We initiate coverage on IMP with a BUY rating and projected TSR of 40.3%. We believe IMP’s EU-GMP (EU Good Manufacturing Practice standard) capacity expansion will allow it to capture Vietnam’s growth in pharma spending, especially in the faster-growing hospital channel where Government policies are favoring domestic companies with strong production technology. IMP inaugurated a new EU-GMP factory with a designed capacity of 265 million units/year in July 2019