The AGM has also approved a plan to issue stock dividends with the amount of 1.5 million shares, equivalent to a ratio dividend of 10%.
On the morning of April 21, Crystal Plastic Manufacturing and Technology Joint Stock Company (stock code: PLP) held the Annual General Meeting of Shareholders 2018 .
Game from plastic additives to artificial marble
It is known that the company has been operating for 10 years in the field of manufacturing and exporting rock powder, CaCO3 ultrafine stone powder and plastic filler master filler master batch with Large scale, in 2018, Crystal Resin will invest in a new production line to take advantage of exploited stone to create new products, one of which is Marble.
Sharing at the meeting, Mr. Mai Thanh Phuong – Chairman of the Board of Directors said that currently Crystal Plastic products are all using high quality CaCO3 stone. Mining at Thung Hung quarry – Nghe An (grade A rock). In fact, the quarrying process also produces lower quality rocks (type 1: 3 or B, C stones).
Up to now, due to the lack of demand, the company has sold this waste rock but the price is low, so it only covers production costs. Investment in a Marble production line using stones from A to B and C will take advantage of the waste rock source, which accounts for about 50% of the current quarry. In addition, the company will also invest in a production line for stone powder used for animal feed and a production line for shrimp / shrimp meal (which is spread on shrimp ponds to reduce alum and desalination) for consumption. out of this waste rock.
According to Mr. Mai Thanh Phuong, currently in Vietnam, there are only 3 enterprises producing artificial Marble and the competition depends on the cost of raw materials. The advantage of Crystal is that the closed production chain from quarry to product and taking advantage of available raw materials from quarrying will increase the company’s revenue, profit and profit margin.
It is known that the stone production line is being selected between China and Taiwan, and the cutting line is Italian. According to Mr. Phuong, about 36 months is able to recover the line investment.
Issuing shares to double the charter capital
To implement the new investment plan, in 2018, Crystal will issue 15 million shares to existing shareholders (equivalent to 100%) at the price. VND 12,000 / share. This offering price is lower than the book value per share of PLP on December 31, 2017 at VND 13,575 / share and the average closing price of PLP shares in 100 trading sessions (from November 9 / 2017 – April 9, 2018) was VND 21,999 / share.
180 billion earned from this issuance will be used to invest in doubling the production capacity of Nghe An branch and Hai Phong factory, investing in production lines. Producing artificial paving stones and supplementing working capital.
According to the report of the Board of Directors, the company is manufacturing based on 4 fine powder grinding lines in Hai Phong with a total capacity of 5,980 tons / month. After moving to Nghe An branch, Pha Le Plastic is able to maintain 4 lines operating 24/24, thereby increasing the total capacity of all 4 lines to 7,200 tons / month.
The AGM has also approved a plan to issue stock dividends with the amount of 1.5 million shares, equivalent to a dividend rate of 10%. Expected issuance time in 2018, after getting approval from State Securities Commission.
Profit plan increases by 18%
In 2017, Crystal Plastic’s revenue increased strongly, reaching VND 314 billion – an increase of 145% compared to 2016, of which revenue from plastic resin segment reached VND 268 billion. copper, 2.5 times the previous year. Profit after tax reached VND 51.7 billion – 7 times the previous year.
The board of directors of the company said that the sharp increase in revenue in 2016 and 2017 was because Crystal Plastic started operating the factory in Hai Phong. Plastic master filler master batch is the main revenue product.
However, the company also faced some difficulties in the past year such as rising oil prices, which caused input material prices to increase, transportation costs to increase … In addition, due to New machines are put into operation, production workers do not have much experience, so the high production rate of faults and high wastage increase costs.
Based on the favorable factors – difficulties and market fluctuations, the Board of Directors submitted a production and business plan for 2018 with a net revenue of VND 420 billion – increased by 34% and profit after tax of VND 61 billion – an increase of 18% compared to 2017. The expected dividend rate is 20%.
The 2017 financial report showed that Crystal Plastic’s short-term debt doubled. The management of the company said that the increase in short-term debt due to the company implemented a policy of deferred payment for expansion of the market. This policy actually helped Crystal to grow strongly in revenue, but the capital appropriation requires the company to have strong financial reserves to continue this policy. Increasing capital through issuing shares is one of the measures to increase the financial potential of this company.