Inside a bag factory of An Phát Bioplastics JSC. — Photo tinnhanhchungkhoan.vn

HÀ NỘI — The global spread of COVID-19 has had an insignificant impact on An Phát Bioplastics JSC’s performance in the first three months, shareholders were told on Wednesday.

According to An Phát Bioplastics’ general director Nguyễn Lê Trung, bag production has not declined so far this year as the company produces bags for the food sector – in which market demand is still stable.

Total production was up 7.6 per cent year on year. In February, production was up by 956 tonnes and revenue from bag exports rose VNĐ10 billion (US$427,460) to VNĐ358 billion, Trung said at the annual shareholders’ meeting.

The pandemic has shut down many plants in China while market demand stays high, so the company has received orders from foreign sellers for consumer goods, Đinh Xuân Cường, a member of the board of directors, said.

The company is also well-known for plastic production. Oil products are key materials for its production, but oil prices should not affect the firm’s plastic output.

Oil prices have tumbled about 60 per cent since the beginning of the year as the pandemic has increased worries about a global economic recession, leading to the collapse of oil prices.

The company has low inventory of plastic output, while the decline in the prices of oil, as a key production material, has helped the company lower selling prices, Cường said.

Trung was confident the firm would reach its earnings targets set for 2020 and the pandemic will have little impact on its operation.

In 2020, An Phát Bioplastics plans to record VNĐ10 trillion in total revenue, unchanged from 2019’s figure.

But post-tax profit is forecast to rise 12 per cent on-year to VNĐ550 billion in 2020.

The company in 2019 earned VNĐ9.26 trillion in total revenue and VNĐ491 billion in total post-tax profit, up 15.5 per cent and 131 per cent on-year.

An Phát Bioplastics also wants to make a 15 per cent dividend payment for 2020.

The company this year will buy back 25.7 million shares and sell the shares to a strategic investor.

Shareholders have also approved the company raising the foreign ownership cap to 100 per cent and allowing the parent firm – An Phát Holdings JSC – to up its stake to maximum 65 per cent from 48.08 per cent without making a public offer.

An Phát Bioplastics shares (HoSE: AAA) lost 1.9 per cent to trade at VNĐ10,400 apiece on Thursday. — VNS