Inside a Tien Phong Plastic Joint Stock Company factory. (Photo courtesy of the company)Binh Minh Plastics Company (BMP)’s revenue reached 1.56 trillion VND (66.7million USD) in Q2, up 7% year-on-year. The company's profit after tax was 3.5times higher than in the second quarter of 2021, mainly thanks to thesignificant improvement in gross profit margin from 12.9% to 25.1%. Thebusiness attributed the increase in profit to the decrease in the price ofplastic raw materials and unchanged selling prices.
Tien Phong Plastic JSC (NTP) also recorded positive business results in Q2.Specifically, revenue increased 38% to 1.72 trillion VND (73.6 million USD).Gross profit doubled to 504 billion VND. Profit margin was 29.3%, up sharplyfrom 19.9% in the second quarter of 2021. However, financial expenses andselling expenses both increased sharply, especially selling expenses quadrupledto 232 billion VND, causing net profit to rise by 26% to 177 billion VND.
Vietnam Plastic Corporation (VNP) reported second-quarter gross profit marginincreased from 0.45% to 3.6%, gross profit reached VNĐ2.4 billion, many timeshigher than 316 million VND in the same period last year. However, the profitfrom joint ventures and associates decreased sharply from 34 billion VND to 11.5billion VND, causing the company's net profit to decrease by 46% compared tothe same period last year to 16.4 billion VND.
Dong A Plastic Joint Stock Company (DAG) announced second quarter revenueincreased by 8% to 633 billion VND, net profit was 5 billion VND, many timeshigher than 393 billion VND in the same period last year. Gross profit marginincreased from 4.4% to 5%.
According to Bloomberg data, the price of PVC resin, the main material formaking plastic pipes and wires, has gradually cooled down after peaking at$1,850 per tonne at the end of October 2021. By the end of June, the price fellto $1,000 per tonne, down 46% from the peak and to the price range in September2020, 23% lower than the same period last year.
BVSC Securities believes that a favourable PVC price will help Binh MinhPlastics Company (BMP)'s second half year earnings increase sharply. Itbusiness leaders said that they had no plans to adjust the selling price fromnow until the end of this year, which means that the selling price will remainat a high level after many upward adjustments in 2021.
On the other hand, consumption volume continued to recover thanks to morereasonable steel prices after many adjustments to boost civil construction andinfrastructure activities in the second half of 2022, leading to an increase indemand for plastic pipes. At the same time, the company plans to increasemarket share in the Central and Central Highlands with a number of campaignssuch as free shipping for orders over 50 million and events to introduceproducts and policies for project customers.
An Phat Holdings (APH) has two main business segments, plastic products andplastic resin trading. Therefore, the decrease in the price of plastic resinsin the second quarter helped improve the profit margin of packaging,engineering plastics and construction plastics, but the plastic resin tradingsegment decreased.
The plastic resin trading segment accounted for 62-44% of the group's totalrevenue, causing the overall gross profit margin to decrease. Specifically, thegross profit margin of the plastic resin trading segment decreased from 6% inthe second quarter of 2021 to 2.4%, the plastic product production segmentremained at 19.3%. Overall profit margin decreased from 12.2% to 9.1%.
During the quarter, the group reported a 35% increase in revenue to VNĐ5.08trillion, and a slight decrease in gross profit from 450 billion VND to 444billion VND. Improved financial performance and reduced losses in jointventures helped APH's net profit increase by 54% to 29 billion VND./.
VNA
