In the third quarter, all segments of AAA (production, trading, and industrial parks) grew over the same period, especially the manufacturing segment with a 47% growth in profit before tax to VND 75 billion, contributing 88 % total profit before tax.
Recently, An Phat Bioplastics JSC (AAA) announced positive business results of the third quarter, with net revenue of VND 2,364 billion, up 8%; Profit before tax was VND 86 billion, up 49% compared to the same period last year.
Accumulated 9 months, AAA gained VND 7,406 billion revenue and VND 520 billion profit before tax, equivalent to an increase of 28% and 174% over the same period. Compared to the whole-year business plan of 2019, AAA currently fulfills 74% of revenue plan and 85% of profit after tax plan.
The prospect for strong growth because of the trend about using compostable products
According to Stanley ‘Brothers Securities Company (SBSI), using compostable products is a trend of the world. Many European countries are shifting to using environmentally friendly products.
Data from the Institute of Bioplastics and Biocomposites showed that, in 2018, global demand for self-decomposed plastics will reach 2.1 million tons and will reach 4.3 million tons by 2023, equivalent to CAGR level of 15% in 5 years.
In Vietnam, the Government is also pushing people to reduce and move towards not using disposable plastic products, replacing them with environmentally friendly products… This is an opportunity for AAA, because of being a pioneer in researching and capable of producing compostable products.
Reportedly, compostable products currently account for 10% of AAA’s product structure and all self-decomposed materials must be imported. Because the production cost is 2-3 times higher than the normal production cost, which means that it is only profitable for large-scale enterprises like AAA. SBSI expects that the volume of decomposition products will increase sharply in the upcoming time when An Phat Holdings (APH) puts its PBAT production line into operation.
The PBAT project, after being put into operation, will help cut down about 30% of AAA’s production costs compared to the present. In addition, AAA will be proactive in sourcing raw materials, improving inventory turnover and increasing gross profit margin of production.
Can exceed the plan of the General Meeting of Shareholders
SBSI forecasts that AAA’s compostable bag segment will reach over 1,000 tons/month and contribute mainly to the growth of business results in the coming years.
Meanwhile, in the plastic resin trade, SBSI expects that AAA will achieve more than VND 3,600 billion in revenue and VND 50 billion in profit after tax. Because An Thanh is currently one of the largest plastic import enterprise in Vietnam and has the advantage of signing a contract to cover products of Binh Son refinery.
Based on the above grounds, SBSI Securities Company forecasts that AAA will complete VND 9,521 billion in revenue and VND 526 billion in profit after tax (compared to VND 510 billion in profit after tax plan) in 2019 and reach VND 10,411 billion in revenue and VND 629 billion in profit after tax, growing by 9.1% and 19.5%.
Source: CafeF
