According to data from World Steel, steel price in the long term is expected to increase to 600 USD/ton as world crude steel output continues to record a downward trend in November 2021. Accumulated in the first 11 months of 2021 in Vietnam market, hot rolled coil sales reached 6.5 million tons, up 75.5% over the same period. Besides, sales of metal-plated and color-coated corrugated iron reached nearly 5 million tons, up 38% over the same period.
With the active in market expansion and production capacity enhancement, Phuong Anh International Joint Stock Company (UpCOM: PAS) continues to record growing business results in Q4/2021. According to the Financial Statements of Q4/2021, the 2021 Revenue recorded VND 1,124 billion, up 44% over the same period mainly from the distribution of high quality product such as Coated Steel, Cold Rolled Steel, Carbon steel and Stainless Steel for Industrial Zone and FDI Customers. The low cost of inventory has contributed to the decrease in Cost of Good Sold. Gross profit reached VND 104 billion, a sharp increase of 208% compared to 2020 with a gross profit margin of 9%. The strategy of minimizing costs to overcome the Covid-19 period has boosted Pre-tax profit (PBT) to reach VND 79 billion, 11 times higher than the same period, completing 163% of the annual plan. Profit after Tax for the whole year of 2021 reached VND 63 billion, up 1,200% over the same period, EPS rose to VND 2,238/share.
Source: PAS
As of December 31, 2021, PASs Total Assets recorded VND 696 billion, increased 22% compared to the beginning of the period, of which Short-term Assets reached VND 520 billion, 35% higher y-o-y. Cash and cash equivalents were recorded at VND 9 billion, increasing sharply compared to the beginning of the period to meet the demand for steel purchasing in appropriate periods. Inventories increased by 58% because PAS actively increased the proportion of Steel during the period of slight decrease in steel prices recently. Long-term work in progress reached VND 2.5 billion, mainly the construction cost of Phuong Anh Metal Cutting with a capacity of 60,000 tons/year, which will come into operation in February 2022. Total Short-term and Long-term liabilities remained stable at VND 212 billion. As a result, the ratio of Debt/Total Assets and Debt/Equity reached 0.31 and 0.6 times respectively, a sharp decrease compared to the beginning of the period.
Source: PAS
Growth highlights from real estate projects
Besides the traditional steel production, PAS realizes ambition in investing in the Real Estate project in the strategy of becoming one of the leading Multi-industry Enterprises. In November 2021, PAS has simultaneously implemented two outstanding projects in Da Nang City, including the apartment project combined with the commercial center in Le Duc Tho with a total area of 4,300 m2 of residential GFA. High-rise building on Hoang Sa street has land area of 1,052 m2. Located in a prime location along the central coast of Da Nang, projects are developed by Western Homes and famous design consulting companies: Dark Horse, 10Design, INNO, Vietnamese Architecture, Nageco. These are experienced units within the industry and have many years of cooperating with leading corporations in Vietnam. The above 2 projects have been opened for sale and are expected to contribute significantly to PAS's Revenue and Profit in 2022.
Le Duc Tho Project – Da Nang
Hoang Sa Project – Da Nang
World steel demand continues in an uptrend when many countries have approved and accelerated the progress of infrastructure construction such as the US and India which approving public investment packages of USD 1,200 billion and US 1,350 billion, respectively. This trend is expected to last until the end of the first half of 2022, which will promote Vietnam's Steel Enterprises to increase exports. Besides, the promotion of infrastructure development and the restart of Domestic Real Estate projects will boost Steel demand as well Steel prices. With a large low cost inventory, a wide distribution network and the put into operation of Phuong Anh metal cutting center with a capacity of 60,000 tons/year, PAS's business continues to maintain strong growth momentum in the year 2022.
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Investor Relations Department
Email: info@phuonganhgroup.com.vn
