Ngoc Nghia Plastic to leave stock market later this month

Thursday, Jul 06, 2023 16:21

A PTE production line of Ngoc Nghia Plastic. After leaving the market, the company sets an ambitious profit after tax of 9 times higher than last year. — Photo

The Ha Noi Stock Exchange (HNX) has just announced the cancellation of trading registration for all 81.57 million shares of Ngoc Nghia Industry - Service - Trading (NNG) on UpCOM starting from July 25.

The reason is that Ngoc Nghia Plastics annulled the status of a public company according to regulations, after it was completely acquired by Indorama Ventures, a Thai multi-industry group.

At the beginning of last year, the Dutch branch of the group, Indorama Netherlands BV, made a public offer to buy 100 per cent of Ngoc Nghia Plastics's shares and currently holds 97.82 per cent of its capital.

Ngoc Nghia Plastic is a plastic packaging supplier for many big and popular manufacturers such as Unilever, Coca-Cola, Pepsi, and Vinamilk.

However, the rising intense competition in the PET packaging industry with the participation of many big names in the country has caused manufacturers to diversify suppliers.

To avoid the dependence on the packaging segment, during 2008-09, Ngoc Nghia Plastic began to expand its business activities in new segments, such as food. The ambition, nevertheless, has not worked well as the company's profits are flat.

By 2018, Ngoc Nghia Plastic had divested from a number of projects to return to the core PET packaging segment.

After leaving the market, the company set up an ambitious business plan in 2023 with a revenue target of more than VND2.46 trillion, a gain of 7 per cent, and profit after tax of VND143 billion, nearly 9 times higher than last year's performance.

In the first quarter of 2023, the company posted a net revenue of VND490 billion, an increase of 13.7 per cent year-on-year. Its profit after tax was more than VND33 billion, 4.7 times higher than that of the same period last year.

With the postive results, it has completed 20 per cent of this year's revenue plan and 23 per cent of its profit plan.

On the market, NNG shares were traded at VND15,000 on Wednesday. — VNS

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