YungShin Global Holding Corporation’s subsidiary, Vetnostrum Animal Health, will hold an earnings presentation on the 27th, and is expected to be listed in late April, becoming the first animal pharmaceutical company in Taiwan to go public. Chairman and CEO Kai-Wei Chung stated on the 26th that Vetnostrum focuses on three major markets: animal health, feed additives, and pet health, with plans to become one of the top three animal pharmaceutical companies in Asia within the next five years.
Vetnostrum achieved consolidated revenue of NT$1.29 billion last year, a 7.2% year-on-year increase, with gross profit of NT$440 million, a 23.5% increase, and net profit after tax of NT$136 million, a 49.1% increase. Earnings per share (EPS) reached NT$2.06. Analysts expect Vetnostrum to experience double-digit growth in both revenue and profits this year.
Vetnostrum was established following the acquisition of a foreign pharmaceutical company by YungShin Pharmaceuticals in 2016 and the integration of its animal business division. It is now one of Taiwan's leading animal pharmaceutical manufacturers, primarily engaged in the production and sales of chemical drugs and feed additives for animals. The company holds over 300 domestic animal product licenses, with products divided into four categories: therapeutic drugs, medicated feed additives, non-medicated feed additives, and pet medications and health products.
Kai-Wei Chung noted that 98% of Vetnostrum’s revenue comes from the economic animal market, while the remaining 2% comes from the pet market. The economic animal market includes drugs, antibiotics, and feed additives (both medicated and non-medicated) for livestock, poultry, and aquaculture. Although the consumption of pork in Taiwan has decreased in recent years, chicken consumption continues to rise. More importantly, Vetnostrum’s products are gradually replacing imported products, resulting in stable growth in the economic animal sector.
Regarding the pet health market, Kai-Wei Chung explained that although the pet health market currently represents a small portion of the company’s revenue, Vetnostrum is optimistic about its growth potential and aims to increase its share of the revenue from pet health to 30% within five years.
Additionally, Vetnostrum currently generates only 10% of its revenue from exports. To expand its overseas market, the company plans to pursue acquisitions abroad after listing, with Southeast Asia and Japan as priority markets. Vetnostrum aims to have its own production bases overseas within five years.
Kai-Wei Chung emphasized that expanding into international markets is the necessary path for Vetnostrum. With a current business scale of approximately USD 40 million, the company plans to continue expanding its presence in overseas markets and aims to be one of the top three animal pharmaceutical companies in Asia within five years.
To prepare for international expansion, Vetnostrum’s existing facilities are certified with WHO GMP, GMP, FAMI-QS, and ISO9001 certifications. It is the only animal pharmaceutical company in Taiwan with WHO GMP certification, which will accelerate its certification process in Southeast Asia and enable it to develop high-end, high-quality international products for markets in Australia, Japan, the U.S., and other high-regulation animal pharmaceutical markets.
According to Precedence Research, the global animal health market is expected to reach USD 76.82 billion by 2030, with a compound annual growth rate (CAGR) of 4.2% from 2022 to 2030. The global animal pharmaceutical market is expected to reach USD 40.75 billion by 2028, with a CAGR of 6.67%. The feed additives market was valued at USD 40.74 billion in 2022 and is expected to continue growing at a CAGR of 3.6% from 2023 to 2030.
Resource: 寵物藥藥廠永鴻生技 4月下旬掛牌
