chevrons

Back to Previous Page

Company Quarterly Earnings Update – NTP VN – 2018 Q4

Summary of the 2018 results of Tien Phong Plastic JSC (NTP VN) 

2018 results: highlights
  • Net revenue grew by 2.0% yoy, sales volume reached 89,717 tons (+3.0% yoy). Volume and sales mix remain the same compared to last year. NTP’s gross margin fell to 29.4% from 33.2% as a result of higher material costs. This is partially offset by a reduction in Selling and Administration Expense (SG&A) of net sales from 21.7% last year to 19.5%.
  • Net financial expenses increased by 24.7% yoy mainly from higher interest expense due to higher short-term borrowings to finance the company’s working capital. The D/E ratio was 0.9x, up from 0.8x by the end of 2017. All in all, net profit amounted to VND 332bn (-32.7% yoy), 3.1% higher than our forecast.
  • By the end of the year, NTP had VND 83bn of cash and cash equivalents, accounting for 1.7% of total assets.
Outlook
  • Our longer-term view on the Vietnamese market for plastic construction materials doesn’t change from the last report and remains optimistic thanks to the robust housing demand from the continuing urbanization of the population, and the need for infrastructure development and industrial construction.
  • NTP’s net profit margin was at the lowest level in five years as the company is pursuing an aggressive pricing strategy to squeeze the profitability of new market entrants and to kick them out of the plastic pipe sector. NTP’s major competitor, HSG, is facing many difficulties in their core business. Hence, we expect the competition will weaken from this year onwards and NTP’s net margin should recover to a reasonable level for a leading plastic pipe producer in Vietnam. We forecast the net profit’s CAGR for the 2019 – 2023 period to amount to 12.7% p.a.
Recommendation

Company ratings and target prices are accessible for clients only.

If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.

Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.

 

Featured image credit: nhuatienphong.vn

Related News & Insights
Find out more navigation_button
news

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 […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Dat Xanh Group JSC (DXG VN) Vietnam real estate market recorded moderate new supply, as many projects approved in late 2024 and early this year needed more time to complete launch sales procedures. Hanoi continued to lead new supply, while HCMC remained constrained by legal hurdles. Most […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Dat Xanh Real Estate Services (DXS VN) The real estate market recorded moderate new supply, as many projects approved in late 2024 and early this year needed more time to complete launch sales procedures. Hanoi continued to lead new supply, while HCMC remained constrained by legal hurdles. […]

Read Newsarrow
Find out more navigation_button