'Ballpoint pen king' Thien Long scripts $4.2 mln Q1 profit

Stationery giant Thien Long has reported a Q1 profit of VND100 billion ($4.2 million) and net revenue of nearly VND919 billion ($38.7 million), up 16% and down 13% year-on-year, respectively.

The corporation, listed on the Ho Chi Minh City Stock Exchange (HoSE) as TLG, said revenue was increased through many sales promotion programs while profit was reduced by several factors including strong investments in staff to prepare for future growth; increased costs for sales activities readying for the year’s peak season; and investments in brand development.

As of March 31, 2023, TLG's total assets stood at VND2.78 trillion ($117.3 million), down more than VND86 billion ($3.6 million) compared to the beginning of the year. Of this, cash and cash equivalents were down nearly 45% to VND223 billion ($9.4 million), while inventories hit VND863 billion ($36.37 million).

The corporation had equity of VND2.02 trillion ($84.9 million), a slight increase compared to the beginning of 2023. At the end of Q1, undistributed after-tax profit was approximately VND613 billion ($25.8 million).

The TLG share closed Wednesday at VND59,600 ($2.5).

In 2022, the corporation reported an after-tax profit of VND401 billion ($17 million), up 45% year-on-year, exceeding its target by 43.2%. Its net revenue reached VND3.52 trillion ($149.96 million), up 32%, according to its consolidated financial statement.

Thien Long targeted an after-tax profit of VND400 billion ($17.06 million) in 2023, flat compared to the previous year and net revenue of VND4 trillion ($170.58 million), up 13.6% year-on-year, according to documents released at its 2023 annual general meeting on April 27.

From a modest ballpoint pen manufacturing facility established in 1981, the corporation posted robust growth to be officially listed on the Ho Chi Minh Stock Exchange in 2010.

Thien Long currently holds 60% of the domestic pens market share and is actively promoting stationery exports, according to its 2022 annual report. The corporation’s products have reached 70 countries including demanding markets like the U.S., Canada, Japan, Australia and South Korea.

In its shareholder structure, the largest shareholder is Thien Long An Thinh Investment JSC (with chairman Co Gia Tho as owner representative) with a 48% stake, followed by NWL Cayman Holdings Ltd. with 7.1% and Co Gia Tho 6.1%.

By the end of 2022, Thien Long had completed two big projects - the Thien Long Long Thanh factory in Dong Nai province with an investment value of about VND230 billion ($9.7 million) and a total built-up area of about 10,000 m2; and a distribution center at the Le Minh Xuan 3 industrial park in Binh Chanh district, Ho Chi Minh City.

In December 2022, the corporation’s board of directors approved the adjustment of overseas investment activities for the Flexoffice Pte.Ltd project in Singapore.

Accordingly, Thien Long adjusted the level of outward investment capital from $814,402 to $1.31 million in cash and as investor's equity.

The Flexoffice project, approved by TLG in 2019, operates in wholesale trade, export and import of office supplies, school supplies, plastic teaching aids, processed plastic products and products and goods that are not prohibited by the laws of Vietnam and Singapore.

The increase in investment capital aimed to recover, maintain and stabilize business activities for overseas projects, after the impact of the regional economic downturn and the 2020-2021 Covid-19 pandemic, the firm said.

At the same time, the corporation explored potential markets to promote the purchase and sale of goods to neighboring foreign markets like Malaysia, Philippines and Indonesia.