A rubber farm managed by Tay Ninh Rubber JSC (Photo: baodautu.vn)Hanoi (VNS/VNA) -Natural rubber firms are making profits from non-core activities despitefalling rubber prices on global markets.
Phuoc Hoa Rubber JSC (HoSE:PHR) reported 335 billion VND (14.3 million USD) in revenue for the firstquarter of 2020, up 18 percent on-year. Pre-tax profit soared 260 percenton-year to 172.5 billion VND in January-March.
The company targets to earn totalrevenue of 2.46 trillion VND and pre-tax profit of 1.15 trillion VND in 2020,up 126 percent and 134 percent year on year.
Higher earnings are forecastbecause Phuoc Hoa Rubber expects to receive compensation from handing over itsindustrial parks to industrial park developers Nam Tan Uyen JSC andVietnam-Singapore Industrial Park.
Selling assets is expected tobring high turnovers to the company as its core business – rubber exploitationand trading – has been affected negatively by the global COVID-19 pandemic.
In the first three months ofthe year, Phuoc Hoa Rubber posted a 40 percent decline in its export volume,which was 1,024 tonnes – fulfilling 8.9 percent of the full-year plan.Purchasing and processing volumes also fell 35 percent and 51 percent on-year,respectively.
The company’s board ofdirectors has predicted consumption would keep falling in the remaining monthsof the year.
Hoa Binh Rubber JSC (HoSE: HRC)also recorded good earnings growth in the first quarter of the year.
The company reported an annualincrease of 27 percent in its first quarter net revenue, which touched 43billion VND. Its net profit gained more than a third on-year to 825 million VNDin the first three months.
According to the companyspokesperson Banh Manh Duc, Hoa Binh Rubber recorded strong gains in net profitdue to receivables from its clients, which were worth at least 4.5 billion VND.
Tay Ninh Rubber JSC (HoSE: TRC)saw its profit surge five times on-year to 20.3 billion VND in the firstquarter, though revenue dropped 26.3 percent on-year to 52 billion VND.
The company reported it hadearned 21 billion VND from selling fixed assets, which helped cut costs by 30 percentand boosted profit.
According to TRC, naturalrubber firms’ operation depends significantly on the price of natural rubberand the conditions of international markets.
In the first three-monthperiod, rubber futures on the Tokyo Commodity Exchange (TOCOM) lost 30 percentfrom 207.80 yen (1.93 USD) per kilo on January 14 to end March at 145.20 yenper kilo as the global pandemic COVID-19 hampered global trade and pulled thedemand down.
Rubber prices are forecast tokeep dropping in the months to come, according to the Department of Export andImport under the Ministry of Industry and Trade. Rubber price hit its 11-yearlow of 140.60 yen per kilo on April 2.
Ending the first quarter, Vietnamexported 227,000 tonnes of rubber and rubber products, worth 331 million USD.The figures were down 33 percent on-year in volume and 26 percent on-year invalue.
Facing the problems brought bythe disease, natural rubber companies have switched from rubber farming toindustrial park development, which is expected to bring them huge profits asthey are managing a large scale of land.
The disruption of globalsupply, caused by the China-US trade war and COVID-19, will encourageinternational corporations to more their plants from China to otherneighbouring countries, including Vietnam./.
Phuoc Hoa Rubber JSC (HoSE:PHR) reported 335 billion VND (14.3 million USD) in revenue for the firstquarter of 2020, up 18 percent on-year. Pre-tax profit soared 260 percenton-year to 172.5 billion VND in January-March.
The company targets to earn totalrevenue of 2.46 trillion VND and pre-tax profit of 1.15 trillion VND in 2020,up 126 percent and 134 percent year on year.
Higher earnings are forecastbecause Phuoc Hoa Rubber expects to receive compensation from handing over itsindustrial parks to industrial park developers Nam Tan Uyen JSC andVietnam-Singapore Industrial Park.
Selling assets is expected tobring high turnovers to the company as its core business – rubber exploitationand trading – has been affected negatively by the global COVID-19 pandemic.
In the first three months ofthe year, Phuoc Hoa Rubber posted a 40 percent decline in its export volume,which was 1,024 tonnes – fulfilling 8.9 percent of the full-year plan.Purchasing and processing volumes also fell 35 percent and 51 percent on-year,respectively.
The company’s board ofdirectors has predicted consumption would keep falling in the remaining monthsof the year.
Hoa Binh Rubber JSC (HoSE: HRC)also recorded good earnings growth in the first quarter of the year.
The company reported an annualincrease of 27 percent in its first quarter net revenue, which touched 43billion VND. Its net profit gained more than a third on-year to 825 million VNDin the first three months.
According to the companyspokesperson Banh Manh Duc, Hoa Binh Rubber recorded strong gains in net profitdue to receivables from its clients, which were worth at least 4.5 billion VND.
Tay Ninh Rubber JSC (HoSE: TRC)saw its profit surge five times on-year to 20.3 billion VND in the firstquarter, though revenue dropped 26.3 percent on-year to 52 billion VND.
The company reported it hadearned 21 billion VND from selling fixed assets, which helped cut costs by 30 percentand boosted profit.
According to TRC, naturalrubber firms’ operation depends significantly on the price of natural rubberand the conditions of international markets.
In the first three-monthperiod, rubber futures on the Tokyo Commodity Exchange (TOCOM) lost 30 percentfrom 207.80 yen (1.93 USD) per kilo on January 14 to end March at 145.20 yenper kilo as the global pandemic COVID-19 hampered global trade and pulled thedemand down.
Rubber prices are forecast tokeep dropping in the months to come, according to the Department of Export andImport under the Ministry of Industry and Trade. Rubber price hit its 11-yearlow of 140.60 yen per kilo on April 2.
Ending the first quarter, Vietnamexported 227,000 tonnes of rubber and rubber products, worth 331 million USD.The figures were down 33 percent on-year in volume and 26 percent on-year invalue.
Facing the problems brought bythe disease, natural rubber companies have switched from rubber farming toindustrial park development, which is expected to bring them huge profits asthey are managing a large scale of land.
The disruption of globalsupply, caused by the China-US trade war and COVID-19, will encourageinternational corporations to more their plants from China to otherneighbouring countries, including Vietnam./.
VNA
