As soon as the listing was listed on the HSX, HII and PLP shares of the only two plastic additives companies on the floor received a “warm” welcome from investors, creating waves of price increase in the market. school.
On the floor from mid-June 2017 with the reference price of the first session of VND 11,900 / share, HII shares of An Phat – Yen Bai Plastic and Minerals JSC then increased for eight consecutive sessions to the ceiling, soaring to the price level. VND 24,150 / share, overbought volume was around 2 million shares per session.
Until September 15, HII suddenly gained to the limit with a trading volume of over 762 thousand shares and closed at 35,300 dong / share, up 161% after nearly 3 months of listing.
Market price of HII and PLP since its listing till September 15
“Slower” than HII when it was just listed at the end of August, but it is not so that the attraction of Crystal Plastic Technology and Manufacturing JSC (HOSE: PLP) is weak.
Offering the price of 12,000 dong / share, HII marked the chain of ceiling gain in 10 consecutive sessions, before dropping slightly and recovering the gaining trend in the last 5 sessions.
In September 15, PLP had a time of “matching ceiling” before closing at 28,500 dong / share, up 97% in less than 1 month on the floor. However, PLP’s liquidity was quite modest, averaging only nearly 115,000 shares / session.
The movements in the market raised the question of what makes HII and PLP attractive?
See opportunities in a new and potential market
PLP and HII are the two manufacturing enterprises, providing the main product as an additive resin pellet used as an input material in the plastic industry to change various properties of the base resin or polymer.
Currently, the market for plastic additives is considered to have a lot of potential and room for development. According to the HII additive resin market, the world’s additive resin sales in 2017 is estimated at 10.5 billion USD and is expected to increase to 13.41 billion USD in 2022, achieving growth rate. The average is 5.1% / year.
In particular, China, Europe, North America are currently the strongest consumer markets for plastic resins and Asia Pacific is the fastest growing market.
Demands for plastic additives
Particularly in Vietnam, the raw material for plastic industry is over 5 million tons, however, domestic enterprises only meet 20%, the rest must be imported. With the remaining 80% of land, it is a fertile land for manufacturing enterprises to supply plastic materials and plastic additives.
With the addition of plastic granules, the biggest names in the Vietnamese market include European Plastics, An Phat-Yen Bai (HII) and Crystal Plastics (PLP) and East Asia Plastics. In particular, according to the 2017 survey, European Plastics holds the largest market share with 30%, followed by HII with 12%, PLP and East Asia Plastics hold 8% market share, the rest comes from Other souces.
To intrinsic resources and enterprise advantages
By catching up and entering a nascent market with great development opportunities, both PLP and HII show advantages in production and distribution capacity.
With HII , the Company built a CaCo3 additive resin factory in Yen Bai, which also supplies input materials with stable reserves at quarries for businesses. This helps HII minimize and save costs.
On the other hand, HII currently owns 2 subsidiaries, Lien Tin An Tin Joint Stock Company operating in the field of freight transport, transport support and An Thanh General Production JSC operating in the field of product distribution. plastic beads, wholesale supplies …. As a result, HII’s process is nearly closed from input to shipping and distribution, helping to control operations and manage efficiency.
In terms of output for the product, besides An Phat Plastic and Green Environment JSC (HOSE: AAA) – 51% of HII’s parent company is the consumption partner, the Company also has many other customers such as Mitsubishi, Philips. , Marlex …
Going forward, HII plans to deploy biodegradable grain products – one of the new products in Vietnam but is expected to be the trend of the world in the future. HII sets a target of 30% market share of plastic additives in Vietnam in 2018, reaching the number 1 market.
Recently, HII has brought the project to raise the capacity of CaCO3 Plastic factory to 150,000 tons / year and the project to build CaCO3 stone powder factory with an capacity of 220,000 tons / year of An Phat – Yen Bai has come into operation. Expected movements to boost the Company’s growth momentum.
In 2017, HII targets revenue of VND 1,150 billion and net profit of VND 70 billion. Through 2018, proceed to VND 2,200 billion in revenue and VND 100 billion net profit. EPS growth target of 30%, regular cash dividend of 20-30% per year.
Recently, HII Board of Directors said that in the third quarter of 2017, the Company will reach about VND 300 billion in revenue and VND 20 billion in net profit. So, in 9 months, HII expects 690 billion dong revenue and profit and 54 billion dong net profit, equivalent to 60% and 77% of target.
Besides HII, PLP is also an enterprise that has certain advantages in the industry. PLP currently owns 2 granite quarries in Ninh Thuan, 3 white marble quarries in Nghe An and especially limestone quarries in Thung Hung mountain, Quy Hop, this is considered a strategic asset of the Company. PLP’s factory located in Hai Phong is quite convenient for shipping by sea.
Regarding consumption markets, PLP also aims to expand in the markets of America, Europe, Australia, Asia, especially China, boosting consumption.
Currently, the Company has completed the installation and went into production of four production lines of Filler Masterbatch. It is expected that by the end of 2017, PLP will continue to increase the capacity of 3 Filler Masterbatch production lines to over 9,000 tons / month (2 new lines will start trial run in October 2017 and go into mass production. from the beginning of December 2017).
In 2017, PLP targets net revenue of VND 350 billion and net profit of VND 40 billion, up 161% and 427%; Expected dividend of 10%. Through 2018, the Company aims to achieve a revenue of VND 530 billion, an increase of 51% and a net profit of VND 70 billion, an increase of 75% with a dividend rate of 15%.
By CafeF