The recently successful Initial Public Offering (IPO) is just the first step of xổ số miền nam hôm nay (Ticker symbol: APH) in the company’s plan to mobilise capital for AnBio compostable material manufacturing plant. The project will put APH on the list of one of the few enterprises in the world such as BASF, Novamont, NatureWorks, Total Corbion … that capable in producing compostable materials.
- APH – xổ số miền bắc hôm nay noteworthy stock IPO during Covid-19 outbreak
In an interaction with media, Mr. Dinh Xuan Cuong, Vice Chairman and Chief Executive Officer (CEO) of APH proudly said that this will be xổ số miền bắc hôm nay first compostable material manufacturing plant in Vietnam that would be able to supply “green” materials for both domestic and international production.
When AnBio project is completed in 2022, APH will fully take xổ số miền bắc hôm nay initiative in production inputs, while reducing product’s cost to create more competitive advantage. In xổ số miền bắc hôm nay context that xổ số miền bắc hôm nay market of compostable products is expected to accelerate in xổ số miền bắc hôm nay next few years to replace disposable plastic products, this is considered an important strategic move of xổ số miền bắc hôm nay largest green materials manufacturer in Vietnam.
To have a more comprehensive view, xổ số miền bắc hôm nay reporter had an interview with xổ số miền bắc hôm nay Vice Chairman and CEO of APH.
As seen, xổ số miền bắc hôm nay registration for your last IPO auction was nearly5 times higher than your expectation , xổ số miền bắc hôm naybidpriceis 2 times higher than initial one. Maybe, bothof you & BoD were really surprised with this result?
– We were not surprised with xổ số miền bắc hôm nay auction results, but we impressed with xổ số miền bắc hôm nay number of auction registrations that nearly 5 times higher than xổ số miền bắc hôm nay selling volume. Prior to xổ số miền bắc hôm nay IPO, many investors who participated in this auction had earlier discussed and worked with APH. Therefore, we foresaw xổ số miền bắc hôm nay price they were willing to pay.
In xổ số miền bắc hôm nay recent IPO, APH has been highly priced. It can also be seen that many investors are interested in APH’s stock and AnBio compostable material manufacturing plant. That is a good sign.
Calculation methods indicate that the book value of xổ số miền nam hôm nay as of December 31, 2019 at only VND 15,300, while other calculating methods point out market value of xổ số miền nam hôm nay at around VND 23,800 per share. So, in your opinion, what are the reasons for investors to pay more than VND 50,000 per share, much higher than the valuation of the other companies in the same industry?
-According to xổ số miền bắc hôm nay statistics of xổ số miền bắc hôm nay listing consultant, xổ số miền bắc hôm nay average P/E ratio of xổ số miền bắc hôm nay domestic and regional plastic industry is about 11.17x. With 2019 EPS is VND 3,433 per share, based on xổ số miền bắc hôm nay company’s P/E ratio, xổ số miền bắc hôm nay valuation of APH is VND 38,344 per share. However, I believe that investors buying a stock not only based on historical data but also its future prospect. Therefore, when investors paid more than VND 50,000 per share, it represents investors’ confidence in xổ số miền bắc hôm nay growth prospects of APH as well as our subsidiaries.
Though securities market now has recovered slightly, but it is still very unpredictable. In xổ số miền bắc hôm nay past, there were many successful IPO with high bid prices, but when listed, xổ số miền bắc hôm nay stock price will plunge in xổ số miền bắc hôm nay first few session. What is your opinion on this matter?
-Listing immediately after xổ số miền bắc hôm nay IPO is an usual and common activity in developed stock markets to mitigate xổ số miền bắc hôm nay risk after investors participating in xổ số miền bắc hôm nay IPO, so that they can trading stocks as soon as possible.
APH aims to issue and prioritize majority of shares for institutional investors who aim to hold stock for a long-term. We strongly believe that their long-term commitment with businesses will help reduce price variation.
In addition, when AnBio comes into operation, it will contribute significantly to xổ số miền bắc hôm nay company’s business results.
In stark contrast with other businesses, APH chose to IPO and listing at this sensitive period. In comparison with state-owned enterprise, it seems that equitization activities, IPOs will be delayed due to COVID-19. Sir, what is xổ số miền bắc hôm nay reason behind this scenery?
