Unveiling a 'gold mine' overlooked by investors, the company consistently earns over 20% profit.

Investors are often interested in popular sectors such as banking, real estate, and securities. Meanwhile, the natural rubber industry, despite its outstanding business performance, is often overlooked.

Natural rubber companies have quarterly gross profit margins above 20% - Photo: QUANG DINH

The rubber "gold mine" has been forgotten by investors.

Financial reports from natural rubber companies show positive business results, with quarterly gross profit margins consistently above 20%.

For example, Vietnam Rubber Industry Group (code: GVR) recorded net revenue of VND 9,294 billion in Q3 2025, a 20% increase compared to the same period last year. The gross profit margin reached 28%. For the first nine months of the year, revenue reached VND 20,861 billion, a 23% increase compared to the same period in 2024.

Dong Phu Rubber Joint Stock Company (code: DPR) achieved net revenue of VND 482 billion in the last quarter, an increase of 38% compared to the same period last year. The gross profit margin was 38%. Net revenue for the first nine months reached VND 886 billion, an increase of 15%.

Another company that increased its net revenue by 50% in Q3 2025 is Phuoc Hoa Rubber Joint Stock Company (code: PHR), reaching VND 617 billion. The gross profit margin in Q3 was also at 24%.

For Tay Ninh Rubber Joint Stock Company (code: TRC), although net revenue in Q3 2025 only increased by 8%, the cumulative revenue for the first nine months reached VND 597 billion, an increase of 31%. The gross profit margin for the third quarter was 37%.

Profit margins of listed rubber companies - Data: Compiled from financial statements.

Large rubber companies listed on the stock exchange have achieved an average of 102% of their revenue targets and 116% of their profit targets after just 9 months.

Due to a global supply shortage, the export price of rubber in the first 10 months of the year reached US$1,758 per ton, an increase of 7.4% compared to the same period last year.

In addition, Vietnam's natural rubber industry is also seizing opportunities from the relocation of foreign tire factories amidst the trade war.

Phu Hung Securities predicts that tire manufacturers will continue to increase production capacity in Vietnam during the 2026-2030 period, especially to serve the EU market. In November, the EU officially launched an anti-subsidy investigation into passenger car and light truck tires from Chinese manufacturers, following an anti-dumping investigation launched in May.

The rubber industry also benefits from the strong growth of the domestic automobile manufacturing and assembly industry, with the expansion and new participation of VinFast , Skoda, Omoda & Jaecoo, and Kim Long Motor.

Currently, most new vehicles assembled in Vietnam are electric or hybrid vehicles, requiring a more specialized tire structure than conventional vehicles. Large listed companies will be the candidates to meet these stringent material requirements.

Extraordinary income from land compensation

A distinctive feature of natural rubber businesses is their high after-tax profit margin, thanks to revenue sources outside of their core business operations.

Tay Ninh rubber recorded a growth rate of 49% in Q3 2025. Dong Phu rubber and Phuoc Hoa rubber also achieved 32% and 43% respectively.

In the third quarter of 2025, Dong Phu Rubber recorded over 21 billion VND in financial revenue and nearly 11 billion VND in income from other activities. Meanwhile, Tay Ninh Rubber recorded over 47 billion VND in other income from the liquidation of fixed assets, equivalent to nearly 53% of its gross profit.

Phu Hung Securities assesses that listed rubber companies have positive prospects from increased income derived from land compensation. By the end of 2025, a series of industrial park projects such as Hiep Thanh (Tay Ninh), Long Duc 3 ( Dong Nai ), Bau Can - Tan Hiep (Dong Nai)... will be started, creating momentum for income growth for companies in the period from the end of 2025 to 2027.

Businesses are exploiting large areas of rubber plantations. Dong Phu Rubber has over 16,700 hectares, Tay Ninh Rubber owns over 7,000 hectares, and nearly 6,500 hectares of rubber are located in Cambodia.

In addition, Dong Phu Rubber, together with Binh Phuoc Rubber Joint Stock Company and Nam Tan Uyen Joint Stock Company, established Bac Dong Phu Industrial Joint Stock Company in 2009, managing the two industrial parks of Bac Dong Phu and Nam Dong Phu.

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Source: https://tuoitre.vn/he-lo-mo-vang-bi-nha-dau-tu-lang-quen-doanh-nghiep-lai-deu-dan-hon-20-202512101425459.htm