AsemconnectVietnam - Positive business results in the first 4 months of the year along with positive prospects for the second half of the year have motivated TCM shares to set a new peak in more than 2 years due to the surge on May 21.

Thanh Cong Textile and Garment - Investment - Trading Joint Stock Company (stock code TCM - HOSE) has just announced its business results for April and the first 4 months of the year. Accordingly, TCM recorded revenue in April 2024 reaching USD11,927,543, up 13% over the same period; profit after tax reached USD907,047, up 399%.
The Company's textile and garment revenue in April 2024 comes from 3 main segments, of which garment products account for 75%, fabric accounts for 14% and yarn accounts for 8% of total revenue.
In the first 4 months of the year, TCM's revenue reached USD51,678,540, up 8% over the same period in 2023 and reaching 33% of the 2024 plan; profit after tax reached USD3,408,629, up 38% over the same period and reaching 50% of the yearly plan.
Regarding the order situation, up to now, the Company has received about 88% of the revenue plan for orders in the second quarter of 2024 and about 83% of the revenue plan for orders in the third quarter of 2024.
In 2024, the Company sets a revenue target of VND3,707 billion (USD157.7 million), an increase of about 12% compared to the results achieved in 2023; After-tax profit is VND161.2 billion (USD6.68 million), an increase of about 21% compared to 2023.
According to the forecast of Vietnam's textile and garment export situation in 2024 and the Company's current order receipt, TCM hopes that in 2024, the Company's export order volume will be more positive than in 2023 and achieve the set business plan.
Regarding the export situation, TCM exports textile and garment products to major markets around the world. In April 2024, the Company's exports to the Asian market accounted for 62.86%, of which the Korean market accounted for 24.09%, the Japanese market accounted for 21.56%, Vietnam accounted for 8.26%, China accounted for 5.38%. Next, the American market accounted for 32.2%, of which the US market accounted for 28.66%, Canada accounted for 3.56%; The remaining European market accounts for 3.8%, of which the UK market accounts for 2.83%.
In addition to exporting traditional products, the Company has been promoting product diversification, especially environmentally friendly products, recycled products and high-value products to enhance the product value chain, expand customers in markets with much room as well as seek and expand new customers and markets to increase export revenue, while promoting the development of the current and future domestic markets.
Regarding the general situation of the textile and garment industry, TCM commented that although in the first months of the year, the foreign and domestic economies showed signs of recovery, Vietnam's textile and garment export turnover grew well, there are still many potential risks when factors such as geopolitical conflicts are continuing to be tense, leading to disruptions in the supply chain and the risk of pushing up costs such as energy and transportation.
The pressure of processing prices has not improved, making production efficiency low, while input costs such as wages and electricity prices will increase from mid-year. In addition, unfavorable factors for textile and garment enterprises, such as new mandatory regulations related to human rights and environmental assessment in the supply chain, ecological design regulations, recycled products, and textile waste treatment, are becoming increasingly evident.
Challenging factors still exist, requiring enterprises to be cautious and always ready to prepare production and business plans in unstable market conditions.
N.Nga
Source: VITIC/Tinnhanhchungkhoan