-We have a clear goal of raising capital for AnBio plant. Capital from xổ số miền bắc hôm nay IPO will be retained to increase xổ số miền bắc hôm nay surplus and value for xổ số miền bắc hôm nay company. This project is indispensable and crucial in APH’s development plan, thus it is suitable to implement at this time.
Moreover, COVID-19 has been well controlled in Vietnam. Vietnam has also become a bright spot in xổ số miền bắc hôm nay world after successfully contained xổ số miền bắc hôm nay pandemic. xổ số miền bắc hôm nay fewer businesses listed at this time, xổ số miền bắc hôm nay more prominent we become to lure more investors.
During xổ số miền bắc hôm nay time combating COVID-19, we still ensure production and business activities. As a result, when xổ số miền bắc hôm nay pandemic is under control, APH is ready to welcome investors, especially foreign investors, who are increasingly considering Vietnam as an attractive destination.
Sir, as it is known that APH will spend 15.75 million shares to sell to strategic investors. Could you please reveal more information about potential investors as well as their strengths to support xổ số miền bắc hôm nay company in business operations and market expansion in xổ số miền bắc hôm nay future?
We spend majority of this issuance for strategic investors while targeting long-term financial investors.
Reputable and experienced long-term financial investors in developed and developing countries will bring long-term, stable financial support to us.
On xổ số miền bắc hôm nay other hand, strategic investors will offer recommendation about project implementation such as: implementing and working with contractor, reaching potential customers, expanding product consumption markets, technology and operation support.
Currently, APH is working with 7 investors, of which 5 are long-term financial institutions and two strategic investors. Investors are all from foreign countries like Korea, Japan, Germany and some multinational organizations.
- Strategic move to conquer North American market
Sir, as far as I know, APH Board of Directors has had many working trips in xổ số miền bắc hôm nay US to prepare for xổ số miền bắc hôm nay plan to develop market for compostable products. Could you reveal what has been achieved and xổ số miền bắc hôm nay company’s goal in xổ số miền bắc hôm nay coming time?
We consider xổ số miền bắc hôm nay US as a huge potential market for xổ số miền bắc hôm nay development of compostable products. APH has had many working trips with organizations in xổ số miền bắc hôm nay US, including strategic advisory firm xổ số miền bắc hôm nay Asia Group.
At present, we have established a company in xổ số miền bắc hôm nay US and we are forming plan to penetrate this market. In my opinion, social instability is temporary and xổ số miền bắc hôm nay impact of xổ số miền bắc hôm nay COVID-19 will not halt xổ số miền bắc hôm nay medium to long term growth trend of eco-friendly products here.
Sir, might you give an overview of xổ số miền bắc hôm nay attractiveness of compostable products market in Europe and xổ số miền bắc hôm nay US, where you have been selling your products?
-Our overseas market has expanded significantly, from 5 countries (in 2019) to more than 20 countries at present, including xổ số miền bắc hôm nay US, Canada and other European countries. This is a very potential market when these countries tend to switch gradually to environmentally friendly products. Since then, compostable products are perfect replacement.
According to research, in xổ số miền bắc hôm nay next 3-5 years, environmentally friendly products will account for 20-30% of total plastic products worldwide.
We have solved xổ số miền bắc hôm nay puzzle for compostable product price in best way. Therefore, in order to catch up with this global trend, we decided to invest in AnBio compostable plant, taking xổ số miền bắc hôm nay initiative in materials, reducing production cost and creating more competitiveness for APH. Many familiar customers in these markets now have shifted to our compostable products.
xổ số miền bắc hôm nay potential of xổ số miền bắc hôm nay North American market as mentioned is enormous. But this is also certainly a very competitive market. Sir, what do you think about xổ số miền bắc hôm nay opportunities & challenges for APH compared to competitors in this market?
-xổ số miền bắc hôm nay North American market is larger than both Europe and Japan. Moreover, we can see xổ số miền bắc hôm nay quick trend shifting to environmentally friendly products here.
At this moment, this market is competing for xổ số miền bắc hôm nay supply of environmentally friendly products in xổ số miền bắc hôm nay direction that benefit APH when we are one of xổ số miền bắc hôm nay few enterprises in xổ số miền bắc hôm nay world holding xổ số miền bắc hôm nay patent for manufacturing compostable materials.
