Worker at Thuan An Wood Factory
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Thuan An Wood Processing Joint Stock Company (HOSE: GTA) has just released the 2023 Annual Report. Looking back, the Company’s leadership evaluated 2023 as a year full of fluctuations, from global politics to the global economy, affecting trading activities, imports and exports, especially in the manufacturing and wood processing industry.
With the prolonged shortage of orders and the rising price of raw materials, while the price of products keeps decreasing and the quality requirements continue to increase, it has greatly affected the company’s business results.
As a result, GTA’s revenue in 2023 dropped to the lowest level in 16 years (since 2008), reaching VND 249 billion, a decrease of 49% compared to the previous year and only achieving 75% of the annual plan. Thanks to a significant reduction in costs, net profit was almost equivalent to the low base of the same period, reaching VND 10 billion, surpassing the annual profit target by 9%.
In terms of investment items, in 2023, GTA implemented 1 investment item worth VND 188 million, while the wall and gate construction item of the Company worth nearly VND 1.7 billion is still in progress and expected to be completed in 2024.
GTA’s leadership anticipates that 2024 will still be a difficult year for the wood processing industry in general and the company in particular, as the shortage of orders continues. Businesses will compete on product prices to secure production orders, which will result in a general lower selling price for the output products, making it difficult for the company to find production orders.
Based on that basis, GTA sets its total revenue and net profit targets for 2024 at VND 273.5 billion (an increase of 3% compared to the realization in 2023) and VND 8.6 billion (a decrease of 17%). The dividend payout ratio is expected to be 5%, lower than the target of 5.5% set for 2023. The average income per person per month is expected to reach VND 8.5 million, a slight decrease of 3%.
As of December 31, 2023, the total number of employees of the Company is 529, a decrease of 130 compared to the previous year.
In 2024, GTA will focus on the development of production at its Binh Phuoc branch, making full use of the existing capacity of the branch; building and expanding 2 additional workshops and 1 office. At the same time, the company will reorganize production and transform the Thuan An factory according to the province of Binh Duong’s plan to relocate wood processing companies outside industrial zones.
