Since the beginning of the year, GVR shares of Vietnam Rubber Industry Group - JSC have surged by 72%, approaching their highest point in the last three years.
Most notably, on June 26th, this stock surged to its ceiling price of 35,950 VND per share. Trading volume also spiked to 10.3 million units, 2.2 times higher than the average volume over the past month.
Entering the morning trading session on June 27th, GVR shares continued their upward trend, rising approximately 1% to around 36,300 VND per share. The corresponding market capitalization reached 145,200 billion VND (5.6 billion USD), an increase of 61,200 billion VND compared to the beginning of the year.
The price movement of GVR.
In addition, GVR's business results and future business strategies have also contributed to the stock's surge.
Benefiting greatly from converted rubber plantation land.
During the period 2021-2025, in addition to focusing on completing legal procedures and implementing investment projects for industrial parks/clusters that have received investment approval and are currently seeking approval with an area of 2,921 hectares, the Vietnam Rubber Industry Group announced that it will continue to develop an additional 16,592 hectares. Of this, the group will be the main investor in 10,997 hectares in Tay Ninh, Binh Duong , Dong Nai, and Ba Ria-Vung Tau provinces; and its subsidiaries will invest in 5,615 hectares.
Previously, in 2023, VRG focused on developing many large-scale industrial park projects such as the Nam Tan Uyen Industrial Park expansion project, phase II, covering 344 hectares (Binh Duong); the Rach Bap Industrial Park expansion project, covering 360 hectares (Binh Duong); the industrial park infrastructure investment and operation project covering 317 hectares ( Binh Phuoc ); the Minh Hung III Industrial Park expansion project, covering 577.53 hectares (Binh Phuoc); and the Hiep Thanh Industrial Park phase I project, covering 95.17 hectares (Tay Ninh)...
According to KBSV Securities Company's assessment, GVR has significant potential from its large converted rubber land reserves. From the end of 2023 to the present, the three provinces where GVR owns large rubber land reserves – Tay Ninh, Ba Ria – Vung Tau, and Binh Phuoc – have had their provincial planning approved by the Prime Minister, with a total converted area of nearly 25,000 hectares. In addition, Binh Duong and Dong Nai are also awaiting final planning approval.
As a result, KBSV expects the pace of land conversion and industrial park project implementation by GVR to be accelerated. This large rubber plantation land, once converted into industrial parks and infrastructure, will ensure a long-term cash flow from compensation and industrial park leases for businesses.
KBSV Securities believes that the land allocation for Nam Tan Uyen 3 Industrial Park – located in the key economic zone of Binh Duong – at the end of May has created short- and medium-term growth potential for GVR, expected to contribute to GVR's business results from 2024.
According to preliminary estimates by Nam Tan Uyen, the Nam Tan Uyen 3 project is expected to generate cash flow of over 600 billion VND/year and after-tax profit of approximately 400 billion VND/year until 2027-2028 after being put into operation, projected from 2024.
In terms of potential, according to a report by An Binh Securities Joint Stock Company (ABS Research), the rubber segment is expected to become more positive in 2024 and 2025, along with the promising industrial park real estate segment, which will be the main factors driving up GVR's revenue.
Benefiting from rising rubber prices, the Vietnam Rubber Industry Group, despite operating in the agricultural sector, has a bright financial picture. As a result, the company has abundant funds, which it can invest in various fields, including real estate, etc.
In 2012, GVR recorded record revenue of VND 26,457 billion and peak profit of VND 6,596 billion. Even after more than 10 years, it has yet to surpass its own record.
However, during the period from 2013 to 2015, rubber prices did not increase as expected, and both GVR's revenue and profits plummeted. Accordingly, net revenue reached VND 15,069 billion, and profit reached VND 2,016 billion - a decrease of 43% and 69% respectively compared to the same period in 2012.
With soaring business results in 2021, the Vietnam Rubber Industry Group came close to breaking its business record. However, before it could surpass that record, the rubber industry was affected by declining rubber prices in the following years, leading to a decline in production and business.
Accordingly, despite a 28% increase in net profit in the last quarter of 2023, driven by financial income and other profits, GVR's profit for the whole year 2023 still decreased by 33%, to approximately VND 2,585 billion, due to difficulties in its core rubber latex business.
In the first quarter of 2024, the company recorded net revenue of VND 4,585 billion, an increase of nearly 11% compared to the same period last year. Of this, the majority of revenue came from rubber production and trading activities, totaling VND 3,390 billion, accounting for 74% of total revenue; net revenue from wood processing was VND 540 billion; and net revenue from real estate and infrastructure business was VND 142 billion.
After deducting expenses, GVR reported a profit of VND 650 billion in the first quarter of 2024, a decrease of 14% compared to the same period last year .
Source: https://www.nguoiduatin.vn/huong-loi-doi-duong-co-phieu-gvr-bay-cao-a670354.html
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