Chemical giant Vinachem subsidiaries post mixed profits in 6 months

Danang Rubber JSC and Lix Detergent JSC reported after-tax profit down 49% and 18.5% in the first six months of this year, respectively, while Lam Thao Fertilizers and Chemicals JSC posted profit up 14%.

State-run chemical group Vinachem is the parent company of these companies with over 50% stakes.

Danang Rubber JSC recorded net revenue of VND1.16 trillion ($49.15 million) in the second quarter of this year, up 1.2% year-on-year, and after-tax profit of nearly VND51 billion ($2.16 million), down 39%.

The company said due to lack of consumption in the domestic market, the proportion of exports contributing to total revenue increased compared to last year, affecting the profit margin.

In the first half of this year, the company, listed on the Ho Chi Minh Stock Exchange (HoSE) as DRC, reported net revenue of VND2.27 trillion ($96.2 million), down 6.5%, and post-tax profit of VND76.3 billion ($3.23 million), down 49% year-on-year.

In 2023, Danang Rubber has set a revenue target of VND5.06 trillion ($214 million), up 3% year-on-year, and after-tax profit of VND264 billion ($11.2 million), down 14%.

As of June 30, 2023, the company's total assets had stood at VND3.12 trillion ($132.1 million), down 8.6% compared to the beginning of the year, of which inventory recorded at VND1.27 trillion ($53.6 million), accounting for 40.6%.

On the HoSE, DRC stood at VND22,900 ($0.97) per unit at Friday's close.

Meanwhile, Lix Detergent JSC posted net revenue of VND687 billion ($20.06 million) in Q2, down 3.2%, and after-tax profit of VND47.7 billion ($2.02 million), down 31%.

In the first half, the company, listed on the Ho Chi Minh Stock Exchange (HoSE) as LIX, recorded net revenue of VND1.38 trillion ($58.2 million), flat compared to last year, and after-tax profit of VND92 billion ($3.85 million), down 18.5%.

In 2023, LIX has targeted net revenue of VND2.96 trillion ($125.1 million) and pre-tax profit of VND225 billion ($9.5 million).

At the end of June, LIX's total assets had stood at VND1.2 trillion ($50.7 million), down 2.6% compared to the beginning of the year. Liabilities were VND411 billion ($17.4 million), of which 98.5% was short-term debt.

On the HoSE, LIX finished at VND46,100 ($1.95) at Friday's close.

Lam Thao Fertilizers And Chemicals JSC (LAFCHEMCO) reported after-tax profit of VND32.3 billion ($1.37 million) in Q2, up 20% year-on-year, on a net revenue of VND867.7 billion ($36.7 million), up 12%

LAFCHEMCO, , earned a net revenue of VND867.7 billion ($36.7 million), up 12%.

In the first six months of 2023, LAS, listed on the Hanoi Stock Exchange (HNX) as LAS, posted net revenue of VND2.08 trillion ($87.9 million) and after-tax profit of VND65.5 billion ($2.76 million), up 14% and up 13.6%, respectively.

As of June 30, 2023, LAS's total assets had stood at VND2.05 trillion ($86.6 million), down 10% compared to the beginning of the year. Of which, cash and cash equivalents decreased by 50% to VND22.8 billion ($964,000), and inventories declined by 48.2% to VND638.4 billion ($26.99 million).

In 2023, the company has set a revenue target of VND3.25 trillion ($137.34 million) and pre-tax profit of VND120 billion ($5.07 million).

On the HNX, LAS closed Friday’s session at VND13,000 ($0.55).