Vietnam Rubber Group (VRG, stock code GVR), a large enterprise on the stock market, has approved a plan for revenue and after-tax profit in 2024 of 24,999 billion VND and 3,437 billion VND, respectively.
VRG’s main business lines are planting, processing, and trading rubber, processing artificial wood; rubber industry and business of industrial parks (IPs) on VRG’s rubber land converted according to the land use plan approved by the Government.
VRG sets the target of after-tax profit in 2024 at 3,437 billion VND
The basis for the group to set such a high business plan is the good recovery of rubber prices, which helps increase revenue. According to experts, the rubber supply may continue to be in deficit in 2024-2025, the global market may face a shortage of about 600,000-800,000 tons per year due to the decline in planting area in Thailand and Indonesia.
This supply and demand gap comes from the fact that the consumption of natural rubber worldwide can maintain a growth rate of 4-6% per year, thanks to the recovery of the global automobile and tire manufacturing industry, especially in the market. China.
Notably, in the context of many foreign corporations shifting their operations to Vietnam, industrial real estate is becoming a “golden goose” for many enterprises. While VRG has a very large industrial land fund, including about 6,000 ha of rubber land that can be converted into industrial land and approximately 15,000 ha of infrastructure in the 2020-2023 period. GVR has a large rubber land fund in Vietnam, with a scale of ~280,000 ha and plans to convert about 40,000 ha to industrial land in 2020-2023. The company is currently focusing on 8 projects with a total area of about 2,900 ha. When the projects are operational, GVR’s revenue and profit will be greatly improved.
Meanwhile, Minh Phu Seafood Corporation (stock code MPC) – specializing in shrimp farming, processing, and exporting and supporting industries, has just set a profit target for 2024 exceeding 1,000 billion VND, despite the fact that the previous year, the shrimp industry giant lost up to 111 billion VND.
Minh Phu shrimp sets a profit target of over 1,000 billion VND for the first time this year
The basis for the 2024 business plan of “shrimp king” Minh Phu lies in the MPBiO shrimp farming technology. This technology helps Minh Phu reduce the cost of water treatment chemicals by over 95%, electricity costs by 50-70%, shrimp feed costs by over 30%… Thereby helping to reduce farming costs by 30-50%.
Durian, banana, and pork are the 3 main products of HAGL today
Another agricultural company is Hoang Anh Gia Lai Group Joint Stock Company (HAGL, stock code HAG) led by Chairman of the Board of Directors Doan Nguyen Duc, although the profit target for 2024 has not been announced, but with the goal of paying off all debts by 2026, this number will certainly be over 1,000 billion VND.
Previously, in 2023, Bầu Đức’s enterprise recorded total revenue of 6,442 billion VND, an increase of 26% compared to the previous year, and net profit reached 1,664 billion VND, an increase of 47% and the highest in many years.
According to the 2023 annual report recently announced by the enterprise, Bầu Đức said that in 2024, HAGL will plant an additional 2,000 hectares of bananas, bringing the total banana area to 9,000 hectares, and plant an additional 500 hectares of durian, bringing the total durian area to 2,000 hectares. HAGL currently owns 10 pigsty clusters with a capacity of 24,000 sows and 600,000 fattening pigs.
“In 2030, HAGL will become the leading agricultural company in Vietnam with a scale of 30,000 ha and become a supplier of agricultural products to the entire Asian region” – Bau Duc wrote in a message to shareholders.
