Possessing a solid business foundation and many outstanding advantages, An Phat Bioplastics (Ticker symbol: AAA) is not at ty le keo ma lai xi a market price that businesses and investors expected. So what is ty le keo ma lai xi a intrinsic value of AAA when its revenue and profit targets are recording positive growth?
Evaluated as ty le keo ma lai xi a key business of An Phat Holdings (Ticker symbol: APH), AAA is at a lower market price than APH’s member companies and other enterprises in ty le keo ma lai xi a plastic industry.
However, investors are expecting that AAA will soon regain its position and make a breakthrough in 2021. In a recent interview, Mr. Nguyen Le Trung – General Director of An Phat Bioplastics JSC cum Vice Chairman of An Phat Holdings gave a piece of his mind.
Sir, in 2021, AAA sets a profit target of VND 550 billion, ty le keo ma lai xi a highest profit in ty le keo ma lai xi a business’s history. Until present, is this plan is feasible?
It is expected that by ty le keo ma lai xi a end of ty le keo ma lai xi a second quarter, we will complete nearly 40% of ty le keo ma lai xi a profit plan. However, AAA’s revenue and profit will increase sharply after An Phat 1 Industrial Park officially comes into operation and starts commercial exploitation. Recently, after increasing capital by more than VND 1,000 billion (~$ 42.5 million), financial expenses have been rebalanced. Therefore, we are confident that we can complete ty le keo ma lai xi a set profit plan.
What factors help AAA expect a breakthrough with ty le keo ma lai xi a industrial real estate segment in ty le keo ma lai xi a second half of 2021, sir?
Regarding ty le keo ma lai xi a industrial real estate segment, newly released statistical reports of many market research companies showed that ty le keo ma lai xi a rental price of real estate in industrial zones in ty le keo ma lai xi a North is increasing. However, Hai Duong province is still having a lot of advantages in investment attraction. In particular, Vietnam is studying and implementing ty le keo ma lai xi a “vaccination passport” measure, which is a good opportunity for foreign investors to promote investment in Vietnam.
Currently, An Phat 1 Industrial Park of AAA is speeding up to complete site clearance to start construction in July. Currently, we are also connecting and working with many investors to seek business cooperation opportunities.
Besides industrial real estate, will industrial packaging and green products bring positive-growth to AAA, Sir?
In short term, ty le keo ma lai xi a industrial packaging segment will make more contribution to ty le keo ma lai xi a company’s packaging revenue structure this year when ty le keo ma lai xi a factories of AAA member company – An Vinh Packaging operate at full capacity.
In terms of green products, we have a broader vision in this area and are seeing many positive changes. In fact, ty le keo ma lai xi a value of orders of compostable products continued to grow strongly in ty le keo ma lai xi a first months of 2021, ty le keo ma lai xi a export volume of green products in ty le keo ma lai xi a first quarter of 2021 doubled compared to ty le keo ma lai xi a same period in 2020.
ty le keo ma lai xi a main markets for these products such as Europe, Japan, ty le keo ma lai xi a United States… also recorded positive growth in ty le keo ma lai xi a last 2 months when ty le keo ma lai xi a epidemic was gradually brought under control. In particular, ty le keo ma lai xi a successful registration of trademark protection for AnEco’s compostable products in ty le keo ma lai xi a United States has opened up many opportunities to trade AAA’s green products in this market.
AAA is considered to be ty le keo ma lai xi a most beneficial from ty le keo ma lai xi a PBAT Green Material Factory project that An Phat Holdings is implementing. Could you please be more specific?
Currently, we are urgently preparing to start construction of Southeast Asia’s largest green material (PBAT) manufacturing plant and at ty le keo ma lai xi a stage of completing ty le keo ma lai xi a licensing procedures. With a capacity of 30,000 tons per year, ty le keo ma lai xi a factory will meet ty le keo ma lai xi a demand for input materials for AAA instead of importing as before. This helps AAA save 40 – 50% on raw material costs.
Expected to consume 70% of ty le keo ma lai xi a raw materials produced in APH’s project, AAA will be ty le keo ma lai xi a most beneficial from this project thanks to improving profit margins as well as taking initiative in raw materials, making it easier to reach out to big customers.
AAA is also building factory number 8, specializing in producing compostable bags. This plant is expected to have a capacity of 9,600 tons per year, increasing ty le keo ma lai xi a company’s production output by 9%.
On ty le keo ma lai xi a stock market, AAA shares are at ty le keo ma lai xi a price range of 15,000 – 16,000 VND per share. However, investors are expecting a better price for AAA shares. What is your opinion, Sir?
With ty le keo ma lai xi a advantages and potentials mentioned above, I think ty le keo ma lai xi a value of AAA shares on ty le keo ma lai xi a stock exchange is reflecting 50% of ty le keo ma lai xi a company’s real value. Realizing that there is still a lot of growth potential for AAA, An Phat Holdings will continue to buy more shares and increase its ownership in AAA. I believe that ty le keo ma lai xi a market will soon reflect ty le keo ma lai xi a intrinsic value of ty le keo ma lai xi a company.
Thank you very much!
