Since the beginning of the year, GVR shares of Vietnam Rubber Industry Group – JSC have skyrocketed by 72%, approaching the highest peak in the past 3 years.
The most notable was the session on June 26, when this code hit the ceiling price of VND35,950/share. Liquidity also increased dramatically to 10.3 million units, 2.2 times higher than the average volume over the past month.
Entering the morning trading session on June 27, GVR shares continued to rise, increasing by about 1% to around VND36,300/share. The corresponding capitalization value was VND145,200 billion (USD5.6 billion), an increase of VND61,200 billion compared to the beginning of the year.
GVR price performance.
Along with that, GVR's business results and production and business orientation also contributed to helping this stock fly high.
Benefit greatly from converted rubber land fund
In the period of 2021 - 2025, in addition to focusing on implementing legal procedures and implementing investment projects in industrial parks/industrial clusters that have been approved for investment and are applying for approval with an area of 2,921 hectares, the Vietnam Rubber Industry Group said it will continue to develop an additional 16,592 hectares. Of which, the group will be the investor of 10,997 hectares in Tay Ninh, Binh Duong, Dong Nai and Ba Ria - Vung Tau provinces; and the units will invest in 5,615 hectares.
Previously, in 2023, VRG focused on developing many large-scale industrial park projects such as the Nam Tan Uyen Industrial Park expansion project phase II with an area of 344 hectares (Binh Duong); the Rach Bap Industrial Park expansion project with an area of 360 hectares (Binh Duong); the Industrial Park infrastructure investment and business project with an area of 317 hectares (Binh Phuoc); the Minh Hung III Industrial Park expansion project with an area of 577.53 hectares (Binh Phuoc); the Hiep Thanh Industrial Park phase I project with an area of 95.17 hectares (Tay Ninh)...
According to KBSV Securities Company, GVR has a lot of potential from its large converted rubber land fund. From the end of 2023 to now, the Prime Minister has approved the provincial planning of 3 GVR provinces with large rubber land funds: Tay Ninh, Ba Ria - Vung Tau, Binh Phuoc with a total converted area of nearly 25,000 hectares. In addition, Binh Duong and Dong Nai are also waiting for the final planning approval.
Thanks to that, KBSV expects the speed of land conversion and implementation of GVR's industrial park projects to be accelerated. This large rubber land fund, when converted into industrial parks and infrastructure, will ensure cash flow from compensation, as well as leasing industrial parks to businesses in the long term.
KBSV Securities believes that the land allocation for Nam Tan Uyen 3 - an industrial park located in the key economic zone of Binh Duong - at the end of May has created room for short- and medium-term growth for GVR, expected to contribute to GVR's business results from 2024.
According to Nam Tan Uyen's preliminary estimate, the Nam Tan Uyen 3 project will bring in cash flow of about more than 600 billion VND/year and after-tax profit of about 400 billion VND/year until 2027 - 2028 after being put into operation, expected from 2024.
Regarding potential, according to a report by An Binh Securities Joint Stock Company (ABS Research), in 2024 and 2025, the rubber segment is expected to become more active, along with the potential industrial park real estate segment, which will be the main factors driving up GVR's revenue.
Benefiting from the rising rubber prices, the Vietnam Rubber Industry Group, although operating in the agricultural sector, has a bright financial picture. Thanks to that, the company has abundant cash resources, pouring into investing in many fields, including real estate,...
In 2012, GVR recorded a record revenue of VND26,457 billion, and a peak profit of VND6,596 billion. It has been more than 10 years and still has not been able to surpass its own record.
However, in the period from 2013 to 2015, rubber prices did not increase as expected, and both GVR's revenue and profit plummeted. Accordingly, net revenue reached VND15,069 billion, profit reached VND2,016 billion - a decrease of 43% and 69% respectively compared to the same period in 2012.
With soaring production and business results in 2021, the Vietnam Rubber Industry Group has come close to a business record. However, before it could "overthrow" the record, the rubber industry was affected by the decline in rubber prices in the following years, leading to a decline in production and business.
Accordingly, although net profit in the last quarter of 2023 increased by 28%, with bright spots from financial and other profits. However, in the whole year of 2023, GVR's profit still decreased by 33%, to about 2,585 billion VND, in the face of many difficulties in the main rubber latex segment.
In the first quarter of 2024, the company recorded net revenue of VND 4,585 billion, an increase of nearly 11% over the same period. Of which, revenue mainly came from rubber latex production and trading activities with VND 3,390 billion, accounting for 74% of total revenue; net revenue from wood processing VND 540 billion; net revenue from real estate and infrastructure business VND 142 billion.
After deducting expenses, GVR reported a profit of 650 billion VND in the first quarter of 2024, down 14% over the same period last year .
Source: https://www.nguoiduatin.vn/huong-loi-doi-duong-co-phieu-gvr-bay-cao-a670354.html
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