Thursday, April 2 2020

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DGC's exports see no big influence from Japan and Korea

Update: March, 05/2020 - 11:41

 

Workers of Đức Giang Chemical Group JSC (DGC) pack products in the Hà Nội-based factory. The firm has not yet experienced any negative changes from the two markets of Japan and Korea recently. — Photo cafef.vn

HÀ NỘI — Although it exports a large number of chemical products to Japan and the Republic of Korea, Đức Giang Chemical Group JSC (DGC) has not yet experienced any negative changes from the two markets.

According to the Bank for Investment and Development of Vietnam Securities Joint Stock Company, DGC’s main products of yellow phosphorus to Japan and South Korea accounted 25 per cent of its total revenue in 2018.

BSC said while the two markets were impacted by the Covid-19 epidemic, exports of the firm to those markets have not changed much, with short-term orders still placed.

With the belief that Daegu in the Republic of Korea, whose textile firms use a large portion of DGC-imported phosphorus, would control the epidemic better than China, the securities firm thought DGC’s revenue from the market would not decrease much. 

If there was an influence from the two markets, “the turnover from the two markets would decrease by about between 10 and 15 per cent,” said the securities firm.

With this estimate, the yellow phosphorus output of DGC would fall 7,300 tonnes and its gross profit is estimated to decrease by three per cent to VNĐ40 billion (US$1.7 million) this year.

In 2019, DGC's revenue reached more than VNĐ5 trillion, down 16.4 per cent from 2018. Its profit after tax was reported at VNĐ571 billion, down 34.57 per cent respectively.

Established in 1963 as a State-owned enterprise in Hà Nội, DGC produced chemicals and washing powder in Việt Nam. Equitised in 2004, the firm filed for listing on the HNX in early November with a registered volume of more than 129 million shares.

Yesterday, each DGC share closed at VNĐ24,300. The chemical firm also planned to have the annual general shareholders meeting on March 28. — VNS

 

 

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