From a business operating only in ty le keo bong da truc tiep field of thin monolayer film, An Phat Holdings (APH) has over ty le keo bong da truc tiep past two decades clinched an interdisciplinary ecosystem staffed by more than 5,000 employees at 15 member companies across Vietnam and branches worldwide. APH is making great strides to fulfill its goal of becoming ty le keo bong da truc tiep biggest bioplastics group in Southeast Asia.
Making great strides after establishing Holdings
Formerly known as a small thin monolayer film company founded in 2002, An Phat Holdings has quickly become ty le keo bong da truc tiep largest thin monolayer film manufacturer in Southeast Asia and a leading bioplastics group with a closed business ecosystem. This is ty le keo bong da truc tiep story of a company that dares to take bold steps to revolutionize itself.
Currently, APH has expanded its business scope to a wide range of operations and manufacturing: Compostable materials and finished products; Packaging; Engineering plastics and SPC flooring; Raw materials and chemicals for plastics industry; Precision engineering and molding; Industrial real estate. APH has made its presence felt with 15 member companies in Vietnam and branches in ty le keo bong da truc tiep United States, Singapore, South Korea and France.
APH also directly owns two listed companies: Hanoi Plastics Joint Stock Company (Ticker symbol: NHH) and An Phat Bioplastics Joint Stock Company (Ticker symbol: AAA), and indirectly owns shares of 10 other companies through ty le keo bong da truc tiep two companies listed above.
ty le keo bong da truc tiep year 2017 is considered as ty le keo bong da truc tiep first milestone for APH’s spectacular growth when An Phat Holdings was officially established, marking its transformation into ty le keo bong da truc tiep holding company model and its position as ty le keo bong da truc tiep leading manufacturer of thin monolayer film in Southeast Asia. Three years later, ty le keo bong da truc tiep company’s charter capital has soared to nearly US$63 million. APH has had more than 10 new member companies under its umbrella, carried out a host of large-scale projects both at home and abroad, and achieved impressive growth.
According to its consolidated business results report, APH’s sales increased significantly from US$106 million in 2017 to US$405 million in 2019, four times as much, generating a compound annual growth rate (CAGR) of 96%. ty le keo bong da truc tiep Corporation’s owners’ equity in 2019 reached US$173 million, 104% higher than in 2017, while its total assets rose to almost US$426 million, nearly double that in 2017.
During 2017-2019, APH’s net profit posted a compound annual growth rate of 131%, and its net profit in 2019 reached US$30 million, five times higher as compared to 2017. Its ROE rose from 7.0-7.2% in 2017 and 2018 to 20.4% in 2019, indicating ty le keo bong da truc tiep efficiency of APH’s capital utilization. By Quarter II-2020, APH’s products have made their way to more than 60 countries worldwide.
Together with packaging as ty le keo bong da truc tiep main business line, since its establishment of ty le keo bong da truc tiep holding structure, APH has extended to new sectors including: Supporting industries, industrial real estate and compostable materials and finished products.
As regards supporting industries, APH has focused on high technology development with ty le keo bong da truc tiep ultimate goal of participating in ty le keo bong da truc tiep global supply chain. During 2018-2019, ty le keo bong da truc tiep enterprise invested in three major projects: acquiring a famous auto and motorbike spare parts maker; cooperating with one Vietnamese largest group to establish a factory producing auto parts; and increasing investment scale for electronic components manufacturing plants.
APH is also among a few businesses in Vietnam to venture into precision engineering and molding. Currently, ty le keo bong da truc tiep company owns a factory which is projected to become Vietnam’s leading molding manufacturer. APH’s portfolio of many famed multinational customers such as Toyota, Samsung, Honda, LG, Panasonic etc. has proved how effective ty le keo bong da truc tiep company is in this field. Also, APH has been selected by ty le keo bong da truc tiep Ministry of Industry and Trade and ty le keo bong da truc tiep Authority of Hai Duong province, and Samsung Vietnam as a leading business for developing supporting industries in Hai Duong (80km from ty le keo bong da truc tiep capital of Vietnam).
Albeit a newcomer to industrial real estate, after only more than one year, APH has attained a position in Top 10 most beneficial industrial real estate businesses in Vietnam in 2019. An Phat Complex and Quoc Tuan-An Binh in Hai Duong, both developed by APH, are located in ty le keo bong da truc tiep key economic triangle of Northern Vietnam. APH is developing these two industrial parks in its green ecosystems providing one-stop services. Currently, industrial real estate contributes approximately 11% to ty le keo bong da truc tiep corporation’s gross profit.
About compostable materials and finished products, APH is determined this will become its long-term growth driving force that contributes a large proportion to its revenue. APH also announced its plan to build ty le keo bong da truc tiep first green materials manufacturing plant in Vietnam.
