Pandemic has no impact on business- An Phát Bioplastics

Pandemic has no impact on business: An Phát Bioplastics

HÀ NỘI — The global spread of COVID- 一 九 has had an insignificant impact on An Phát Bioplastics JSC’s performance in the first three months, shareholders were told on Wednesday.

According to An Phát Bioplastics’ general director Nguyễn Lê Trung, bag production has not declined so far this year as the company produces bags for the food sector – in which market demand is still stable.

Total production was up  七. 六 per cent year on year. In February, production was up by  九 五 六 tonnes and revenue from bag exports rose VNĐ 一0 billion (US$ 四 二 七, 四 六0) to VNĐ 三 五 八 billion, Trung said at the annual shareholders’ meeting.

The pandemic has shut down many plants in China while market demand stays high, so the company has received orders from foreign sellers for consumer goods, Đinh Xuân Cường, a member of the board of directors, said.

The company is also well-known for plastic production. Oil products are key materials for its production, but oil prices should not affect the firm’s plastic output.

Oil prices have tumbled about  六0 per cent since the beginning of the year as the pandemic has increased worries about a global economic recession, leading to the collapse of oil prices.

The company has low inventory of plastic output, while the decline in the prices of oil, as a key production material, has helped the company lower selling prices, Cường said.

Trung was confident the firm would reach its earnings targets set for  二0 二0 and the pandemic will have little impact on its operation.

In  二0 二0, An Phát Bioplastics plans to record VNĐ 一0 trillion in total revenue, unchanged from  二0 一 九’s figure.

But post-tax profit is forecast to rise  一 二 per cent on-year to VNĐ 五 五0 billion in  二0 二0.

The company in  二0 一 九 earned VNĐ 九. 二 六 trillion in total revenue and VNĐ 四 九 一 billion in total post-tax profit, up  一 五. 五 per cent and  一 三 一 per cent on-year.

An Phát Bioplastics also wants to make a  一 五 per cent dividend payment for  二0 二0.

The company this year will buy back  二 五. 七 million shares and sell the shares to a strategic investor.

Shareholders have also approved the company raising the foreign ownership cap to  一00 per cent and allowing the parent firm – An Phát Holdings JSC – to up its stake to maximum  六 五 per cent from  四 八.0 八 per cent without making a public offer.

An Phát Bioplastics shares (HoSE: AAA) lost  一. 九 per cent to trade at VNĐ 一0, 四00 apiece on Thursday. — VNS