Analyst Pin-board BMP – More Pricing Pressures in 2H but Margin Could be Stable
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· Selling volume declined -12% YoY in 1H2022, caused by the slow construction activities and public investment disbursement. Consumption in 2H could be stable as in 1H. · The stronger rises in selling prices compared to input prices has widened profit margin in 1H. · PVC resin price has started to fall quickly since mid-June. Therefore, from Q3, it is highly possible that selling prices will be adjusted down to stimulate demand and maintain competitiveness. · Holistically, 2022 revenue and PAT could reach VND 5,305 billion (+16,5%) and VND 461 billion (+115%). Our forecast of 2022 has been revised up to reflect the recent deep fall in PVC resin price. The new target price is VND 70,300/share, 7% higher than the previous one. With an expected cash dividend of VND 2,800/share, the upside potential is 24%, based on the closing price of July 27, 2022. |
Binh Minh Plastics Joint Stock Company is a Vietnam-based company engaged in the manufacture of plastic products. The Company manufactures and trades plastic pipes and pipe fittings, such as uPVC (Unplasticized Polyvinyl Chloride) pipes and HDPE (High Density Polyethylene) pipes. Other products include plastic sprayers, helmets and soldering sticks, as well as adhesives, rubber washers and molds for plastic product manufacturing. Beside manufacturing plastic products, it installs plumbing systems and provides interior decorating services. As of December 31, 2012, the Company had one wholly owned subsidiary named North Binh Minh Plastics Limited Company, which is engaged in the manufacture and sale of consumer and industrial products from plastic and rubber.
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