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Binh Minh Plastics (BMP VN) – Q4 2025 – Record Profits, Strong Volume Growth Despite Cost Normalization
Summary of FY 2025 results and outlook of Binh Minh Plastics JSC (BMP VN)
- Net revenue reached VND5,510bn (+19.4% y/y), driven by a 19.8% increase in sales volume as Vietnam’s broader economic activities and construction sector strengthened. BMP sold ~93,500 tons (PVC: ~90%; HDPE: ~5%; PPR: ~4%; others 1%). Gross profit margin rose to 46.1% (vs. 43.1% in 2024) on a 12.6% drop in PVC input costs and 16.7% lower depreciation. Net profit grew 24.0% y/y to VND1,229bn, setting an annual record-high margin of 22.3%.
- BMP’s strong growth has been driven by its strategic push into provincial markets rather than major urban centers such as Ho Chi Minh City (HCMC). As housing prices in core cities continue to rise, demand has increasingly shifted toward more affordable provincial and peri-urban areas, where housing development is dominated by individual home construction. Supported by Vietnam’s strong macroeconomic momentum and ongoing urbanization, this trend aligns closely with BMP’s core customer base and is effectively captured through its extensive distribution network spanning all Southern provinces.
- Global PVC prices likely bottomed in late 2025 and are expected to gradually normalize, following China’s decision to abolish the 13% VAT rebate on PVC exports from April 2026. Given China’s dominant role in global supply, this policy should help reduce excess supply and place upward pressure on PVC prices, implying higher input costs for BMP from 2026 onward. Over the longer term, PVC prices are expected to trend up modestly as global demand improves.
- BMP’s dual growth strategy – consolidating its core residential business while expanding into infrastructure and agriculture – will continue to drive volume growth. In PVC and PPR, BMP strengthens its market leadership through targeted marketing and its Singapore Green Building Council (SGBC) Leader certification, which supports premium pricing. Meanwhile, it will expand its HDPE product portfolio to capture infrastructure-related demand, albeit at lower margins due to stronger buyer bargaining power in this segment. Accordingly, revenue and net profit are expected to continue rising over the coming years, while margin will normalize as PVC input prices recover and HDPE’s volume contribution increases.
- For FY2026, revenue is expected to be mainly driven by the increase in sales volume. The modest margin compression reflects higher PVC input costs and a greater contribution from lower-margin HDPE products, although the bottom-line earnings remain robust.
Interested in BMP? Click here to read more of our previous analysis on BMP’s quarterly earnings.
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