whether the business is stabilizing after the 2025 decline.
• Potential board changes at DVM following DSC’s major shareholder status.
• DSC’s next regulatory filings for any additional pharmaceutical sector investments.
• Price action in DVM shares as the market digests the news and DSC’s intentions become clearer.