Vietnam wood majors report Q1 profit plunge

By Trang Nguyen
Wed, May 17, 2023 | 9:05 am GMT+7

Vietnam's major wood producers Phu Tai, An Cuong, Truong Thanh, and Duc Thanh reported a plunge in profits in the first quarter of this year amid declining orders.

Phu Tai JSC recorded after-tax profit of VND62.4 billion ($2.66 million) in Q1, down 57% year-on-year.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as PTB, earned net revenue of VND1.41 trillion ($60 million), down 18%.

Phu Tai JSC's Thang Loi workshop in Tuy Phuoc district, Binh Dinh province, south-central Vietnam. Photo courtesy of the company.

Phu Tai JSC's Thang Loi workshop in Tuy Phuoc district, Binh Dinh province, south-central Vietnam. Photo courtesy of the company.

The company said revenue fell due to inflation in the European and U.S markets, affecting purchasing power. The decline in the Vietnamese real estate market from Q2/2022 has also affected its business results of Q1/2023.

As of March 31, the company's assets had reached VND5.13 trillion ($218.59 million), down 2% from the beginning of the year, of which inventory hit VND1.69 trillion ($71.9 million), down 4%.

In 2023, Phu Tai expects a revenue of VND7.23 trillion ($308 million), up 3%, but pre-tax profit down 10% to VND550 billion ($23.45 million).

PTB shares finished at VND46,000 ($1.96) at Tuesday's close.

Meanwhile, An Cuong Wood Working JSC posted after-tax profit of VND36.3 billion ($1.55 million) and net revenue of VND680 billion ($28.99 million), down 70% and 20% respectively.

The company (ACG) said that its profit decreased compared to the same period last year as the complicated economic situation in the country and in the world made consumers cautious in spending and selling expenses increased due to the company actively expanding its distribution system.

By the end of Q1, the company's assets had reached VND5.27 trillion ($224.47 million), down 3% compared to the beginning of the year. Notably, cash and cash equivalents hit VND32.1 billion ($1.36 million), down 92%.

An Cuong aims to achieve revenue of VND5 trillion ($213.17 million) this year, up 11.7%, and post-tax profit of VND668 billion ($28.48 million), up 8.5%.

On the HoSE, the ACG share price stood at VND39,200 ($1.67) per unit at Tuesday's close.

Another wood giant, Truong Thanh Furniture Corporation reported after-tax profit of VND1.8 billion ($76,700), down 90% year-on-year.

The company earned net revenue of VND331 billion ($14.11 million), down 38%.

As of the end of March, the company's assets had hit VND3.05 trillion ($130 million), of which short-term assets were VND1.99 trillion ($84.84 million).

In 2023, Truong Thanh sets a revenue plan of VND2.22 trillion ($94.73 million), up 10.3% compared to 2022 and after-tax profit of VND54 billion ($2.3 million), up 14.86 times.

On the HoSE, the TTF closed at VND4,680 ($0.2) on Tuesday.

Duc Thanh Wood Processing JSC recorded net revenue of VND60 billion ($2.55 million), down 44%, and after-tax profit of VND7.5 billion ($319,800), down 63%.

As of March 31, 2023, the company's total assets had stood at VND393 billion ($16.75 million), of which cash and cash equivalents were VND13.6 billion ($579,800), down 30% compared to the beginning of the year.

Duc Thanh is listed on the HoSE as GDT, which closed at VND29,650 ($1.26) on Tuesday.

In 2023, the company aims at a revenue of VND520 billion ($22.17 million) and post-tax profit of VND83 billion ($3.54 million), up 30% and up 20% respectively.

In the first three months of 2023, the export of wood and wood products reached $2.88 billion, down 28.3% compared to the same period in 2022, according to the General Department of Vietnam Customs. In which, the export turnover of wooden furniture only reached $1.87 billion, down 38.5% year-on-year.

Do Xuan Lap, chairman of Vietnam Timber & Forest Products Association said that due to the sharp decline in global purchasing power, the world economy faced difficulties and challenges, leading to a sharp decrease in the number of orders for the wood industry compared to the same period in 2022.

According to Lap, the U.S, the main export market for the wood industry, saw a sharp decline that directly affected the overall export results.

He said, from 2022, many businesses have searched for customers in new markets like Japan, China and South Korea to offset the decline from the main markets.

"In the second quarter, the wood industry's orders are expected to drop more sharply, in the third and fourth quarters, the market will improve due to the beginning of the commodity season. We expect this year's wood export turnover will be the same level as last year," he added.

Comments (0)
  • Read More
Vietnam data market charms foreign players: property firms

Vietnam data market charms foreign players: property firms

A host of foreign companies are looking to invest in data centers in Vietnam given its substantial growth potential while the market is still dominated by local telecommunication firms, says property service provider Jones Lang LaSalle (JLL).

Infrastructure - Tue, May 14, 2024 | 11:26 am GMT+7

LG’s chemicals arm records modest 2023 profits in Vietnam

LG’s chemicals arm records modest 2023 profits in Vietnam

LG Chem, Ltd, the chemicals arm of South Korean chaebol LG, reported modest profits from its subsidiaries in Vietnam in 2023, according to the firm’s consolidated financial statements.

