Company Quarterly Earnings Update – NTP VN – 2021 H1

Summary of the 2021 H1 results of Tien Phong Plastic JSC (NTP VN)

H1/2021 results highlights

  • Revenue was VND2,400bn (+9.7% y/y), while the total volume of sales was 47,984 tons, an increase of 7.3% y/y. The average selling price increased 3.4% y/y as NTP passed part of their high input costs into the selling prices.
  • The gross profit margin was 27.5%, down from 31.6% in H1/2020, primarily due to a hike in raw materials in H1/2021.Net profit was VND270bn, +32.2% y/y. Notably, net profit in H1/2020 was down 28.9% y/y due to a provision for doubtful short-term receivables which making a low base for this year’s growth.
  • Financial position at the end of H1/2021: The company’s cash and cash equivalent accounted for 16.5% total assets. Leverage ratios gradually improved with a D/E ratio of 0.32x, compared to 0.37x at the end of FY2020, and 0.58x at the end of FY2019.


The current COVID-19 resurgence in Vietnam has negatively impacted domestic construction material demand as several key cities and provinces, mainly in Southern Vietnam, have entered lockdown. Currently, all NTP’s three factories (Hai Phong, Nghe An, Binh Duong) have arranged accommodation for workers to live on-site and can carry out production as normal. NTP’s sales are concentrated in the North which has not yet seen any negative impacts from the pandemic. With the current strong measures being imposed and the vaccination process speeding up, we expect that the lockdown measures will be eased from September 2021.

Looking beyond the COVID-19 pandemic, we maintain our positive outlook on the demand for plastic pipes in Vietnam thanks to 1) Vietnam’s continuing trend of urbanization, 2) the rising recognized need for upgrading the water supply and wastewater treatment systems in Vietnam.

  • For 2021, revenue is projected to increase by 10.3% y/y to VND5,104bn. The sales volume in 2021 is projected at 95,500 tons (+5.0%y/y). The gross margin is forecast to decline to 31.9% (compared to 33.1% in 2020) mainly due to high material costs. Net profit will reach VND503bn, +12.5% y/y.
  • For 2022, revenue is projected to be VND5,326bn (+4.3% y/y). The sales volume in 2022 is forecast to be 123,600 tons (+10% y/y). The gross margin will increase to 33.4% (from 31.9% in 2021) thanks to lower material costs. Net profit will reach VND543bn, +10.2% y/y.

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