Want to be in the loop?
subscribe to
our notification
Business News
TEXTILES FIRM RACE TO LIST ON THE MARKET
Many textile and garment enterprises have improved operations to prepare themselves for the list on the stock market. Sông Hồng Garment JSC debuted on the Hồ Chí Minh Stock Exchange (HoSE) in late November by listing more than 47.6 million shares with the code MSH.
The company started trading at the price of VNĐ45,000 (US$2) per share, making its market capitalisation up to VNĐ2.14 trillion ($95.25 million) on debut day.
As of October 1, the company had 511 shareholders including four institutional investors and 507 individuals.
Sông Hồng, established in 1988 in Nam Định Province, has grown from a small company into one of the country’s leading garment and bedding manufacturers, with nearly 11,000 employees and more than 20 factories.
It makes products for global brands such as Nike, Levi’s, Calvin Klein, Tommy Hilfiger, DKNY, Karl Lagerfeld, Hurley, Converse, Jordan, Columbia Sportswear, Gap, Bugatti, Dillards, and Express.
It produces and exports 60 million products a year, including jackets, pants, shirts, dresses, t-shirts and polo neck shirts.
Sông Hồng’s bedding products brand has been one of the leaders in the domestic market for the last 10 years and has expanded exports to markets such as Japan and South Korea.
In the first nine months of this year the company reported profit before tax of VNĐ335.5 billion ($14.6 million) on revenues of nearly VNĐ3 trillion ($130.4 million), 107 per cent and 21 per cent up year-on-year.
Since 2015 it has paid cash dividends of 45 per cent every year. A 35-40 per cent payout is planned for 2018 and 35 per cent for 2019.
It plans to expand capacity by 30 per cent from 2020 by investing in another production facility in Nam Định Province.
The Hà Nội Stock Exchange (HNX) approved the listing of more than 15.4 million shares of Det May 7 JSC (DM7) on the Unlisted Public Company Market (UPCoM) in late October with reference price of VNĐ11,800 per share.
DM7’s main business is producing ready-made apparel and textile products like yarn, string and mesh. In the first half of 2018, DM7 achieved revenue of more than VNĐ431.4 billion ($18.7 million) and after-tax profit of VNĐ20.7 billion ($900,000), up respectively by 42.8 per cent and 85.4 per cent over the same period in 2017.
The company plans to pay 10 per cent dividend in 2018.
Ealier on July 18, HNX officially put more than eight million shares of Investment and Development Joint Stock Company (TDT) on the northern stock exchange with a total listed value of VNĐ80 billion ($3.5 million) and reference price in the first trading day of VNĐ15,000 (65 US cents) per share.
Since its establishment, TDT’s revenue has mainly come from the simple outsourcing activities - Cut, Make and Trim (CMT), meaning that the company is just responsible for cutting the fabric, and making and trimming the garments.
Since 2016, the company switched their production methods to free on board (FOB) method, allowing the enterprise to involve in the selection of input material with the materials imported from an unit appointed previously by the firm’s partner.
Since they applied the new production method, revenue of TDT has come mainly from exports. Domestic sales accounts for only 6 to 18 per cent, generating mostly from the outsourcing activities (CMT) for domestic partners like Đức Giang Garment Corporation, Việt Sun Investment JSC and Athena JSC.
Last week, Bình Minh Garment Joint Stock Company put more than 5.29 million of its shares (BMG) with the total registered transactions value of VNĐ52.9 billion ($2.3 million) on the UPCoM.
The company was formerly known as Bình Minh garment factory established in 1975. At that time, the factory had a 2,500-metre factory, about 200 machinery and equipment and more than 300 workers. Its products were mainly exported to Eastern Europe and the Russian markets.
In 1999, the company transformed itself into a joint stock company. As of 2018, Bình Minh had charter capital of VNĐ52.9 billion ($2.3 million).
Currently, the company has more than 2,500 employees, three branches with a factory area of more than 40,000 metres in HCM City, Hà Nội, the southern province of Bình Dương and the northern province of Hải Phòng, with more than 3,000 machines and equipment.
Bình Minh Garment processes garment products under FOB method, partnering with various brands like Owen, Uniqlo, Umbro, Vanhausen, Fila, Lee, Limeted too, American, Eagle and VHF. The main exported products of the company include high-end shirts, sportswear and jackets of all kinds, exported to Japan, America, Europe and other countries
BMG also has its own brands for domestic consumption named Gendai, providing shirts, t-shirts and sportswear.
As of late December 2018, Bình Minh Garment completed 76.1 per cent and 77.8 per cent of the revenue and after tax profit plans for 2018.
Source: VNS
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.