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Binh Minh Plastics (BMP VN) – Q1 2025 – Net Profit Jumps 51% on PVC Price Drops
Summary of Q1 2025 results and outlook of Binh Minh Plastic JSC (BMP VN)
- BMP reported net revenue of VND1,383bn in Q1/2025, up 37.9% y/y, driven primarily by a 39.6% y/y increase in sales volume. This strong growth was largely due to a shift in the timing of promotional campaigns (held in Q1 this year vs. Q3 in 2024). Gross profit margin (GPM) improved slightly to 42.7% (from 42.4% in Q1/2024), benefiting from a 6.2% drop in PVC input —attributable to China’s sluggish real estate market and lower oil prices—and reduced depreciation expenses. SG&A expenses rose at a slower pace than revenue, contributing to an expansion in net margin to 20.7%, with net profit closing at VND287bn (+51.1% y/y).
- The Vietnam’s construction pipe industry remains largely shielded from U.S. trade tensions. As a domestically oriented sector, it is less exposed to export risks. Furthermore, the tariff rate for Vietnam is expected to be much lower than the sweeping 46% announced on April 2, supported by (1) the recent easing U.S.-China tensions and Vietnam’s proactive negotiating efforts with the Trump administration which might soften tariff rates, and (2) a pending U.S. federal appeals court case reviewing the constitutionality and enforceability of the tariffs.
- PVC input price remains favorable for the plastic pipe production. China’s continued sluggish real estate recovery exacerbates global PVC oversupply, while soft oil prices further relieve PVC input costs. We expect BMP to partially share these cost benefits with its distributors while still maintaining its market leader position.
- BMP is pursuing a dual growth strategy focused on strengthening its core residential segment while expanding into infrastructure and agriculture markets. Government efforts to accelerate public investment and rapid urbanization are expected to drive demand for BMP’s PVC and PPR products, while the unique Singapore Green Building Council (SGBC) Leader Certificate fuels its premium pricing strategy. BMP also plans to further expand its HDPE and agricultural products with a more competitive pricing strategy to capture growth in infrastructure and rural markets.
- For the last 9M/2025, sales volume is projected to ease from Q1’s level but still support full-year net revenue. This growth is underpinned by increased public investment and early signs of recovery in southern Vietnam’s real estate market.
Interested in BMP? Click here to read more of our previous analysis on BMP’s quarterly earnings.
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Photo image credit: https://www.binhminhplastic.com.vn/