Compostable materials and finished products – APH’s strategic plan
Environment-friendly products are projected to account for 20-30% of ty le keo bong da truc tiep total plastic consumption globally in ty le keo bong da truc tiep upcoming three to five years. Many countries have come up with policies to promote green consumption, especially in ty le keo bong da truc tiep US and EU. In Vietnam, at ty le keo bong da truc tiep G-20 Summit on June 29, 2020, Prime Minister Nguyen Xuan Phuc said by 2025 Vietnam aims to end ty le keo bong da truc tiep use of disposable plastics. ty le keo bong da truc tiep development of compostable materials and finished products should therefore be ty le keo bong da truc tiep strategic transition expected to make a breakthrough for APH.
“APH will follow ty le keo bong da truc tiep common trend of our era,” said APH Chairman, “focusing on green products which will account for ty le keo bong da truc tiep majority of ty le keo bong da truc tiep Corporation’s revenue and profit in ty le keo bong da truc tiep future.”
However, to achieve its goal that compostable products will account for 40-50% in packaging revenue, ty le keo bong da truc tiep company faces three difficulties regarding: production technology, material resources and product costs.
Regarding production technology, in June 2019, APH acquired a 51% stake in Top Leaf Company, a South Korean firm which is one of a few companies in ty le keo bong da truc tiep world owning patent for producing compostable materials, and changed it into AnKor Bioplastics. This means APH is now Vietnam’s first enterprise to hold ty le keo bong da truc tiep patent for manufacturing compostable materials besides BASF, Novamont, NatureWorks etc. At present, APH’s compostable products meet strict international standards such as TUV OK Compost HOME, TUV OK Compost INDUSTRIAL and are present in more than 20 countries worldwide.
After having ty le keo bong da truc tiep patent for manufacturing compostable materials, APH has also announced its plan to build ty le keo bong da truc tiep first compostable material manufacturing plant in Vietnam. Construction for this 20,000-ton plant will start early next year and slated to be completed by ty le keo bong da truc tiep end of 2022.
According to APH, thanks to ty le keo bong da truc tiep initiative in material resources, it is expected that in ty le keo bong da truc tiep next 3-5 years, ty le keo bong da truc tiep profit from compostable bags can increase from 10% currently to about 50% in packaging revenue. Therefore, it can significantly improve APH’s profit margin, as ty le keo bong da truc tiep gross margin of this product line is about 20% compared to ty le keo bong da truc tiep average 14% of conventional packaging, saving production costs about 30% for subsidiaries while ty le keo bong da truc tiep parent company still enjoys a gross profit margin of 25-30% of this project.
Listing Vietnam’s leading plastics group on HoSE
In June 2020, APH successfully auctioned 4.3 million shares, equivalent to 3% of ty le keo bong da truc tiep stake, to mobilize capital for ty le keo bong da truc tiep construction of AnBio compostable material manufacturing plant.
ty le keo bong da truc tiep initial public offering (IPO) attracted 109 investors who placed orders for 20.76 million shares, ty le keo bong da truc tiep registered shares are nearly 5 times as many as ty le keo bong da truc tiep selling volume. ty le keo bong da truc tiep average successful bidding price was over US$2 per share, twice as much as ty le keo bong da truc tiep starting price. After ty le keo bong da truc tiep IPO of 3% of its stake, APH gained more than US$9 million and was valued at almost US$281 million.
Accordingly, ty le keo bong da truc tiep IPO offered most of its shares to strategic and long-term financial investors. In 2020, APH plans to issue 20 million shares, equivalent to 14% of ty le keo bong da truc tiep outstanding shares. Currently, APH is working with nearly ten foreign financial and strategic investors from South Korea, Japan and Germany and some other multinational institutions.
As ty le keo bong da truc tiep total capital needed for ty le keo bong da truc tiep PBAT compostable material manufacturing plant is over US$70 million, APH plans to call for 50% capital from owners’ equity and 50% from borrowed capital. In 2020, ty le keo bong da truc tiep company seeks to raise about 80% of ty le keo bong da truc tiep needed capital while ty le keo bong da truc tiep remaining 20% will be raised next year mainly from commercial loans or straight bonds.
APH’s long-term goal is to list all member companies on ty le keo bong da truc tiep stock exchange.
On July 28, An Phat Holdings was officially listed on ty le keo bong da truc tiep Ho Chi Minh City Stock Exchange (HoSE) with ticker symbol as APH. HoSE is ty le keo bong da truc tiep Vietnam’s most prestigious stock exchange. This chronicles another milestone for APH’s development, which opens up more opportunities for mutual cooperation and asserts ty le keo bong da truc tiep position of Southeast Asia’s biggest bioplastics group in ty le keo bong da truc tiep coming time.
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