Crystal Plastic Manufacturing and Technology JSC (stock code: PLP) has released its financial statements for the second quarter of 2018 and the first six months of the year (not yet reviewed). with soaring revenue and profits.
Specifically, in the second quarter of 2018, Crystal Plastic’s net sales reached 129 billion dong, up 50% over the same period last year. Therefore, despite the increase in oil price in the past one year, pushing up the price of input plastic resins and causing gross profit margin to decline by nearly 3%, the company still recorded a profit after tax of 13.8 billion. VND – increased by more than 25% compared to Quarter 2/2017.
Accumulated in the first 6 months, Crystal Plastic achieved VND 245 billion in net revenue and VND 31 billion in after-tax profit, up 69% and 25% compared to 6 In the first month of 2017, 58% of the revenue plan and 51% of the year’s profit plan were completed. 6 months’ EPS is 2,072 dong.
According to Crystal Plastic’s explanation, Filler Masterbatch is still the main product contributing more than 215 billion dong revenue in the first 6 months, up nearly 80% YoY. period. Crystal plastic products are consumed 45% in the domestic market and 55% exported with 3 main export markets are Brazil, China and Dubai.
The increase in plastic resin sales comes from the fact that 4 Filler Masterbatch lines in Hai Phong have been operating with maximum capacity after just over 1 year of operation, earlier than planned. initially more than 1 year. The maximizing capacity of the main product line has helped the production process be stable, reduce downtime and reduce the rate of defective products, save the costs incurred.
At the same time, Crystal Plastic has also completed the transfer of 4 stone crushing lines in Hai Phong to Nghe An to create space for two new generation Filler lines. installed. The company is contacting suppliers to import stone production lines to Nghe An factory to increase capacity, expected to supplement revenue and profit for CaCO3 stone products in the last 6 months.
In a recent report, FPTS Securities evaluated positively with PLP thanks to the competitive advantage of owning CaCO3 quarry, so it was proactive in sourcing raw stone powder with high quality. good quality. Increasing the plant’s capacity by 50% also creates the advantage and is the main growth driver for the company.
Agreeing with FPTS about prospects of Crystal Plastic, VPBS Securities mentioned the risk of dilution of stocks. Due to an ambitious expansion plan, PLP plans to double its capital through issuing shares to existing shareholders. The investment in new production lines and the launch of new products is not expected to stimulate profit growth in the first years, so the risk of dilution for stocks is quite significant. However, because the nominal PE valuation is still low, VPBS believes that even after dilution, the valuation is not expensive.