Plastic firms report earnings despite economic slump
By Tran Thu - The Saigon Times Daily
HCMC – Though the property market and many other sectors are struggling with the current economic slump, large numbers of listed plastic companies have reported hefty first-half earnings.
|A worker monitors a plastic packaging line at a local fi rm. Many listed plastic companies have reported hefty earnings in the year’s fi rst half - Photo: Thu Nguyet|
A report by the parent company of Binh Minh Plastic JSC shows the subsidiary in January-June earned VND163.7 billion in after-tax profit, up nearly 38% year-on-year. The after-tax profit of the company in the second quarter also rose 26.5% from the year-ago period as its input costs were lower as explained by the firm.
According to the Vietnam Plastics Association, Binh Minh and Tien Phong plastic companies now are the two major firms in the construction plastics industry, with Binh Minh holding around 50% market share in the country’s south and about 30% countrywide.
Similarly, a financial report by Vegetable Oil Package JSC indicates the firm also earned a profit of VND23.8 billion in the first six months, a year-on-year increase of some 60%.
Meanwhile, the company fetched VND166.4 billion in net sales, up by over VND22 billion from the same period last year. Thanks to the widening gap between the shrinking lending rates and rising prices and sales volumes, sales and profits of the business went up 16% and 64% respectively against last year.
Rang Dong Plastics, which specializes in producing PVC and packaging for animal and fish feed, also netted VND456.6 billion in sales, up by VND37 billion from 2011, while its after-tax profit amounted to VND12.3 billion, far exceeding the VND10.8 billion recorded in the year-ago period.
Bien Hoa Package JSC reaped VND32.9 billion in after-tax profit, a pickup of around 35% year-on-year, with its sales increasing by more than 30% against 2011. The reason is its production output surged while its borrowing costs tumbled and management fees were lower than in the previous year.
Tan Dai Hung and Tan Tien Plastics companies reported profits for the year’s first half as well.