Tay Ninh Rubber reports 'huge' profit increase in Q3
Tay Ninh Rubber Joint Stock Company (Taniruco - TRC) has just announced its consolidated financial report for the third quarter of 2024 with recorded net revenue of VND 220.7 billion, an increase of 29% over the same period last year. Gross profit reached VND 69.4 billion, equivalent to a gross profit margin of 31.5%.
In the third quarter of 2024, financial revenue was recorded at VND 3.8 billion, up 538% year-on-year. Other income also doubled to VND 31.8 billion due to increased rubber tree area and liquidation revenue. Meanwhile, financial expenses decreased by 35% to VND 2.4 billion. In addition, business management expenses and sales expenses did not fluctuate much compared to the same period.
After deducting expenses, the company brought in 73.1 billion VND in after-tax profit, 5.8 times higher than the same period.
Accumulated revenue in the first 9 months of the year, TRC brought in 456 billion VND in revenue and 101.3 billion VND in profit after tax, up 31% and 405% respectively compared to the results of the 3rd quarter of 2023.
Tay Ninh Rubber Financial Report.
According to the explanation, the positive business results in the third quarter of 2024 came from the increase in rubber latex selling prices, leading to an increase in profits from the rubber latex exploitation business of both the parent company and its subsidiary - Tay Ninh Siem Reap PTCS Company compared to the same period in 2023.
The driving force behind the increase in rubber prices is the shortage of supply, including prolonged floods in Thailand - the world's largest supplier of natural rubber (accounting for 33% of total output).
In addition, widespread leaf fall disease in many other rubber producing countries is negatively affecting latex production and quality. In addition, the impact of Typhoon Yagi has disrupted the peak harvest season in Vietnam as well as some countries in the region.
In the financial report for the second quarter of 2024, Tay Ninh Rubber also recorded revenue of more than 90 billion VND, an increase of 31% over the same period last year; profit after tax reached 12.7 billion VND, an increase of 81.7% over the same period last year.
The audited report for the first 6 months of Tay Ninh Rubber recorded net revenue from sales and service provision reaching VND235.9 billion, up 34.4% over the same period last year; profit after tax reached VND28.1 billion, 3.6 times higher than the same period last year.
After deducting expenses, the company brought in 73.1 billion VND in after-tax profit, 5.8 times higher than the same period.
In the third quarter of 2024, Tay Ninh Rubber (TRC) brought in 73.1 billion VND in after-tax profit, 5.8 times higher than the same period.
Shortage of supply, rubber prices expected to remain high for a long time
Rong Viet Securities believes that world rubber prices are expected to remain high from now until at least 2026, creating favorable conditions to promote profit growth for many rubber enterprises, including Tay Ninh Rubber.
In early October, world rubber prices continued to increase and reached a 13-year high, reaching VND73.6 million/ton for RSS3 rubber, an increase of nearly 97% over the same period last year, and an increase of more than 10% compared to September.
Analysts at Rong Viet Securities said that looking back at the period 2015 - 2023, the La Nina phase caused storms and rains that affected the natural rubber supply in Southeast Asia (Vietnam, Thailand, Malaysia, etc.), leading to a shortage of supply and promoting short-term price increases. According to the forecast of the International Research Institute (IRI), the La Nina phase has a 71% probability of appearing in the period from September to November 2024.
Historical data from IRI shows that La Nina phases typically last 9-12 months, or even up to 2 years. Therefore, the world rubber supply may continue to be constrained.
Rong Viet Securities currently forecasts that world rubber production is entering a new cycle of decline with the possibility of a supply shortage throughout 2025 - 2026, especially in the context that Thailand is implementing a roadmap to reduce the area of rubber plantations in the next 20 years to grow other crops with higher economic value. New planting areas in other places are expected to be harvested as soon as possible in 2027 - 2028.
Meanwhile, rubber consumption demand is expected to remain stable and may increase slightly next year, thanks to the recovery of production in major consumer markets (China, India, Thailand), especially rubber products such as tires and gloves.
The Association of Natural Rubber Producing Countries (ANRPC) currently forecasts that the global market will be short about 600,000 - 800,000 tons of rubber per year from now until 2028. Therefore, the world rubber price is expected to stay high from now until at least 2026.
Rong Viet Securities believes that world rubber prices are expected to remain high from now until at least 2026.
Returning to Tay Ninh Rubber, it is known that as of September 30, 2024, the company's asset size reached VND 2,084 billion, a slight increase of 4% compared to the beginning of the year. Of which, cash and equivalents recorded more than VND 203 billion, an increase of nearly 92%. Inventory increased by 10% to VND 55 billion.
In terms of capital, TRC's liabilities were recorded at VND369 billion, up 7% over the same period. Owner's equity accounted for more than 82% of total assets, reaching VND1,715 billion.
In 2024, Tay Ninh Rubber plans to have a minimum revenue of 400 billion VND and a profit after tax of 70 billion VND.
Previously, Tay Ninh Rubber closed the list of shareholders to pay 2023 cash dividends at a rate of 9%, equivalent to shareholders owning 1 share will receive 900 VND.
With over 29.1 million shares in circulation, Tay Ninh Rubber will have to spend over VND26.1 billion to pay dividends to existing shareholders. The ex-dividend date is September 27, and the expected dividend payment date is November 6.
Tay Ninh Rubber Joint Stock Company was formerly a French rubber plantation. In April 1945, the revolution took over and named it Tay Ninh State Rubber Farm. In 1981, the Farm was upgraded to a Company and named it Tay Ninh Rubber Company.
On March 27, 1987, the General Department of Rubber of Vietnam signed a decision to convert Tay Ninh Rubber Company into Tay Ninh Rubber Joint Enterprise and on March 4, 1993, the Ministry of Agriculture and Food Industry signed a decision to convert Tay Ninh Rubber Joint Enterprise into Tay Ninh Rubber Company.
Source: https://danviet.vn/bao-lai-quy-iii-2024-tang-khung-cao-su-tay-ninh-giai-trinh-ra-sao-20241012205652652.htm
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