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Company Quarterly Earnings Update – BMP VN – Q4/2024
Summary of 2024 results and outlook of Binh Minh Plastic JSC (BMP VN)
- BMP reported net revenue of VND4,616bn in 2024, down 10.5% y/y, while maintaining its premium pricing strategy. Sales volume declined due to slower construction demand recovery in the Southern region and competition from lower-priced rivals, leading to a slight market share loss. In contrast, NTP, the dominant plastic pipe manufacturer in the North, saw a 6.0% y/y increase in sales volume, reflecting regional differences. Despite this, Vietnam’s construction sector showed recovery, with construction steel up 13%, tile demand rising 15%, and cement consumption increasing 2%.
- Net profit came in at VND991bn (-4.8% y/y), a smaller decline than revenue, thanks to an improved net margin of 21.5%. This was driven by a higher gross margin of 43.1% (up from 41.0% in 2023), benefiting from lower PVC costs amid China’s sluggish real estate market and reduced depreciation expenses.
- BMP has implemented key strategic initiatives to reinforce its position as Vietnam’s leading premium plastic pipe manufacturer, setting the stage for long-term growth. In January 2025, after meeting rigorous requirements, BMP secured the Singapore Green Building Council (SGBC) Leader Certificate for its best-selling PVC and PPR products, becoming the only plastic pipes manufacturer in Vietnam to achieve this distinction. This certification underscores BMP’s commitment to non-lead products and high-pressure absorption capabilities, further strengthening its pricing premium over NTP and long-term competitive differentiation. While premium pricing may temporarily impact sales volumes, BMP is expected to regain momentum as market conditions improve, aligning with increased marketing efforts in 2025.
- The construction pipe industry is set for solid growth in 2025, driven by Vietnam’s expanding construction sector. With economic growth at 7.1% in 2024 and a projected 7.4% in 2025, alongside the implementation of the new real estate law, construction activity is expected to accelerate. Additionally, rising infrastructure investments will further support plastic pipe demand, reinforcing BMP’s growth trajectory.
- In 2025, sales volume is projected to be driven by momentum in the construction sector. No significant price fluctuations are expected in H1; however, PVC prices may rise moderately in H2, influenced by Chinese stimulus measures. While higher PVC costs could reduce the gross margin, it is expected to remain strong.
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Photo image credit: https://www.binhminhplastic.com.vn/
