Ho Chi Minh City, July 28th, 2020 – Ho Chi Minh Stock Exchange (HoSE) announced and presented its decision on An Phat Holding’s official listing, and welcomed the first trading day of An Phat Holdings’ shares (Ticker Symbol: APH). Attending and witnessing the gong ceremony of the first session were the leadership of An Phat Holdings, Mr. Pham Hoang Viet – Vice Chairman, Mr. Nguyen Le Trung – Vice Chairman, Mr. Dinh Xuan Cuong – Vice Chairman, Chief Executive Officer of APH and representatives of Ho Chi Minh City Stock Exchange.
At the ceremony, representatives of Ho Chi Minh Stock Exchange awarded the decision to list and congratulate on the first trading session of APH stock.
With the opening price of VND 41,500 per share, price range +/- 20% on the first trading date, APH shares hit the ceiling price of VND 49,800 per share after ATO. Trading volume reached nearly 225,000 shares today. After the first trading session, APH’s market cap reached VND 6,600 billion, equivalent to nearly USD 281 million, becoming stock of the plastic industry that has the largest cap in Vietnamese securities market.
The certain price has been reflected in the previous IPO, which successfully auctioned 4.3 million APH shares with the average bidding price of VND 50,018 per share on June 22, 2020. According to the representative of An Phat Holdings, investors placed their confidence in the potential of APH’s green products with market expansion both at home and abroad. As a result, investors paid a much higher price than the starting price at the IPO as well as after officially listing shares on HoSE.
Speaking at the ceremony, Mr. Dinh Xuan Cuong – Vice Chairman, Chief Executive Officer said: “This is an important milestone, marking the new journey of An Phat Holdings in becoming a listed company, a member of Ho Chi Minh City Stock Exchange. In 2020, An Phat Holdings aims to focus on compostable products. Therefore, having raw materials self-supply for production, the most important determinant of product cost, is a top priority. And we solved this problem by IPO to mobilise capital for the construction of the first compostable material manufacturing plant in Vietnam.”
By listing on HoSE, APH is expected to seize cooperation opportunities to lure investors, bringing potential opportunities for domestic and foreign investors as well as raising capital to build the first compostable material manufacturing plant in Vietnam called AnBio. The project will put APH in the list of one of a few companies that produce compostable materials in the world besides BASF, Novamont, NatureWorks, Total Corbion etc and completely change APH’s position to be a manufacturer and supplier of green materials. At present, APH is the only Vietnamese enterprise that holds the patent for manufacturing compostable materials.
The raw materials self-supply will help APH reduces product costs, expands the market and saves production costs about 30% for subsidiaries while the parent company still enjoys a gross profit margin of 25-30% of this project. APH targets that compostable products will contribute 40 – 50% to packaging revenue by 202. The construction of the plant is expected to start at the beginning of 2021 at Hai Phong, with an 18-month construction period, completed by 2022, with a capacity of 20.000 tons per year.
In the year of 2017, An Phat Holdings was established, marking its transition to holding model from the former company Anh Hai Duy founded in 2002.
Over the past two decades, from the number one thin monolayer film in Southeast Asia with 15 member companies throughout Vietnam and branches in the United States, Singapore, South Korea and France etc. Currently, APH main business line operating in: Compostable materials and finished products; Packaging; Engineering plastics and SPC flooring; Raw material and chemicals for plastics industry; Precision engineering & molding; Industrial real estate.
Also, APH directly owns two listed companies: Hanoi Plastics Joint Stock Company (Ticker symbol: NHH) and An Phat Bioplastics Joint Stock Company (Ticker symbol: AAA), and indirectly own shares of 10 other companies through the two companies listed above.
In 2019, APH’s consolidated revenue and profit after tax is VND 9,513 billion and VND 712 billion respectively, increased 19% and 305% over the same period in 2018. Gross profit reached VND 1,082 billion, soared 60%; gross profit margin improved from 8 to 11% compared to the previous year. Total assets reached nearly VND 10,000 billion. As of July 2020, APH’s earnings per share (EPS) reached VND 3,076.
In 2020, APH set a target for revenue and net profit up to VND 12,000 billion and VND 650 billion respectively. In the long term, APH’s growth driving force will come from compostable products thanks to its compostable material manufacturing plant.