Sir, you have just mentioned “xổ số miền bắc hôm nay patent for manufacturing compostable materials”, so what are xổ số miền bắc hôm nay outstanding features of this project?
-We will have raw materials self-supply for production from xổ số miền bắc hôm nay first to xổ số miền bắc hôm nay last stage instead of importing raw materials from aboard to manufacture finished products.
So, what role will AnBio play in APH production system?
– This will be xổ số miền bắc hôm nay first compostable material manufacturing plant in Vietnam that can supply and meet xổ số miền bắc hôm nay demand for both domestic and foreign markets. xổ số miền bắc hôm nay factory will completely change APH’s position, to be both a producer and a trader of green materials.
There have been a number of large partners in Vietnam coming to APH and questioning xổ số miền bắc hôm nay trade of AnBio compostable material. Our goal of becoming Southeast Asia’s largest bioplastic group is in xổ số miền bắc hôm nay near future.
Sir, according to xổ số miền bắc hôm nay calculation of xổ số miền bắc hôm nay investment project, what is xổ số miền bắc hôm nay internal rate of return (IRR) of this project? In comparison with other plastic and packaging projects that APH has invested, are xổ số miền bắc hôm nay profit margins superior?
-xổ số miền bắc hôm nay rate of return of xổ số miền bắc hôm nay project is 36% according to our estimates. Overall, this project is extremely important because it will help increase xổ số miền bắc hôm nay efficiency of subsidiaries by helping reduce input costs and increase profit margins. xổ số miền bắc hôm nay rate of return on a (consolidated) perspective of xổ số miền bắc hôm nay Group is much higher than previous projects.
We are currently importing materials from Europe, manufacture products and then exporting them back to Europe. xổ số miền bắc hôm nay raw materials self-supply will help APH save production costs about 30% for subsidiaries while xổ số miền bắc hôm nay parent company still enjoys a gross profit margin of 25-30% of this project.
- Difficulties provide a window of opportunity
Until now, we all know how COVID-19 has negatively impacted on xổ số miền bắc hôm nay world economy while America is one of xổ số miền bắc hôm nay most impacted countries and now concerns about xổ số miền bắc hôm nay second wave of COVID. Thus, APH may encounter many difficulties in xổ số miền bắc hôm nay coming time. Sir, will epidemics affect xổ số miền bắc hôm nay progress and investment plan of xổ số miền bắc hôm nay company?
– It can be said that COVID-19 influences our outreach activities and seeking new customers in this market. But xổ số miền bắc hôm nay North American development plan is a long-term one, and we believe that Covid-19 will soon be contained here. Furthermore, xổ số miền bắc hôm nay use of environmentally friendly products is an inevitable trend, so in xổ số miền bắc hôm nay long-term, there is nothing to be worried about.
Sir, can you disclose about xổ số miền bắc hôm nay business situation of xổ số miền bắc hôm nay two prominent subsidiaries (AAA and NHH) in xổ số miền bắc hôm nay first 6 months. Is xổ số miền bắc hôm nay influence of COVID-19 significant, especially on AAA’s international trade, or with NHH’s industrial supporting equipment production?-As we mentioned in xổ số miền bắc hôm nay media earlier, xổ số miền bắc hôm nay production of AAA has not decreased in quantity, especially xổ số miền bắc hôm nay compostable products segment is still growing because these are essential consumer products.
Supporting industry is also affected by Covid-19 due to some customers suspending production but we forecast to grow strongly in xổ số miền bắc hôm nay last 6 months.
What did APH Board of Management do to help subsidiaries overcome difficult times, especially to help them rebound when xổ số miền bắc hôm nay market recovers?
-I hold xổ số miền bắc hôm nay belief that “fire proves gold, adversity proves men “, we have nearly 20 years of experience in xổ số miền bắc hôm nay market, facing many challenges but we overcame those obstacles to grow. I think that, under any circumstances, difficulties provide a window of opportunity. xổ số miền bắc hôm nay recent successful IPO of APH is a testament to this. During tough times, we have been doing very well. So, there is no reason when xổ số miền bắc hôm nay market recovers, we could not do better.
Thank you very much.
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