The ‘ business ‘ of the satellite Honda was 430 billion valuation when on the floor

More than 70% of the revenue of the Hanoi Plastic came from the provision of spare parts, plastic parts for Honda Vietnam.

According to information from the Hanoi securities trading center, the Hanoi Plastic joint stock company will register the transaction 6.5 million shares on the UPCoM from 8/9 stock code NHH. With a starting price of 66,000, estimated the company’s capitalization will reach nearly 430 billion in the first session.

Established last may, Hanoi Plastic 10/2008 with 65 billion capital works in the auxiliary industry and join the parts supply chain for many big brands.

Hanoi plastic is rare content businesses participated in the spare parts supply chain for many big brands.
The strength of the company is production of plastic details in making motorbikes and cars, and has become a partner to provide spare parts for many large businesses in the industry such as Honda, Toyota, Ford, SYM, Piaggio. In addition the Hanoi Plastic also offers details, accessories for Panasonic, LG group from Japan or Vietnam as Lixil Group, Housetec or Hashimoto.

According to a disclosure of information, which have foreign elements make up 90% of the clients of the company. In 2016, the revenue of the Hanoi Plastic reached more than 900 billion, with 70% of revenue comes from Honda Vietnam. Profit after tax recorded more than 74 billion, with the rate of return on equity (ROE) reached 114%.

However, despite belonging to the lucrative rate high but operations of the Hanoi Plastic still reveal the inferior elements of sustainability. According to the rating of this unit leadership, product offers for Honda Vietnam make about revenue is becoming a risk to the company when the partner’s purchase policy change.

Besides, the problem of competing with the business sector increasingly fierce yet there are reasonable solutions. According to a report of the Hanoi Plastic Board, foreign businesses are currently shifting purchases from China to Vietnam due to the pricing policy of China increased volatility, but the partners back pressed Vietnam to meet business cheap as items their previous targets in China, be detrimental to the company.

The current principal products of the Hanoi Plastic is the more plastic to assemble motorcycles, however currently the market motorcycles also are entering saturated stage should the jewelry demand will decline, thus affecting the needs of partners of the company. 

The increasing difficulties in normative business plan in 2017 when the Board of Directors proposes the level of reduced revenue 5.5% 850 billion with profits after tax reached 44 billion, down almost 40%.

“The situation of production and business operations of the company the year 2016 had more difficult as predicted, but that is just the first step, in 2017 also continue much more difficult. Deep discount that is required of the client, Honda Vietnam continues to add plastic type conversion policy low prices in order to achieve the target reduction of 32% of the components “, the report of the Board at the annual session of 2017.

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