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Binh Minh Plastics (BMP VN) – Q1 2026 – Margin Expansion Despite PVC Price Volatility
Summary of Q1 2026 results and outlook of Binh Minh Plastics JSC (BMP VN)
- Net revenue increased 5.4% y/y to VND1,457bn, driven by higher blended selling prices from a greater contribution of PVC fittings (residential) and HDPE (infrastructure), despite modest volume growth of 1.0% y/y. Gross profit margin expanded to 47.2% (+4.5ppt y/y), reflecting low-cost PVC inventory from YE2025, while higher SG&A (+31.6% y/y) to support distributors and reinforce positioning resulted in net profit rising 5.9% y/y to VND304bn, with net margin at 20.9%.
- PVC price volatility has prompted price adjustments by BMP to protect margins, while the elevated cost environment supports market share gains for leading players. PVC prices rose 60% in March following the escalation of the Middle East conflict. In response, BMP increased selling prices by ~15% for PVC & PPR (from April 4) and 30% for HDPE (from March 21). Smaller manufacturers competing on price face greater constraints in raising prices without impacting demand, thus losing share to larger players like BMP & NTP. This dynamic highlights BMP’s deliberate use of ethylene-based PVC resin (oil-derived), which, despite higher costs versus carbide-based alternatives (coal-based, via the acetylene route), ensures consistent quality and avoids health concerns, reinforcing its premium pricing power.
- Strong economic growth supports demand despite higher selling prices, reinforcing BMP’s ability to sustain both volume and profitability. Under our base case of a near-term reopening of the Strait of Hormuz, FY2026 GDP growth is projected at 7.0%, supporting resilient demand and allowing BMP, as a price setter, to pass through costs without materially affecting volumes.
- Beyond near-term pricing dynamics, BMP continues to strengthen its long-term growth platform. In rural/peri-urban markets, the company is expanding PVC/PPR sales through individual housing demand and a broader agricultural product portfolio. In urban areas, BMP is selectively increasing penetration into residential projects, while HDPE products are only selectively sold due to long receivables and lower margins. Operationally, the company strengthens its operations through warehouse expansion, production optimization, supplier diversification, and brand reinforcement programs.
- For the remaining 9M/2026, net revenue is forecasted to be driven by the higher selling prices and sales volume. Margin is expected to peak in Q2, soften in Q3 as higher-cost PVC flows through, and recover in Q4 as input prices ease while selling prices remain at the recently adjusted levels.
Interested in BMP? Click here to read more of our previous analysis on BMP’s quarterly earnings.
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Photo image credit: Binh Minh Plastics
