It is for this reason that many Vietnamese investors are now very much looking forward to the development of rubber stocks on the stock market. Below is a list of 5 largest listed rubber companies in Vietnam compiled by VietnamCredit.
Formerly known as a tire factory of the US army, Da Nang Rubber Joint Stock Company, internationally known as DRC, has had a continuous development process for more than 35 years. The company became a joint stock company model in 2006 and issued shares on the Ho Chi Minh City Stock Exchange in 2007 with stock code DRC. With its flexibility and creativity, DRC has created a competitive advantage in the market, becoming the leading enterprise in the truck tire market in Vietnam. DRC is investing in a new factory to produce steel radial truck tires with a capacity of 600,000 tires/year.
In 2022, DRC recorded net revenue and EAT of VND 4,899 billion (+12% y/y) and VND 308 billion (+6% y/y), respectively.
The company’s export revenue remains strong. Specifically, export revenue in Q4/22 remained healthy at USD 30.1 million (-15% q/q, +8% y/y). For the whole year, DRC’s export revenue reached nearly $125 million, growing by 25% y/y, the highest in the company’s history.
The company’s gross profit margin continued to decline, from 16.9% in Q3.22 to 16.1% in Q4.22, mainly due to pressure from two factors: (1) less positive product structure (decreasing contribution in products with high profit margin such as bias tires, bicycles and motorbikes); and (2) prices of synthetic rubber and black coal increased by about 4-5% q/q.
However, operating expenses accounted for only about 6.0% of revenue, down from 8.6% in Q3.22, supported by a continuing drop in logistics costs.
At the same time, the VND/USD exchange rate weakening by 1.0% in Q4.22 also had a positive net impact on DRC’s business (as shared in the Jan.2023 update). During the period, the company recognized net profit from exchange rate difference. In general, DRC’s EBT margin improved to 9.4% in Q4.22.
Phuoc Hoa Rubber Joint Stock Company (PHURUCO) was established in 1982 by the General Department of Rubber of Vietnam. PHURUCO is a state-owned enterprise under the Vietnam Rubber Industry Group.
The company is known as one of the largest companies in the rubber industry in Vietnam, located in a rubber-growing area with plantations stretching across the Southeast, 65 km from Ho Chi Minh City and very convenient in terms of traffic.
So far, PHURUCO has achieved outstanding profits from the strategy of diversifying products, exploiting and processing rubber latex, rubber wood and raw latex in the petroleum industry.
Besides, PHURUCO also expands its activities in the field of construction, including construction and repair of bridges and roads, traffic works, civil and industrial works, real estate business and financial investment.
In 2023, Phuoc Hoa Rubber aims to exploit 11,200 tons of latex in Vietnam, 12,200 tons in Cambodia, and purchase 13,000 tons.
In 2022, Phuoc Hoa Rubber recorded revenue of VND 1,708.58 billion, down 12.2% over the same period and profit after tax recorded VND 927.19 billion, up 80.6% over the same period last year.
Dong Phu Rubber Joint Stock Company (Doruco), formerly Thuan Loi plantation of Michelin Company – France, was established in June 1927. On May 21, 1981, Dong Phu Rubber Company – a state-owned enterprise under the General Department of Rubber of Vietnam was officially established. On December 28, 2006, the company was transformed into Dong Phu Rubber Joint Stock Company with initial charter capital of VND 400,000,000,000. The company’s shares were listed on the Ho Chi Minh City Stock Exchange on November 30, 2007, stock code DPR.
In 2022, the company’s production and business activities faced many difficulties due to the influence of the world situation, broken supply chains, fluctuations in the world economy, and high inflation.
The company’s total revenue in 2022 only reached 93.84% of the plan, mainly from the unrealized revenue of compensation for recovery of rubber land of VND 118.6 billion. Due to the influence of the macro economy, local socio-economic development projects have not been implemented as planned.
Also from the above objective factors, the parent company’s profit before tax in 2022 only reached 77.01% of the plan. In particular, profit from rubber production and business reached VND 27,102 billion, financial profit reached VND 43,176 billion; profit from liquidation of rubber trees, wood processing and other activities reached VND 180,594 billion. Consolidated pre-tax profit in 2022 reached more than VND 350 billion, down about VND 227 billion compared to the same period last year.
In 2022, Doruco also invested capital in Bac Dong Phu Industrial Park Joint Stock Company to increase charter capital in the form of buying additional shares to invest in the development of Bac Dong Phu and Nam Dong Phu Industrial Park phase II. About 5.1 million shares were bought with a value of VND 102 billion.
In 2023, this company plans to achieve revenue of VND 819.6 billion, down 4% over the same period. The profit before and after tax is expected to reach more than VND 275 and more than VND 220 billion, respectively.
Doruco sets a target of more than 4,893ha of orchards; self-exploited rubber output is expected to reach 9,528 tons. The volume of procurement – processing – consumption is expected to be 3,000 tons, 13,500 tons and 13,000 tons, respectively.
Tan Bien Rubber Joint Stock Company was established on December 20, 1985 by the merger between two rubber companies: Bac Tay Ninh Rubber Company (under Tay Ninh Provincial People’s Committee) and Thien Ngon Rubber Company (under the General Department of Rubber of Vietnam).
The main functions and tasks of the company are reclamation, new planting, exploitation, processing, and trading of rubber.
To meet the increasing demands of customers, Tan Bien Rubber has successfully built and applied a quality management system according to ISO 9001:2008; and has been granted the quality mark for latex and latex products.
In 2022, the total revenue of Tan Bien Rubber reached VND 937 billion – an increase of nearly VND 45 billion compared to the previous year. Gross profit decreased and other profit also dropped sharply while operating expenses fluctuated insignificantly compared to the same period last year. Along with that, corporate income tax expense also nearly doubled in 2021 (at VND 60.5 billion), causing RTB’s net profit to decrease 27% YoY to VND 247.5 billion.
Total assets of the company as of December 31, 2022 was VND 2,750 billion, of which VND 270 billion was cash equivalents and short-term deposits; inventory was VND 211 billion.
RTB’s liabilities decreased by nearly 25% compared to the beginning of the year to VND 548 billion, of which more than VND 300 billion was financial loans.
Ba Ria Rubber Company is a state-owned enterprise. During nearly 20 years of operation, the company has always strived to fulfill its mission, and has been honored to be awarded with medals and noble achievements.
Despite facing many difficulties, in 2022, Ba Ria Rubber still successfully completed the assigned tasks. Indicators such as output, revenue, profit, budget payment all met and exceeded the plan assigned by VRG.
Accordingly, the total exploitation output in 2022 reached 9,056 tons, 0.23% higher than the plan. Its total revenue was VND 532 billion; pre-tax profit reached VND 165 billion, exceeding 6.9% of the plan.
It is estimated that the rubber production of the company in the second quarter of 2023 will reach 930 tons, consumption volume is 1,500 tons. In the first 6 months of the year, the company estimates that revenue and profit after tax will reach nearly VND 370 billion and VND 88 billion, respectively.
Henry Tran – VietnamCredit