Binh Minh Plastics JSC reported a post-tax profit of VND294.6 billion ($11.94 million) in the second quarter of 2023, a new record since it became a subsidiary of Nawaplastic Industries, a member of Thailand’s Siam Cement Group (SCG), in 2018.
The figure was 2 times higher year-on-year and extended its positive growth cycle to six consecutive quarters.
The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as BMP, earned net revenue of VND1.34 trillion ($61.24 million) in Q2, down 14%, according to its Q2 consolidated financial statement.
In the first six months of this year, Binh Minh Plastics recorded net revenue of more than VND2.78 trillion ($117.4 million), down 4%, and after-tax profit of VND575.4 billion ($24.3 million), up 111%.
As of June 30, BMP's total assets had stood at VND3.53 trillion ($149 million), up 16% compared to the beginning of the year. Of which, cash and bank deposits accounted for nearly 60%, equivalent to VND2.05 trillion ($86.7 million), while inventories were at VND449 billion ($18.98 million), down 22%.
The company only has VND55 billion ($2.33 million) of financial debt, all of which are short-term loans.
Ho Chi Minh City-based BMP aims to reach a revenue of VND6.36 trillion ($270.3 million) this year and an after-tax profit of VND651 billion ($27.7 million).
In 2022, BMP's after-tax profit hit VND696 billion ($29.7 million), up 224%, and net revenue reached VND5.81 trillion ($247.7 million), up 27% over the previous year.
At Thursday's close, the BMP share price stood at VND102,700 ($4.34) per unit.
Meanwhile, another major player Tien Phong Plastic JSC (NTP) reported net revenue of VND1.22 trillion ($51.7 million) and after-tax profit of VND128 billion ($5.4 million) in Q2, down 27% and 29% year-on-year, respectively.
The company said that sales of semi-finished products fell in the quarter, so profits fell.
In the first six months of this year, Tien Phong Plastic posted net revenue of VND2.52 trillion ($106.7 million), down 9%, and after-tax profit of VND246.5 billion ($10.4 million), down 24%.
As of June 30, the company's assets had stood at nearly VND4.97 trillion ($209.9 million), down 2% compared to the beginning of the year. Of which, cash and cash equivalents reached nearly VND456 billion ($19.28 million), up 2.7 times.
In 2023, Tien Phong Plastic has set a revenue target of VND5.88 trillion ($249.9 million), up 3%, and a pre-tax profit of VND535 billion ($22.8 million), down 5% compared to 2022.
In 2022, the company's net revenue reached VND5.69 trillion ($242.4 million) and after-tax profit hit VND480 billion ($20.5 million), up 18% and 3%, respectively.
On the Hanoi Stock Exchange (HNX), the NTP share price hit VND43,300 ($1.83) per unit at Thursday's close.
In early 2012, also through its subsidiary Nawaplastic Industries (Saraburi) Co., Ltd, SCG purchased a 23.84% stake of Tien Phong Plastic. However, at the end of 2017, Nawaplastic entirely divested from this company.
In a construction plastic industry report, Vietcombank Securities (VCBS) predicts that the price of PVC resin, the main material used for making plastic pipes and wires, in the second half of 2022 and in 2023 will remain at a low price level in the range of $800-1,000 per ton, helping to improve profit margins among plastics enterprises.