On March 18th, Hanoi Plastics Joint Stock Company (stock ticker: NHH) successfully organized its 2020 Annual Shareholder Meeting at the headquarters, Group 12, Phuc Loi Ward, Long Bien District, Hanoi. NHH’s 2020 target revenue is VND 1,860 billion, its after-tax profit is VND 146 billion, increasing by 51% and 170% respectively compared to 2019, expected to pay 20% dividend.
The Meeting reviewed the business performance in 2019 and approved the 2020 business plan and reports related to its management and operation activities as well.
2019: Consolidated revenue reached 1,233 billion, exceeding 109% of the original plan
The year 2019 marked a significant milestone for NHH when it had 03 additional subsidiaries, including 02 members with 100% ownership by NHH: Vietnam Pattern Manufacture and Precision Mechanical Co.,ltd (VMC), An Trung Industries Co., Ltd (ATI) and 01 joint venture company with 50% capital contribution with Vinfast called VinFast- An Phat Bioplastics Auto Part Limited Company (VAPA). At the end of the year, NHH achieved its consolidated revenue of VND 1,233 billion, exceeding 109% of the original plan, increasing almost over 20% compared to the previous year.
Specifically, the total assets by the end of 2019 reached VND 1,233 billion, NHH’s consolidated annual profit was VND 56.7 billion, exceeding 84% of the set plan. The profit from production and trading activities of remained stable at 12% in 2019, reaching nearly VND 68 billion.
In 2019, NHH constantly expanded its investment scale, in which the investment amounts in NHH, Viexim-Export Import Development Investment Co.,ltd (Viexim), ATI, VMC reached VND 91.4 billion, VND 6.4 billion, VND 210 billion and VND 65.9 billion, respectively. Thus, the total consolidated investment value of NHH was equivalent to 374.7 billion.
In addition, NHH officially acquired its contributed capital at VAPA, equivalent to VND 104 billion, currently owns 50% of capital in this company.
According to Board of Directors’ appraisal, in 2019, NHH’s business performance maintained stable as the previous years. The advantage is that the company still receive and increase purchasing orders from some key partners such as Honda, Toyota, etc, to help stabilize its production and trading activities for an increase in both its revenue and income for employees, as well as expanding its production activities. In particular, this year NHH has attracted some more new customers such as Lear, STM, etc, opening up a lot of extensive cooperation opportunities in manufacturing plastic parts for cars and motorcycles.
A changing world, NHH still plans to increase 170% of after-tax profit in 2020
With these achieved results, in 2020, NHH’s target revenue is VND 1,860 billion (increase by 51% compared to 2019) and its profit after tax is VND 146 billion (increase by 170% compared to 2019). The primary factors contributed to realizing these targets include: forthcoming M&A deals, expanding and well operating its subsidiaries, and continuously supplying products for some big brands like Toyota, Honda, Samsung, Brother, Panasonic, Vinfast, etc.
Particularly, the US-China trade war and the Covid-19 disease outbreak possibly cause the global economic instability but also brings an opportunity for NHH due to the wave of business transferring from China to neighboring countries. Furthermore, Vietnam has many new policies to support its domestic automobile manufacturing enterprises, creating conditions for increasing the localization rate, opening up opportunities for supporting industrial enterprises like NHH.
In terms of mold production, a few of domestic enterprises can manufacture high-tech molds, automobile and motorbike enterprises often have to import high-priced molds from foreign markets, so VMC, a member company of NHH, with qualified products, have a good competitive advantage.
In 2020, with the orientation of Phase 2 investment for VMC, NHH will carry out its manufacturing of Connector – a mold combining other types of electronic circuits, with detailed and complex structures. This is a product with high added value, expected to improve the business results of NHH. Also, NHH aims to build up VMC to become the No. 1 mold producer in Vietnam.
Regarding ATI, the company has officially become a supplier of Samsung and Brother in 2019. Thanks to the positive cooperation of ATI with FDI enterprises, it will definitely open up more growth opportunities for NHH in the year 2020.
Thanks to these advantages, NHH’s Board of Directors set the 2020 growth target increasing to 170% of profit after tax (compared to 2019), reaching VND 146 billion, expected to pay 20% cash dividend for its shareholders.
