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Chemical firms see growth potential thanks to rising selling prices – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

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A employee working a manufacturing line inside a Đức Giang Chemical plant in Hưng Yên Province. In 2022, Đức Giang Chemical Group Joint Inventory Firm (DGC) units a goal of VNĐ12.1 trillion in income and VNĐ3.5 trillion in revenue after tax. — Picture ducgiangchem.vn


HÀ NỘI — Because of their good progress potential and engaging valuation, chemical shares are being included within the portfolios of traders.


The inventory market final week recorded 4 out of 5 declining classes, of which the primary session of the week recorded the strongest decline with the VN-Index shedding greater than 57 factors. Some traders see this as a possibility to hunt for affordable shares.


Phạm Đình Công from Hà Nội informed tinnhanhchungkhoan.vn that he had taken the chance to purchase some shares previously week, prioritising the enterprises with good monetary standing and progress potential, such because the chemical group.


In accordance with ACB Securities Firm (ACBS), in Might 2022, the economic manufacturing index of the chemical group continued to develop by 5 per cent. Rising promoting costs from the start of the 12 months till now are the primary progress driver of this group.


Within the first quarter of this 12 months, a sequence of chemical enterprises reported sudden will increase in income. Đức Giang Chemical Group Joint Inventory Firm (DGC) reported a revenue of VNĐ1.51 trillion (US$67.7 billion), the best since its inception, up 418 per cent over the identical interval final 12 months. South Fundamental Chemical substances JSC (CSV) reported a 3-time larger revenue than the identical interval final 12 months due to a pointy enhance in output and promoting costs, finishing 56 per cent of the yearly plan. Việt Trì Chemical JSC (HVT) achieved a revenue of VNĐ36 billion ($1.55 million), 4 occasions larger than final 12 months.


Specialists forecast that this progress momentum will proceed sooner or later. Mirae Asset Vietnam Securities Firm mentioned that the gradual discount of heavy industrial merchandise by China, in addition to partial closure of the nation underneath the affect of the COVID-19 pandemic, has decreased the long-term provide of many chemical merchandise. World costs of phosphorus continued to rise, the corporate mentioned.


In reality, the worth of phosphorus has elevated by practically 40 per cent within the first two months of this 12 months and has not stopped. The worth of nitric acid, a chemical utilized in fertiliser manufacturing, elevated constantly since March, up by 26 per cent.


In 2022, Đức Giang Chemical Group Joint Inventory Firm (DGC) units a goal of VNĐ12.1 trillion in income and VNĐ3.5 trillion in revenue after tax.


In the meantime, the South Fundamental Chemical Joint Inventory Firm (CSV) goals to realize income of VNĐ1.74 trillion and revenue after tax of greater than VNĐ251 billion this 12 months. Thus, on the finish of the primary quarter, the corporate has accomplished 28 per cent of its income goal and practically 56 per cent of its revenue goal for the entire 12 months. Việt Trì Chemical (HVT) additionally fulfilled 56 per cent of its annual revenue goal within the first three months of this 12 months. This 12 months, HVT units a pre-tax revenue goal of solely VNĐ80 billion.


Analysts forecast that the enterprise outcomes of the second quarter of chemical companies will proceed to flourish.


Chemical enterprises are planning to develop progress. In early June, Đức Giang Chemical Group Joint Inventory Firm (DGC) invested in two initiatives in Đắk Nông Province, together with the Đức Giang- Đắk Nông fertiliser manufacturing unit and Đắk Nông aluminium advanced undertaking with whole funding capital of VNĐ300 billion.


Đức Giang- Đắk Nông fertiliser manufacturing unit is anticipated to be in-built 12 months. The plant will produce NPK fertiliser with a capability of 200,000 tonnes per 12 months and can produce potassium sulfate with a capability of 4,800 tonnes per 12 months.


For the Đắk Nông aluminium advanced undertaking, the exploitation scale is anticipated to be about 14.4 million tonnes of bauxite ore per 12 months. The advanced may have three ore sorting vegetation with a capability of 5.8 million tonnes of refined ore per 12 months. The whole funding of the 2 phases is VNĐ57 trillion.


In accordance with the Ministry of Trade and Commerce, many corporations have centered on investing in know-how to advertise progress. For instance, Lâm Thao Fertilisers and Chemical substances Joint Inventory Firm has applied its undertaking to transform sulfuric acid manufacturing know-how from single absorption to double absorption. The South Fundamental Chemical Joint Inventory Firm and the Việt Trì Chemical Joint Inventory Firm have utilized the electrolysis know-how of sodium hydroxide ion change membrane.


Within the draft of the Việt Nam Chemical Trade Improvement Technique to 2030 that the Ministry of Trade and Commerce is submitting to the Authorities, the chemical business is developed in each width and depth.


Not solely assembly home demand, companies within the business will increase exports, forming a worth chain to deeply take part within the industrial manufacturing community of the area, aiming for inexperienced financial progress.


At present, the market worth of chemical shares is seeing corrections that are thought of to be low-cost in comparison with the intrinsic potential of the companies. In the long run, that is an business group with steady and sustainable progress, bringing advantages to traders, mentioned Nguyễn Thế Minh, analysis director of Yuanta Securities Vietnam.


He mentioned that chemical shares are one of many teams benefiting from the restoration of the economic system. VNS

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