What's new in Hanoi Plastics when being a part of An Phat Holdings?

In November 2018, An Phat Holdings – Vietnamese leading multidisciplinary plastic group officially acquired Hanoi Plastics JSC (stock code: NHH). Moving from government-owned to private ownership, NHH entered a new development stage with many major changes, in which, two business lines focused on investing were cars – motorbikes and electricity – electronic.

Will transfer the model to the Corporation?

An Phat Holdings (APH) is planning to restructure and move NHH into a model of a multi-member corporation, including well-known companies of APH in supporting industries. This is considered a bold step of An Phat Holdings when investing in NHH. NHH’s strength is still best known for manufacturing components for the car – motorbike industry with a series of well-known customers such as Honda, Toyota, Piaggio, SYM,… Nowadays, with the M&A from An Phat Holdings, it is certain that NHH’s business will be expanded.

Test bảng

Currently, the website of NHH is publicizing its member companies. They are An Trung Industries, Viexim and Vietnam Pattern Manufacture and Precision Mechanical Company Limited. In particular, An Trung Industries is a well-known company in the field of electrical and electronic supply. Appearing in the market since the end of 2018, An Trung Industries made a strong impression when it became a vendor for global FDI enterprises such as Samsung (Korea), Brother (Japan). Viexim is a company specializing in manufacturing plastic products of NHH located in Hung Yen. The other member of NHH is Vietnam Pattern Manufacture and Precision Mechanical Company Limited, specializing in the field of manufacturing all kinds of molds and specialized equipment for technology and manufacturing of plastic products for industry. According to this source, NHH will have plans to merge VinFast- An Phat Bioplastics Auto Part Limited Company (VAPA), a joint venture producing cars and motorbikes components between An Phat Holdings and VinFast into their system.

Thus, looking at the list of member companies, it is quite clear to affirm that NHH’s product strategy will focus on two key points: car – motorbike and electricity – electronics. They are considered as two difficult departments of industry due to large investment requirements, high technology, strong R&D activity and especially continuous innovation. Since November 2018, NHH has been restructured, expanded investments, and increased its charter capital from VND 65 billion to VND 168 billion. Next, in August 2019, NHH continued to increase its charter capital to VND 344 billion. Thus, in less than 9 months, the scale of NHH’s charter capital has increased by 5.3 times.

Along with raising capital, calling for new capital, investment activities of NHH have also been strengthened in order to put the total force into supporting industries. The first focus of NHH will be An Trung Industries – a quite new name in the supporting industry in Vietnam but possessing significant capacity when continuously signing contracts to become suppliers for many large manufacturers in the world. In addition to producing 9 million plastic accessories/ month, NHH is also operating compostable product line such as knives, spoons and forks at An Trung Industries factory to export to the US and Latin America. According to statistics, the demand for knives, spoons and forks in the world will increase sharply in the upcoming time because the policy of banning the use of disposable plastic is spreading strongly around the world, especially in Europe and the United States,… This will be a great opportunity for An Trung Industries.

The second strategy of NHH is merging VAPA. After investing in An Trung Industries, in June 2019, NHH approved a deposit and received a transfer of 50% of charter capital at VinFast- An Phat Bioplastics Auto Part Limited Company from An Phat Holdings. Financial statements of NHH said that NHH had deposited VND 104 billion to prepare for this transfer. When put into operation, VAPA is capable of providing plastic components for about 250,000 cars and 500,000 motorcycles per year. It is expected that by early 2020, VAPA will be merged into NHH.

Regarding to Vietnam Pattern Manufacture and Precision Mechanical Company Limited (VMC), NHH aims to turn VMC into the largest scale mold manufacturing company in Vietnam, raising NHH’s position to a plastic injection molding corporation serving the supporting industry, which are having great opportunities.

Another key of NHH is improving the production capacity of Viexim, bringing the total output of NHH and Viexim to 11,000 tons in this year, an increase of 1,000 tons compared to 2018. At the same time, Viexim will be synchronously invested in the system to meet the increasing demands of customers in 2020.

At its factory located in Sai Dong Industrial Zone, Hanoi, NHH invested in a new system of injection molding machines and molds to improve production capacity.

Waiting for a positive future…

With the series of strong investment moves, it is not difficult to believe in a positive future of NHH. At the Annual General Meeting of Shareholders in 2019, NHH set a business plan to grow again with VND 1,130 billion in revenue and VND 67 billion in profit after tax, respectively increasing by 9.8% and 20% compared to 2018. This target is considered to be “3 steps forward” compared to the previous “one step back” of NHH when accepting the initial decline in profits to invest in large projects, waiting for positive results.

The most success of NHH last year was having a large number of customers. Many of them were long-term partners. Due to the trust in the quality of NHH services, these customers expanded their orders, signed a contract to supply new services. In 2018, NHH cooperated greatly with Toyota to make 30 automotive components. By 2019, this number increased of 14 more. Thus, in just one year, NHH was trusted by Toyota to order car door details, increasing the impressive localization rate.

Recently, NHH has officially won a contract to supply components for Honda’s automotive manufacturing segment. Previously, since 1996, NHH also supplied components for Honda’s motorcycle manufacturing activities. NHH is currently developing 9 automotive plastic parts, starting to participate in Honda’s localization program.

Now, NHH is cooperating with VinFast to produce electric cars and motorbikes “made-in-Vietnam”.

After continuously signing contracts with Samsung and Brother, NHH aims to focus strongly on electric – electronics segment and expand the supply of components, from simple plastic components to complex and high-tech ones. Leaders of NHH recently revealed that they would invest in an additional coating line to serve mainly for car, motorbike, electric – electronics products.

With the series of restructuring and investment activities, it can be seen that the clear direction of NHH is to become the plastic injection molding corporation, the leader of APH’s supporting industry.

Source: CafeF

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