Companies - Tue, May 14, 2024 | 11:11 am GMT+7

Vietnam needs to modify FDI incentives to stay competitive amid global minimum tax application: expert

Vietnam needs to modify FDI incentives to stay competitive amid global minimum tax application: expert

Vietnam’s policymakers need to consider changes to foreign direct investment incentives to keep the country competitive when it implements Global Minimum Tax rules, says Prof. Nguyen Mai, chairman of the Vietnam’s Association of Foreign Invested Enterprises (VAFIE).

Opinion - Tue, May 14, 2024 | 9:37 am GMT+7

Malaysia pledges to boost energy connectivity

Malaysia pledges to boost energy connectivity

Malaysia commits to cooperating with its ASEAN counterparts to push forward regional initiatives such as the ASEAN Power Grid, which is aimed at fortifying energy connectivity and security throughout the region, the country's Deputy Prime Minister Fadillah Yusof said on Monday.

Southeast Asia - Tue, May 14, 2024 | 8:49 am GMT+7

Japan supports Indonesia to build high-speed rail line in capital

Japan supports Indonesia to build high-speed rail line in capital

The Japanese government announced on Monday that it will provide a loan of approximately JPY140.7 billion ($900 million) to construct a high-speed rail line in Jakarta, Indonesia.

Southeast Asia - Tue, May 14, 2024 | 8:44 am GMT+7

Singaporean PM submits resignation

Singaporean PM submits resignation

Singaporean Prime Minister Lee Hsien Loong on Monday submitted his resignation to President Tharman Shanmugaratnam, saying he and his government will resign on Wednesday.

Southeast Asia - Tue, May 14, 2024 | 8:09 am GMT+7

Singapore’s robot startups eye global market

Singapore’s robot startups eye global market

From autonomous floor cleaning to robotic arms in warehouses, Singapore-based robotics startups are expanding their production and research capacity to tap into Asian markets and beyond, targeting companies eager to address labour shortages.

Southeast Asia - Tue, May 14, 2024 | 8:03 am GMT+7

Thai tourist buses allowed to enter Malaysia

Thai tourist buses allowed to enter Malaysia

Buses from Thailand are allowed to enter Malaysia to bring in tourists, provided they apply for temporary permits from the Land Public Transport Agency (APAD) in advance, said Malaysian Minister of Transport Anthony Loke.

Southeast Asia - Tue, May 14, 2024 | 8:00 am GMT+7

HCMC to add 80 locations for public bike rental

HCMC to add 80 locations for public bike rental

An additional 80 public bike rental stations will be opened in District 1 and District 4 to serve locals and tourists in Ho Chi Minh City.

Travel - Mon, May 13, 2024 | 10:19 pm GMT+7

Mysterious 'floating' lake discovered in central Vietnam

Mysterious 'floating' lake discovered in central Vietnam

A mysterious lake has been discovered in Thung Cave within the World’s Natural Heritage Phong Nha-Ke Bang National Park, in the central province of Quang Binh.

Travel - Mon, May 13, 2024 | 10:17 pm GMT+7

Vietnam ranks second in world cryptocurrency ownership rankings

Vietnam ranks second in world cryptocurrency ownership rankings

Vietnam ranks second in the world of cryptocurrency ownership, with 21.2% of the population adopting crypto, shows data from the Crypto payment gateway Triple-A.

Southeast Asia - Mon, May 13, 2024 | 10:12 pm GMT+7

Largest made-in-Vietnam bulk carrier launched

Largest made-in-Vietnam bulk carrier launched

The largest-ever made-in-Vietnam bulk carrier was launched by Nam Trieu Shipbuilding Co Ltd in the northern port city of Hai Phong on Saturday.

Southeast Asia - Mon, May 13, 2024 | 10:10 pm GMT+7

Vietnam condotel market ineffective, past its boom: consultant

Vietnam condotel market ineffective, past its boom: consultant

Condotel projects in Vietnam have been ineffective in general because developers promised attractive profits without thorough consideration of all relevant factors, says Mauro Gasparotti, director of Savills Hotel Asia Pacific.

Real Estate - Mon, May 13, 2024 | 10:08 pm GMT+7

Planning differences hinder Novaland real estate projects in southern Vietnam: provincial authorities

Planning differences hinder Novaland real estate projects in southern Vietnam: provincial authorities

Differences between master plan and subdivision plans have caused many difficulties facing real estate major Novaland’s Aqua City project in Dong Nai, provincial authorities say.

Real Estate - Mon, May 13, 2024 | 5:16 pm GMT+7

Public Bank Vietnam earns post-tax profit $17 mln in 2023, down 5.6%

Public Bank Vietnam earns post-tax profit $17 mln in 2023, down 5.6%

Public Bank Vietnam Limited, a wholly-owned subsidiary of Malaysia’s Public Bank Berhad, earned a post-tax profit of VND436.5 billion ($17.2 million) in 2023, down 5.6% year-on-year, according to its financial statement.

Banking - Mon, May 13, 2024 | 5:06 pm GMT+7

Private lender Eximbank, telecom giant Viettel ink five-year cooperation pact

Private lender Eximbank, telecom giant Viettel ink five-year cooperation pact

Vietnamese private lender Eximbank will provide banking products and services to military-run telecom giant Viettel, its employees and customers under a five-year (2024-2028) agreement signed recently by both sides.

Banking - Mon, May 13, 2024 | 4:45 pm GMT+7