Slight growth plan for 2024
In 2024, GVR plans for revenue of nearly 25 trillion VND, a slight increase of 1% compared to 2023. Pre-tax profit is over 4.1 trillion VND, the same as the previous year, and after-tax profit is over 3.4 trillion VND, a 2% increase.
Source: GVR’s Special General Meeting documents for 2024
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Therefore, the planned figures are not significantly different from the implementation in 2023 – a year marked by many difficulties for GVR in particular and the rubber industry as a whole, as Vietnam’s rubber exports decreased by 0.04% in volume and 12.7% in value compared to 2022, alongside a 12.7% decrease in average export prices.
Although Q4 net profit increased by 28%, with bright spots from financial activities and other profits, GVR’s net profit for the whole year of 2023 decreased by 33%, reaching approximately 2.6 trillion VND, against the backdrop of difficulties faced by the main business segment, which is rubber latex.
GVR: Net profit decreased by 33% in 2023 compared to the previous year
Difficulties besiege the rubber industry in 2023; many businesses still meet their targets
Detailed planning for 2025
The 2024 plan mentioned above is part of GVR’s long-term plan for 2021-2025, in which the revenue target for 2025 is set at 28.6 trillion VND and pre-tax profit is over 5 trillion VND.
GVR plans to cultivate, care, exploit, and trade products from rubber trees with an area of ​​360-370 thousand ha (245-255 thousand ha in Vietnam and 115 thousand ha abroad), exploiting approximately 400 thousand tons of rubber latex, consuming about 500 thousand tons (including processed rubber and purchased rubber), and producing approximately 1.5 million m3 of rubber wood.
GVR will also invest in expanding and upgrading wood processing factories with a capacity of about 1.5 million m3. Continue to develop the VRG tire brand with a production capacity of 40-50 thousand products. Accelerate effective exploitation of industrial zones and clusters on converted rubber land; vigorously invest in expanding existing industrial zones and clusters, as well as investing in new ones. GVR also stated that it will strive to develop about 10 thousand hectares of other types of crops with conditions to apply high-tech solutions and be effective.
For the entire period of 2021-2025, the estimated revenue and pre-tax profit are 135 trillion VND and 25 trillion VND, respectively.
Capital transfer at 4 listed companies, wanting to control VRG Rubber
According to the plan to rearrange businesses and restructure investments until the end of 2025, GVR will transfer capital in 1 unit currently holding a controlling stake, which is Commercial Services and Tourism Rubber Joint Stock Company, as well as 7 units not holding a controlling stake, including 4 companies listed on the stock exchange: Urban Development and Industrial Zone Rubber Vietnam Joint Stock Company (UPCoM: VRG), International Tourism Joint Stock Company Vung Tau (UPCoM: VIR), EVN International Joint Stock Company (UPCoM: EIC), and Saigon VRG Investment Joint Stock Company (HOSE: SIP); and 3 other entities: Vietnam-Laos Electricity Joint Stock Company, Construction and Irrigation Joint Stock Company No.4, and An Loc – Hoa Lu National Road BOT Joint Stock Company. Conversely, GVR is considering investing additional capital to hold a controlling stake in BRC Rubber Joint Stock Company (HOSE: BRC).
In addition, GVR will also reorganize 5 hydroelectric companies according to the direction, decision, and ruling of competent authorities and dissolve the Visorutex Joint Venture Enterprise when conditions are met according to the provisions of the law. The member companies in Laos are also included in the plan, with the merger of VRG Oudomxay Co., Ltd. into Quasa Geruco Joint Stock Company and the merger of Quavan Rubber Co., Ltd. into Vietnam-Laos Rubber Joint Stock Company.
