Thành Công Textile – Invest – Trade Joint Stock Company (HOSE: TCM) announced its business results for January 2024, with a revenue of over $14.3 million (VND 353 billion) and after-tax profit of $977 thousand (about VND 24 billion), increasing by 43% and 62% respectively compared to the same period of the previous year. This is also the highest profit level for TCM in the past 9 months, since May 2023.
In the first month of the year, TCM’s textile revenue comes from 3 main sectors, with garment products accounting for 75% of total revenue, fabric accounting for 14%, and fiber accounting for 8%.
For the export market, Asia plays the dominant role with a 74.9% share, led by Japan (28.61%), South Korea (22.93%), China (9.99%), and Vietnam (6.58%). Export to the Americas accounts for 20%, of which the United States (12.41%) and Canada (7.43%) are the major destinations.
Exports to the EU market only account for a small proportion of total revenue, about 4.8%. Moreover, TCM mainly exports on FOB terms and imports raw materials and goods on CIF terms.
Therefore, TCM believes that the situation in the Red Sea crisis has had minimal direct impact on the company’s transportation costs and delivery time.
“The company’s import-export situation is still proceeding normally and has not encountered any barriers or difficulties due to the impact of the recent conflicts in the Red Sea,” emphasized the TCM management.
Illustrative image
|
In terms of order situation, TCM reports good news as it has exceeded the revenue plan for the first quarter and has achieved about 80% of the revenue plan for the second quarter of 2024.
|
In 2024, despite many difficulties and challenges in the global economy, the Vietnamese textile industry is determined to achieve an export turnover of $44 billion, an increase of 9.2% compared to 2023. |
Based on the forecast of the Vietnamese textile export market in 2024 and the current order reception situation, TCM is confident that the export order situation of the company will be more favorable than in 2023.
Ending 2023, Thành Công Textile achieved a revenue of over VND 3.3 trillion and a net profit of nearly VND 132 billion, representing a decrease of 23% and 53% respectively compared to the previous year. This is also the lowest profit level for TCM in the past 7 years, since 2017. This means that the company was unable to fulfill the profit target of VND 245 billion set for 2023.
By the end of February 27th, the TCM stock price stood at VND 43,350/share, an increase of 6% compared to the beginning of the year, but still lower by 14% compared to the short-term peak in June 2023.
| TCM Stock Price Since the Beginning of 2024 |
