AN PHAT PLASTIC (AAA): 2018 CHAIRMAN'S LETTER
Dear esteem Shareholders!
It has been 15 years since the first establishment of An Phat Plastic and Green Environment Joint Stock Company. We have witnessed the great development and milestones in the history of An Phat's production and business:
- The production has reached 8,000 tons of finished products per month, making An Phat become the largest manufacturer and exporter of plastic packaging in Southeast Asia, 100% products are exported. Accordingly, the total output of the whole year was 94,693.5 tons, increased 51.95% compared to the total output of 2016.
- Revenue and profit after tax respectively were estimated at VND 4,076 billion and VND 264 billion. Particularly, revenue increased 90% compared to that of 2016, and exceeded 23.5% of the plan in 2017 assigned by the Annual General Meeting of Shareholders. Moreover, profit after tax increased 85% in comparison with year 2016 as well as exceeding 14.8% of the plan.
- Market capitalization of AAA’s stock on December 31, 2017 reached VND2.767 billion, increased by 119% compared to that at the end of 2016, of which the stock price increased by 49% from 22,000/share as of 31/12/2016 to 33,000/share as of 31/12/2017.
Operation of the No. 6 and No. 7 factories has helped An Phat grow significantly in terms of production and business, rising to the top position in the plastic packaging industry in Southeast Asia; this proved the effectiveness of the investment from the previous financial funding. This success was not only from a great effort from the staffs of the company, but also from much of the trust and confidence of the shareholders to the capacity of An Phat’s Managements. We truly respect and highly appreciate that!
Dear esteem Shareholders,
The past 15 years have been a successful start. We have accumulated production experience, human resources and financial resources, preparing for An Phat a great development in both quantity and quality. "An Phat aims to become a pioneer corporation in the plastic industry in Vietnam, creating great solutions for the domestic market, maintaining and expanding international market share. By extending the production chain, An Phat will increase the value of the sector, enhance the development of the chemistry and plastic industry in Vietnam, and increase the competitiveness of Vietnam's production in the world”.
In order to do so, An Phat's Board of Directors has completed the comprehensive restructuring of capital structure in member companies in 2017 in order to specialize in manufacturing, to step up the sale development, and to increase the research on the application of technical and high technologies to production and business. In particular:
- Divesting partially capital of and listing An Phat Yen Bai Plastics and Minerals Joint Stock Company on the Ho Chi Minh Stock Exchange, with the stock code HII. Also in 2017, An Phat Yen Bai inaugurated a superfine stone powder factory at the headquarters, raising the total capacity of the additive plant to 372,000 tons per year. As the top three company in the plastic resin industry, the HII stock has quadrupled its market capitalization by the end of 2017 after half a year of listing.
- Withdrew capital from Vinh Packaging Joint Stock Company; strengthened the business capacity of An Tin Joint Stock Company by increasing the number of tractors and heavy trucks; strengthened the financial capacity of An Thanh Joint Stock Company to increase the capital turnover, carried out efficiently the commercial business in the core business of An Phat.
- Unified and referred the financial ownership at An Phat Plastic and Environment Green Joint Stock Company in particular and its subsidiaries in general to one entity - An Phat Holdings Joint Stock Company. Utilizing concentrated financial resources, promoting R & D application, seeking new products and business opportunities suitable for the core industry which is the plastic industry, especially the injection molding plastics content high technology, and eco-friendly biodegradable products.
Along with this positive restructuring, An Phat set a target of 2018 that the company will continue to maintain high growth with revenue and profit respectively estimated at VND 6,000 billion and VND 330 billion, increase respectively by 67% and 50% compared to the plan of 2017. An Phat also commits to a dividend payout ratio of 15-20% for shareholders, maintaining the leading position in the plastic packaging industry in Vietnamese security market. The Board of Managements also expect AAA's market capitalization to reach USD180 million soon in 2018 in the context of Vietnam's promising economy and stock market.
PHAM ANH DUONG