Masan High-Tech Materials’ management board answer questions from shareholders and investors at the company’s annual general meeting held in Hà Nội on April 12. — Photo courtesy of the company

HÀ NỘI — Masan High-Tech Materials (HNX-UpCOM: MSR, MHT) has set a target of net revenue growth of over 50 per cent in 2021, attributing to the H.C. Starck Tungsten Powders integration for the whole year, higher sales revenue and selling prices on the market.

The better price and bigger revenue will enable Masan High-Tech Materials to achieve earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth more than 100 per cent over last year, and strongly backed by the strict cost control in lean production activities.

Attributable net profit after tax is expected to be at appropriately VNĐ200 - 400 billion (US$8.66 -17.3 million).

Speaking at its annual general meeting with the theme of “Go Global” held in Hà Nội on April 12, Craig Richard Bradshaw, general director of Masan High-Tech Materials, shared: “In 2020, Masan High-Tech Materials completed the acquisition of H.C. Starck Tungsten Powders and forged a strategic alliance with Mitsubishi Materials Corporation through an investment of $90 million from a Japanese Group, equivalent to a 10 per cent stake in MHT.

“The transactions have validated the transformation of Masan High-Tech Materials into a vertically integrated high-tech tungsten platform and asserted its position as global scale high-tech materials producer. Having overcome all the challenges and fluctuations impacted by COVID-19, Masan High-Tech Materials has promptly responded, tirelessly expanded its portfolios, flexibly meet customer needs and particularly manage cash flow efficiently.”

Its net revenues in 2020 were up 55 per cent year on year at VNĐ7.291 trillion, mainly attributed to the consolidation of H.C. Starck Tungsten Powders. Thanks to the copper concentrate export permit, copper product revenue in 2020 increased against 2019, with a total 82,000 tonnes of copper concentrate exported under the export permit granted to the company.

Masan High-Tech Materials sustained its throughput in the Núi Pháo Processing plant at 3.87 million tonnes, up by 2.3 per cent against 2019.

The processing plant had an overall availability of 95.4 per cent, up 1.3 per cent over 2019. In a production sense, contained copper production was up 13 per cent on prior years while tungsten equivalent production was up 68 per cent, thanks to the integration of the H.C. Starck Tungsten Powders. 

From a cost perspective, the focus and drive on lowest cost production continued in 2020 with the team delivering an overall cash cost reduction in operating costs of $16.5 million compared with 2019. Of particular note was a 14.7 per cent improvement year on year in the unit cost per tonne milled in the Núi Pháo Mining operation.

Speaking about its strategic vision for the 2021-25 , Danny Le, chairman of the board of directors of Masan High-Tech Materials, said “In 2021, we shall continue to work with customers to relentlessly develop the platform for tungsten high-tech materials.

“In parallel to seeking the opportunities to further develop tungsten recycling platform, Masan High-Tech Materials shall focus on expanding the recycling of other materials such as Cobalt, Tantalum and Molybdenum.

“Recently, H.C. Starck Tungsten Powders (a subsidiary of Masan High-Tech Materials) has received a funding of 800,000 Euro ($952,879) from German government to develop a new Cobalt recycling technology.”

The company aims to become a partner of choice to high-tech industries, where its products are a key component in evolving and shaping the future of the world, he said.

In early 2021, it has seen positive signs from customers with steadily increasing volumes and certainly higher metal prices. With ongoing investment in infrastructure projects and renewal projects by respective world governments, increasing spend on renewables, electric vehicles, fuel cell technologies, return of automotive manufacturing demand and general engineering, the demand outlook for its suite of products looks strong, the company said. — VNS