DRC – Expensive input costs remains an obstacle
- In Q4 2022, Danang Rubber Jsc. (HSX: DRC) posted net sales of VND1,114 bn (or USD47 mn; -17.6% QoQ; -16.4% YoY), dragged down by lower domestic tire consumption and Q4 2021 high-based performance. Higher input costs and lower selling expense/sales ratio produced a net profit of VND82 bn (or USD 3 mn, +6.2% QoQ; -6.3% YoY).
- Backed by 9M2022 strong performance, DRC had a 2022 rosy business result with revenue and net profit of VND4,899 bn (+12% YoY) and VND308 bn (+6% YoY), respectively. The key growth driver was high double-digit sales growth of exports (+25% YoY).
- In the context of expensive raw material costs and weak tire consumption in the domestic market, we predict that the 2023 performance will grow in the single-digit rate, predicting revenue and net profit of VND5,233 bn (or USD223 mn, +6.8% YoY) and VND331 bn (or USD14 mn, +7% YoY), respectively.
Danang Rubber Joint Stock Company is a Vietnam-based company engaged in the rubber processing sector. It manufactures, trades, imports and exports rubber tires, inner tubes and other deprived products for automobiles, motorbikes and bicycles. It also manufactures other rubber products for mechanical uses, as well as trades materials and supplies for the rubber industry. The Company is involved in the offering of installation services of machinery and equipment for rubber processing activities.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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