Traphaco (TRA) 2025 Profit Up 8% as H1 2026 Earnings Surge 127%

Overview

Traphaco (ticker TRA, listed on HOSE) reported 2025 consolidated net revenue of VND 2,657 billion, up 13% year on year, and net profit of VND 278 billion, up 8%, with both figures exceeding the company’s own plan. The recovery follows a 2024 setback in which net profit fell 9.7% to VND 257.3 billion, and it has carried into H1 2026, when reviewed standalone net profit rose 127% to more than VND 142.5 billion.

Key Facts

• 2025 consolidated net revenue: VND 2,657 billion, up 13% year on year, above plan.
• 2025 net profit after tax: VND 278 billion, up 8% versus 2024, also above plan.
• 2024 comparison base: revenue of VND 2,370.2 billion (+1.7%) and net profit of VND 257.3 billion (-9.7%).
• H1 2026 reviewed standalone revenue: VND 1,370 billion, up 9%; net profit after tax above VND 142.5 billion, up 127%.
• Q2 2026 net profit after tax: VND 65 billion, up 36% year on year.
• H1 2026 cost of goods sold fell to 58.04% of net revenue, with the selling expense ratio down 5.61 percentage points year on year.
• 2026 targets: consolidated net revenue of VND 2,923 billion and net profit after tax of VND 306 billion.
• 2025 premium herbal medicine group grew 68%, with Boganic Premium up 70%; high-quality Western pharmaceuticals grew 31%.

What Happened

According to the company’s reported financial statements, Traphaco Joint Stock Company returned to growth in 2025 after a weaker 2024. Consolidated net revenue reached VND 2,657 billion, an increase of 13%, while net profit after tax rose 8% to VND 278 billion. Both metrics surpassed the targets management had set for the year. The company attributed the improvement to revenue growth combined with tighter cost control, with the cost of goods sold ratio and the selling expense ratio both declining.

The momentum accelerated in the first half of 2026. On a reviewed standalone basis, Traphaco recorded revenue of VND 1,370 billion, up 9% year on year, and net profit after tax of more than VND 142.5 billion, up 127%. In the second quarter alone, net profit reached VND 65 billion, 36% higher than the same period a year earlier. For the full year 2026, the company targets consolidated net revenue of VND 2,923 billion and net profit after tax of VND 306 billion.

Market Context

TRA trades on the HOSE exchange and closed at VND 36,000 on 10 October 2026. The stock sits within the Vietnamese pharmaceutical sector, which has faced pressure from currency movements, raw material costs and supply chain disruption in recent years. Traphaco’s strategy has centred on building GACP-WHO certified medicinal herb growing areas, the GreenPlan project and membership of the Union for Ethical BioTrade (UEBT), reducing reliance on imported inputs. The company has maintained a cash dividend policy of 30-40% per year according to published information, while directing retained resources into production, research and development, line upgrades and digital transformation.

Strategic Significance

Traphaco frames 2026-2030 as a period for expanding growth headroom, shifting emphasis from its traditional herbal base toward high-quality Western pharmaceuticals and EU-GMP standard manufacturing. The 2025 product data supports that transition: premium herbal medicines grew 68% and high-quality Western pharmaceuticals grew 31%, suggesting the higher-margin segments are scaling faster than the group average. For long-term investors, the thesis rests on whether in-house herb cultivation and quality control can compress input costs durably, and whether EU-GMP capacity opens export and tender channels that domestic-only producers cannot access. The H1 2026 margin improvement, with cost of goods sold at 58.04% of net revenue, is the first concrete evidence that this mix shift is translating into profitability rather than only volume.

What to Watch

• Full-year 2026 consolidated results versus the VND 2,923 billion revenue and VND 306 billion profit targets.
• Whether the H1 2026 gross margin improvement holds through the second half, or reflects one-off input cost timing.
• Progress and capital expenditure disclosures on the EU-GMP standard factory and high-quality Western pharmaceutical lines.
• Dividend announcement confirming the stated 30-40% cash payout policy.
• Segment disclosure separating premium herbal, mainstream herbal and Western pharmaceutical revenue in upcoming filings.