Paper, packaging firms see bright prospects ahead

Saturday, May 15, 2021 07:49

Inside a bag factory of An Phat Bioplastics JSC. An Phat Bioplastics JSC (AAA) targets to achieve consolidated revenue of VND9.5 trillion (US$412.8 million), up 28 per cent. — Photo the courtesy of An Phat Bioplastics JSC

Paper and packaging enterprises are optimistic about their prospects this year thanks to Viet Nam's stable business situation.

An Phat Bioplastics JSC (AAA) aims to achieve consolidated revenue of VND9.5 trillion (US$412.8 million), up 28 per cent. Post-tax profit is expected at VND550 billion, nearly double that of 2020.

Dong Hai Joint Stock Company of Bentre (DHC) aims to achieve VND3.5 trillion in revenue and VND399 billion in post-tax profit.

At the end of 2020, DHC had very impressive business results when it recorded a profit after tax 2.15 times higher than the previous year, reaching nearly VND392 billion.

In addition, Thuan Duc JSC (TDP) has set a revenue target of VND1.97 trillion and a post-tax profit goal of VND88 billion.

TDP is one of the leading enterprises in manufacturing environmentally friendly polypropylene (PP plastic) packaging products in Viet Nam, with revenue and profit increasing in recent years.

The enterprise has a product line of shopping bags, mainly for export, accounting for half of the company's annual revenue, besides animal feed packaging product line and packaging agricultural products and the fertiliser packaging line.

The enterprise's 1A factory and 1B factory have a combined capacity of 25,000 tonnes of seeds per year and 8,000 tonnes of packages per year.

Its No 2 factory has an export capacity of 150 million packages per year, while its No 3 factory has a capacity of 8,000 tonnes of packages per year.

Q1 results

An Phat Bioplastics JSC (AAA) announced its Q1 revenue at VND2.28 trillion, up 45.04 per cent over the same period last year, an increase of VND708 billion. Post-tax profit reached VND89 billion, up 41.27 per cent from the same period last year.

Dong Hai Joint Stock Company of Bentre (DHC) had net revenue of VND1 trillion in Q1, up 51.7 per cent year-on-year. This was also the first time DHC hit the milestone of VND1 trillion in quarterly revenue.

DHC reported a post-tax profit of nearly VND173 billion, up 138 per cent over the same period last year, equivalent to earnings per share of VND3,027.

Thuan Duc JSC (TDP) achieved Q1 net revenue of VND467 billion, up 52 per cent ​​compared to the first quarter of 2020. Its post-tax profit reached more than VND30 billion, more than two times higher than that of the first quarter of 2020.

TDP said in the first quarter of 2021, the domestic business market had stable and high revenue growth and domestic packaging sales of animal feed and agricultural products grew. The export market of supermarket shopping bags has recovered quite well from the same period of 2020.

According to SSI Securities Joint Stock Company (SSI), paper packaging consumption in Viet Nam is expected to increase by 12 per cent in 2021-2025 thanks to continuing urbanisation.

SSI forecasts the urbanisation rate, the proportion of the urban population to the total population, in the country will hit 40 per cent in 2024 compared to 37 per cent in 2019. The paper packaging segment also benefits from the rapid growth of Viet Nam's e-commerce.

Analysts forecast that the growth of the plastic packaging segment in 2021 in Viet Nam will depend on spending on food and non-alcoholic beverages.

As for the Asian market, according to analysts, the demand for packaging products will continue to grow and be the main growth driver for the packaging segment in Viet Nam when it comes to exports.

Although packaging is an auxiliary industry for many manufacturing industries, it plays an important role and contributes significantly to the development of the economy. — VNS

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