Rubber industry group's 6-month profit reaches 1,909 billion VND, stock price reaches highest level

Implement tasks resolutely and effectively

Mr. Tran Cong Kha - Chairman of the Board of Directors of Vietnam Rubber Industry Group (VRG, stock code GVR) said on July 19 that 2024 is of special importance, being the fourth year that VRG implements the Restructuring Project for the period 2021-2025, the 5-year Production, Business and Investment Development Plan (2021-2025).

The Group is implementing its 2024 tasks in the context of a gradually recovering macro-economy. Rubber latex prices are on the rise, and policies and mechanisms for investment implementation are gradually being cleared. However, other objective factors such as climate change, prolonged droughts that have greatly affected latex harvest output, shortage of latex tapping labor in some areas, and continuously increasing prices and input costs for production are the main challenges facing the Group's production and business activities since the beginning of the year.

Mr. Tran Cong Kha – Chairman of VRG Board of Directors

In the first 6 months of the year, VRG's consolidated revenue is estimated at VND10,092 billion, up 5.7%; consolidated pre-tax profit is estimated at VND1,909 billion, up 4.3% over the same period last year; expected budget contribution of the whole Group is VND967 billion.

Among the main business segments, the rubber sector had the best results with revenue of VND 7,000 billion, 11.1% higher than the same period last year thanks to increased latex prices despite sales volume reaching 176,721 tons, down 17%. The average latex selling price in the first 6 months of 2024 of the whole group was about VND 39.1 million/ton, VND 6.8 million/ton higher than the same period in 2023. VRG's inventory is 25,717 tons, 43% higher than the same period in 2023; of which the contracted quantity is 29,104 tons.

In the infrastructure sector of industrial parks (IPs) converted from rubber land, in the first 6 months of 2024, new investment and expansion projects are undergoing implementation procedures, so there is no new land fund for lease; along with the trend of narrowing production of many partners, in the first half of 2024, VRG's IPs only leased 17 hectares, equal to 6.9% of the annual plan. Revenue of IPs in the first 6 months of 2024 reached about 699 billion VND, pre-tax profit about 414 billion VND.

Regarding investment and development, in 2024, the Group will mainly focus on implementing investment preparation procedures for key projects - industrial park projects on converted rubber land with a total area of ​​2,809 hectares in Binh Duong, Binh Phuoc, Tay Ninh and Gia Lai provinces; continue to implement ongoing and operating projects (rubber projects, wood processing projects, industrial parks, etc.).

The total number of employees of VRG's member units as of June 30 was 81,238 people. The average income of the Group's member units in the first 6 months of the year was 6.79 million VND/person/month, equivalent to the income of the same period in 2023. The income of employees in the last months of the year will increase due to increased productivity and mining output.

VRG will develop an additional 10,000 hectares of industrial real estate

Right from the beginning of the year, VRG has developed and issued the "Green Growth and Sustainable Development Operation Plan 2024" on the basis of the "Green Growth and Sustainable Development Strategy of the Group for the period 2023 - 2030, vision to 2050".

By the end of June, the Group had 33 member companies developing a Sustainable Forest Management Plan covering 284,354 hectares; 18 member companies were granted the Sustainable Forest Management Certificate according to VFCS/PEFC with about 118,337 hectares and 38 factories (natural rubber processing, wood processing and rubber industrial products) achieving PEFC-CoC (chain of custody). Implementing the 2024 Sustainable Enterprise certification for 23 member companies of the Group in the fields of rubber, rubber industrial product manufacturing, wood processing, industrial park business and hydropower.

In the last 6 months of 2024, VRG will maximize available resources and proactively propose appropriate and adaptive solutions to complete and exceed the 2024 production and business plan. Continue to develop the Group on the basis of 3 pillars: Economy - Environment - Society; effectively implement the green growth and sustainable development program, develop responsibly towards society; continue to enhance the role of enterprises in the process of developing agriculture, farmers and rural areas.

With the positive results achieved, on the stock exchange, the stock code GVR reached 38,500 VND/share (July 15), an increase of 100% compared to the beginning of the year and the highest since the group listed on the stock exchange, bringing VRG's capitalization to over 2 billion USD.

In the coming time, VRG will continue to invest in Hiep Thanh Industrial Park - Phase 1, Nam Tan Uyen Industrial Park expansion phase 2. By 2030, VRG and its member companies will register as investors in expanded industrial parks and newly established industrial parks with a total area of ​​10,122 hectares, thereby increasing the total area of ​​the Group's industrial parks to about 14,248 hectares.

Regarding VRG's upcoming activities, Vice Chairman of the State Capital Management Committee at Enterprises Do Huu Huy noted that in the context of this year's rubber latex price being more favorable than in 2023, VRG leaders need to focus on directing and operating the entire Group to complete and exceed the production and business plan for 2024.

It is known that with the positive results achieved, on the stock exchange, the stock code GVR reached 38,500 VND/share (July 15), an increase of 100% compared to the beginning of the year and the highest since the group listed on the stock exchange, bringing VRG's capitalization to over 2 billion USD.

VRG is the first state-owned enterprise to successfully implement Resolution 68 of the Government issued in 2022 on continuing to innovate, improve operational efficiency and mobilize resources of state-owned enterprises, focusing on economic groups and corporations in socio-economic development.

Source: https://danviet.vn/loi-nhuan-6-thang-cua-tap-doan-nganh-cao-su-dat-toi-1909-ty-dong-gia-co-phieu-len-cao-nhat-20240720221703467.htm