An Tien Industries resets business strategy to win Covid-19 challenge

An Tien Industries’ proactive response strategies to Covid-19 pandemic has helped the company overcome the challenges and quickly regain its growth momentum and continue to make profits.


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In the third quarter, HII factories were operating at maximum capacity and production capacity is expected to maintain 10,000 tons per month with plastic additives and CaCO3 until the end of the year.

Regain growth momentum

Mr. Doan Minh Duc, General Director of HII, said that in the economic context affected by Covid-19, HII has taken a series of measures to adapt to the general situation. HII has drastically turned its business axis towards markets that are less affected by epidemics. Currently, the company has grown again and in the third quarter of 2020, the factories are operating at maximum capacity.
On the market, HII is an exporter with a large market that exports to more than 50 countries around the world. HII’s two main products are calcium carbonate powder CaCO3 and plastic additives. In 2020, HII has the first quarter exceeding 16% of the plan, but the second quarter is affected by the pandemic leading to a slowdown in production and business activities. In the first 6 months of the year, the Company recorded consolidated revenue of VND 1,883 billion and consolidated profit after tax of VND 21.8 billion. While Covid-19 has had a huge negative impact on exports, the result of HII in the first 6 months was quite impressive.
Mr. Doan Minh Duc shared that, after a slight decrease in output in April, May and June, HII regained its growth momentum and operated steadily, efficiency increased every month. In particular, in the third quarter, the Company operated similarly to the pre-epidemic period, the factories were operating at maximum capacity.
Moreover, HII continuously improves product quality and cost, gradually improves profit margins and enhances industry segments as well as competitiveness in the market. The rapid and decisive proactive response to the Covid-19 epidemic helped HII quickly regain its growth momentum and continue to operate with profit.

Breakthrough opportunity

In the report released at the beginning of September 2020 by SBSI Securities, the firm gave a positive outlook on the prospects of HII. In addition to the whole export market has stabilized under the new normal mode, due to the decrease in PE and PP resin prices since the beginning of the year, bottomed out in May and strongly recovered in July and August is forecasted to go flat or increase from September to the end of 2020, HII’s revenue is forecasted to reach VND 5,053 billion, far exceeding the 2020 plan, even increasing by 9.1% compared to 2019. Profit after Tax may exceed the plan of VND 60 billion approved by the General Meeting of Shareholders in the beginning of 2020.
HII has a dense shareholder structure, with An Phat Holdings accounted for 63.54% of the capital, the outstanding shares in the market less than 37% of the total charter capital of HII is VND 278 billion. There are not many outstanding shares, but the liquidity of HII is quite stable, especially compared to small-cap stocks in the market.
Looking at the operating background of HII, SBSI quoted Marketandmarkets forecasts that the CaCO3 stone powder and plastic additives market will continue to grow, especially in the Asia-Pacific region, creating opportunities for HII especially in the last months of 2020 and year 2021.
The report said that the plastic industry may have the fastest growth rate in the coming period, leading to a sharp increase in HII’s demand for materials from stone powder. Not only maintaining traditional products, but HII also continuously develops new product lines such as bio materials, bio compound, engineering plastic resins etc.
According to HII’s General Director, from now to the end of the year, the company will maintain production capacity and sell about 10,000 tons of plastic fillers and CaCO3 each month. This is a business segment that brings huge profits for the Company in 2019, and it is still expected to be a positive factor contributing to the efficiency in 2020, as well as in 2021 of HII.

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