AN PHAT PLASTIC (AAA): PRODUCTS EXPORTED TO US ARE NOT SUBJECTED TO ANTI-DUMPING DUTY INVESTIGATIONS
On March 28, 2018, the US Department of Commerce announced the initiation of anti-dumping duty (AD) and countervailing duty (CVD) investigations on imports of laminated woven sacks made of one or more plies of fabric consisting of woven polypropylene strip and/or woven polyethylene strip from the Socialist Republic of Vietnam (Vietnam). The US International Trade Commission (ITC) is scheduled to make its preliminary injury determinations on or before April 23, 2018.
The merchandises covered by these investigations are laminated woven sacks made of one or more plies of fabric consisting of woven polypropylene strip and/or woven polyethylene strip with HS codes namely 6305.33.0040, 3917.39.0050, 3921.90.1100, 3921.90.1500, 3923.21.0080, 3923.21.0095, 3923.29.0000, 4601.99.0500, 4601.99.9000, 4602.90.0000 and 5903.90.2500. These products are not in AAA’s current focus or in AAA’s expansion plan. Additionally, our key export markets are EU and Japan. Although we plan to expand exports to the US market in near future, the expected export items do not fall into the investigated product list. Hence, we can confirm that there is no impact from these investigations on AAA's business in 2017.
Established as a small-scale business, after only 15 years of development, currently AAA’s total capacity of seven factories has reached 8000 tons/month, making us the No. 1 in Southeast Asia for plastic packaging manufacturing. However, we will not stop there, our objective for the coming periods is to maintain growing momentum, achieving 1 billion US dollars revenues by 2025, expanding environmental friendly products, creating sustainability for society and enhancing value for shareholders.
In March 2018, AAA was granted the Certificate of stock issuance registration and in April AAA has been completing the procedures to increase contributed capital for investing in laminated packaging and high-tech injection molding factory. These products are expected to earn higher profit margins than current ones, contributing to sales and profit growth of AAA in coming years. Considering the potential of upcoming projects, in 2018 AAA confidently set a high growth target with sales of VND6,000 billion and after-tax profit of VND330 billion, up 47% and 25.5% respectively compared to 2017’s results.
In trading sections of the 3th and 4th of April, AAA’s price jumped back after falling sharply for a series of six sessions. The stock price increased by over 17% and closed on the 4th of April at VND26,500. The rebound of the stock price showed a more optimistic view of investors on such undervalued stock having a good fundamental story.