A raincoat production line at Rang Dong Plastic Company. — Photo aomuarangdong.com

HA NOI (Biz Hub) — HCM City-based Rang Dong Plastic Joint Stock Company (RDP) has announced that its profits had tripled after tax in 2015, and it was planning to issue more shares for new investments.

RDP chairman Ho Duc Lam said it reached the revenue of VND1.13 trillion (US$50.4 million) in 2015, an increase of 4.6 per cent over 2014, and added that the company earned a net profit about VND70 billion ($3.1 million), more than three times the VND23 billion ($1.025 million) it had earned as profit in 2014.

Lam said that last year the plastic industry, including his business which produces different kinds of plastic products in the city, benefitted from the lower input costs.

The attractive development of the plastic market in Viet Nam, Lam saw acquisitions of domestic plastic companies by FDI companies last year. There were FDI enterprises which wanted to buy more than 20 per cent stake in his company, but he had no plans of selling, Lam said.

For their next phase of development, the RDP's board of directors approved the issuing of another 4.7 million shares to existing shareholders to increase its charter capital in the first six months of this year. The shares worth VND20,000 (89 cents) each will be released to the existing shareholders of the company with investment purposes to implement the relocation plan of the RDP headquarters to the Tan Do-Long An Industrial Park in the neighbouring Long An Province from District 11, HCM City, where it is located presently. The total investment for the new infrastructure is estimated at VND490 billion ($21.85 million) to be completed by 2017.

In the investment structure, equity accounted for 33 per cent, and mobilising loans accounted for 32 per cent, while 34.7 per cent was raised from bonds.

According to the company, it will sign co-operation agreements with Japanese partners in March, as it was committed to completing the factory in Long An this October to manufacture products for them. The new Rang Dong Plastic Factory, spanning 17 ha, will serve the growing demand of plastic products which were mostly PVC products and plastic packages.

In 2016, the company planned a revenue growth of 15 per cent and a profit of 10 per cent. It will further cut costs and increase the profit by reducing the transport fee, applying modern management systems, and enhancing inventory management and cost management progress.

This year, the RDP also expected an increase of 15 per cent in the export market compared to an increase between 10 per cent and 15 per cent in 2015. Besides the southern market, the northern market currently accounted for 20 per cent of the total market. The RDP was also focussing on garment producers as potential customers.

The RDP shares yesterday ended at VND29,200 ($1.3) each on HCM Stock Exchange. — VNS