VinaCapital becomes major shareholder of Phuoc Hoa Rubber

This year, Phuoc Hoa Rubber JSC sets a revenue target of VND2.46 trillion, pre-tax profit of VND1.15 billion, up by 46 per cent and 115 per cent year-on-year, respectively. — Photo tinnhanhchungkhoan.vn

VinaCapital Fund Management Company and its flagship fund Viet Nam Opportunity Fund (VOF) have purchased 50,000 and 60,000 shares of Phuoc Hoa Rubber JSC (PHR), respectively, news site ndh.vn reported on Tuesday.

After the acquisition, VinaCapital and VOF have raised their ownership in PHR to 4.66 per cent and 0.13 per cent, respectively.

Thus, VinaCapital, one of Viet Nam's leading investment company group with US$1.8 billion in assets under management, now owns a total of 6.77 million PHR shares, equivalent to 5.01 per cent of the company’s capital, becoming a major shareholder.

The transaction took place on April 8.

In the first quarter this year, Phuoc Hoa Rubber reported consumption of rubber reached more than 4,900 tonnes, equaling 74 per cent of the same period last year and fulfilling 12.4 per cent of the yearly plan.

Average selling price of rubber reached VND34.6 million ($1,500) per tonne, up 7.8 per cent over the same period last year.

Total revenue in Q1 was VND334.7 billion, up 18 per cent against 2019 and fulfilling 13.6 per cent of the whole year’s plan. Pre-tax profit touched VND172.5 billion, up by 158 per cent and fulfilling 15 per cent of the whole year’s plan.

In the second quarter, the company expects an average selling price of VND32 million per tonne and consumption of 3,620 tonnes, both lower than Q1.

However, revenue is expected to be VND480 billion, higher than Q1, of which revenue from rubber trading is VND116 billion. Pre-tax profit is estimated at VND350 billion, completing 30.5 per cent of the year’s plan.

This year, Phuoc Hoa sets a revenue target of VND2.46 trillion, pre-tax profit of VND1.15 billion, up by 46 per cent and 115 per cent year-on-year, respectively.

The Board of Directors said that no matter when the COVID-19 pandemic ends, the company will still fulfill its pre-tax profit plan for 2020, but the revenue target will only be fulfilled 84 per cent if the disease ends in the fourth quarter. — VNS