An Phat Plastic and Green Environment Joint Stock Company (Ticker: AAA) has just announced the results of exercising the right to buy additional shares in AAA’ share offering in April. The investors have registered and paid to buy 82 million shares issued, equivalent to 98.2% of the shares offered. AAA’s BOD also announced plans to distribute shares not yet fully sold. Thus, AAA has successfully raised VND1,170 billion in stock market for expanding business activities in coming periods.
Thanks to this share offering, AAA has raised its market capitalization to nearly VND3,300 billion (equivalent to nearly USD150 million), which enables AAA to meet the requirements to be in the portfolio of stocks that foreign ETF funds invest in Vietnam. Recently, there have been numerous foreign investors who are interested in AAA and have increased their ownership in AAA. The current room for foreign ownership in AAA is estimated at over 25%, which surely is a factor attracting investment flows from outside Vietnam and interested in AAA.
Due to its core business of exporting of mono layer packaging for large suppliers in Europe, Japan, US,…AAA has not had much opportunity to promote its image to the global financial market. In order to enhance AAA’s position as the largest mono-layer packaging manufacturer in Southeast Asia and introduce the opportunity to invest in AAA to foreign investors, recently AAA has attended various investor forums for emerging and frontier markets in Dubai, Bangkok and the latest in Colombo, Sri Lanka. In Colombo, AAA participated in private meeting with 12 investment funds from EU, UK and Japan… namely FundSmith (EUR 14 billion), Lazard Asset Management (USD 226.1 billion), Nordea (EUR 216.5 billion) ), Sumitomo Mitsui Asset Management ($ 102 billion), … to help investors better understand AAA’s business strategy as well as growth potential.
Not only does AAA seek for new potential foreign investors, it also takes into account the benefits of existing shareholders by maintaining favorable cash dividend policy. Despite continuous increase in capital expenditure for business expansion (operating the No.6 Factory in 2016, the No.7 Factory in 2017 and No.8 and No.9 Factory later), AAA has strived to maintain a cash dividend of VND2,000 per share and produce an attractive dividend yield of over 10% per share.
Targeting maximizing shareholders’ benefits, the company has accomplished its every ambitious plan since listed. In 2018, AAA aims to reach consolidated sales of VND6,000 billion and consolidated net profit of VND330 billion. AAA’s General Director, Mr. Nguyen Le Trung, was confident in AAA’s ability to complete the business plan in 2018 and ensure the cash dividend payment as planned by the 2018 General Meeting of Shareholders. The core business of mono-layer packaging for AAA continued to show strong growth in the first quarter of 2018, with sales up 40% yoy and stable gross profit margin.
Starting as a VND500 million company, after only 15 years under the leadership of three founders namely Mr. Pham Anh Duong, Mr. Nguyen Le Trung and Mr. Pham Hoang Viet, AAA has made impressive growth with total assets of nearly VND5,000 billion for the time being. Also, AAA is one of the few private enterprises that contribute significantly to Vietnam’s export activities, provide foreign exchange inflow, generate stable employment for more than 2,000 employees and provide income for the local government. Not to be overwhelmed by its achievements, AAA has set an ambitious goal of $1 billion of sales by 2025 through expanding business activities to higher value-added and environmentally friendly products, making AAA the largest eco-friendly plastic manufacturer in Vietnam and the region.
