AsemconnectVietnam - Da Nang Rubber Joint Stock Company (DRC - HOSE) set a business plan in 2020 with revenue of 4,062.7 billion dong, profit before tax of 280 billion dong, up 5.3 percent and down 10.6 percent respectively compared with last year.

The company said that the reason for the prudent business plan is due to the current challenges. Specifically, in the international market, DRC is under competitive pressure of Chinese enterprises in the Brazilian market when the Brazilian government expires the anti-dumping tax law on tire products from China in May 2020.
Besides, many Chinese tire companies have moved their factories to Southeast Asia, when their tires will be from Southeast Asia. Therefore, DRC will face more competition in the domestic market due to tire products enjoying import tax rate of 0 percent because Vietnam has implemented the roadmap of tax reduction under the signed trade agreement.
In 2019, the Company recorded VND 3,858 billion in revenue, VND 251 billion in after-tax profit, growing by 8.65 percent and 77.74 percent compared to 2018. Accumulated in the past year, DRC completed 94,4 percent of the revenue plan and 199 percent of the profit plan. Specifically, the gross profit margin increased from 12.13 percent to 14.81 percent and net profit margin increased from 3.97 percent to 6.49 percent.
Therefore, after 2017 and 2018 with negative growth, in 2019, DRC has witnessed strong growth momentum, especially business efficiency. In particular, in addition to the bright spot on business results, cash flow from main business activities also showed signs of improvement.
Specifically, in 2018 only VND226 billion, in 2019 it was VND 406 billion. Thanks to the good operating cash flow, the company has paid the loan and paid dividends to the investors up to 397 billion dong.
In addition, recently, internal shareholders of the Company have continuously purchased shares. Specifically, the Chairman's wife bought 110,000 DRC shares, Deputy General Director Le Hoang Khanh Nhut bought 29,900 shares; Deputy General Director Nguyen Manh Son registered to buy 50,000 shares and the Chairman's wife continues to buy 200,000 shares, the trading time is expected from March 27 to April 24.
N.Nga
Source: Securities Investment Newspaper