Smart transition
Main product of Crystal Plastic formerly CaCO3 stone in the form of raw materials directly exploited from quarries in Thung Hung, Nghe An. Taking advantage of raw materials, in 2014, PLP decided to invest in the production line of CaCO3 additives (Filler masterbatch).
After the PLP Filler factory came into operation, the company’s revenue and profit structure has changed significantly with a large proportion coming from CaCO3 additives.
In the first 6 months of 2018, Crystal Plastic achieved VND 245 billion in revenue and VND 31 billion in after-tax profit, up 69% and 25% over the same period, fulfilled 58% of the revenue plan and 51% of the year’s profit plan.
In PLP’s revenue structure, Filler Masterbatch is still the main product contributing more than 215 billion dong, up nearly 80% over the same period. Crystal plastic products are consumed 45% in the domestic market and 55% exported with 3 main export markets are Brazil, China and Dubai.
Company leaders said that plastic resin sales increased sharply due to the fact that 4 Filler Masterbatch lines in Hai Phong were operating with maximum capacity after just over 1 year. operate, more than 1 year earlier than the original plan.
The maximum production capacity of the main product line has helped the production process be stable, reduce downtime and reduce the rate of defective goods and parts. save on expenses incurred.
At the same time, Crystal Plastic has also completed the transfer of 4 stone crushing lines in Hai Phong to Nghe An, reducing the cost of super-fine stone powder products and increasing workforce. design yield of both additive granules and ultrafine stone powder; create space for 2 new generation Filler lines to prepare for installation.
The company is contacting the supplier to purchase the stone production line for Nghe An factory to increase its capacity, expected to supplement revenue and profit. for CaCO3 stone products in the last 6 months.
Reson resources for ambitious journey
CaCO3 stone powder is the main raw material in the production of Filler Masterbatch. PLP owns and operates CaCO3 quarry with an area of over 5.24 hectares in Nghe An for a period of 22 years from August 2015.
This is one of the CaCO3 quarries that are rated as the best in the world with a high whiteness of about 97%, and abundant reserves of about 5 million cubic meters, yield exploiting about 200 thousand tons / year.
Owning quarries also helps PLP to better manage product quality from raw materials. Being proactive in sourcing CaCO3 raw materials with good quality helps create a competitive advantage in the export market.
In 2018, PLP plans to achieve VND 420 billion in revenue and VND 61 billion in after-tax profit, increasing by 34% and 18% compared to 2017. By this time , with the results achieved in the first 6 months as well as the aggressive investment of the Company, financial analysts said that the company’s 2-digit growth plan is completely within reach.
CaCO3 additive grain factory will continue to be the main growth driver of PLP, when coming here, the Company will complete the investment to increase the factory’s capacity by 50 % and expand the export market.
In addition to the aforementioned two additive granule production lines, PLP also invested in two acid coating lines for stone powder products in Nghe An. This is an advanced technology that helps increase the efficiency of the additive particle production process, reduce the defect rate and increase the uniformity of the additive grain product.
Besides, the Company is implementing the adjustment of the animal feed grinding line and complete the installation of 02 lines of baits and shrimp powder in order to fully utilize the resources. Available mineral materials.
As planned, PLP will pay dividends of 10% in 2017 and 20% in 2018. With positive semi-annual business results, EPS of the first 6 months of the year PLP votes reached 2,072 dong.
On the stock market, PLP is currently trading with 6.5x PE. This is an attractive valuation compared to businesses in the manufacturing industry of materials and the average PE of the market (15x).
Regarding the development strategy in the future, in exchange with Securities Investment, PLP leaders said that the Company is looking for a strategic partner to provide financial support. and business activities, especially in terms of technology support, output markets, inputs …, with a view to leading the Top 10 largest Filler Materbatch manufacturing enterprises globally and leading international enterprises producing Product originated from CaCO3 based on high technology platform.