|AnEco products are sold at supermarkets.|
Catch the wave of green consumption
AnEco products will be protected by law in the US market, and at the same time opens up opportunities for An Phat Bioplastics to carry out business cooperation projects, bringing a complete line of AnEco biodegradable products to US consumers as well as North American markets.
According to Mr. Nguyen Le Trung, General Director of An Phat Bioplastics, the wave of green consumption is spreading rapidly, opening up huge opportunities for the market. Therefore, green transformation will not only create growth in business results and create business value, but also help reduce operational risks, helping businesses adapt in a post-Covid world with a growing awareness of sustainable development issues.
AnEco fully biodegradable products have been researched and optimized by An Phat Bioplastics with qualified raw materials including corn starch, biodegradable plastic safe for human health PBAT, PLA.
Accordingly, AnEco products will completely decompose into water, CO2 and plant humus within a year in a normal landfill environment without industrial treatment. It is known that AnEco products have been exported to more than 20 countries such as the US, Italy, France, Australia.
Similar to An Phat Bioplastics, Century Fiber Joint Stock Company has also invested heavily in and implemented green projects aimed at building and developing green growth. In which, the project of producing recycled yarn has been implemented since 2016.
By 2020, recycled yarn accounted for 44.7% of the company’s total revenue, up 9.7% compared to 2019. According to Century Yarn Joint Stock Company, through the production of recycled fibers, the company has reused over 2 billion plastic bottles, contributing to protecting the ocean from plastic waste, which is one of the main environmental problems. Century Yarn Joint Stock Company expects that the proportion of revenue from recycled yarn will increase to 55.1% in 2021 and to 100% in 2025.
In addition, by the end of 2020, the Joint Stock Company has also installed rooftop solar power systems for both Cu Chi and Trang Bang factories. It is expected that after completing the installation, this system will meet about 10% of the company’s electricity demand, thereby saving about 10% of electricity costs and reducing about 10% of greenhouse gas emissions.
The consumption of biodegradable products has significantly contributed to the business results of An Phat Bioplastics. In the first quarter of 2021, the company recorded revenue of VND2,280 billion, up 45% over the same period in 2020. Profit after tax also increased by over 41%, reaching VND89 billion. An Phat Bioplastics’ management has set a target that the second quarter of 2021 will reach VND2,500 billion in revenue and VND120 billion in profit, up 138% and 162% respectively compared to the second quarter of 2020.
Along with the positive business performance, An Phat Bioplastics’ AAA stock was also rated positively by analysts. Specifically, SBSI Securities assessed that the company would benefit from increasing the rate of biodegradable packaging and maximizing industrial packaging production capacity, helping to increase profit margin. Accordingly, with great market potential, especially in Europe and the US, An Phat Bioplastics will take advantage of production advantages from raw materials to finished products to reduce costs and compete with major manufacturers in the world. SBSI forecasts that An Phat’s revenue in 2021 will grow by 20%, reaching VND8,895 billion and profit after tax at VND621 billion, 2.2 times higher than 2020.
The business results of Century Yarn Joint Stock Company also recorded positive results in the first quarter of 2021 with gross profit increasing by 18% to VND112 billion thanks to an increase in the proportion of recycled yarn sales. As a result, net profit in the period reached more than VND70 billion, an increase of 35% – marking a record quarterly profit since this company was listed in 2015. The market price of STK shares of Century Yarn also recorded received a growth rate of up to 50% since the beginning of the year, currently at around VND32,000/unit.
At the 2021 Annual General Meeting of Shareholders, the management of Century Yarn Joint Stock Company said that the 2021 strategy will focus on producing recycled yarns, increasing market share for firms and reducing waste in production by developing quality control processes and solar systems. The Century Yarn Board of Directors has also just approved the Resolution to invest in the Unitex synthetic fiber factory project in Tay Ninh to accelerate the production of recycled yarns and yarns with high added value. According to the assessment of organizations, recycled yarn has the potential to develop because well-known brands such as Nike, Uniqlo, Adidas, Walmart, Inditex, IKEA, H&M have been, are and will be committed to using this type of fiber. Meanwhile, Century Yarn is holding the Top 2 market share in Vietnam in terms of recycled yarn in 2020.
Similarly, at many other enterprises such as PAN Group, TH True Milk, etc., the implementation of sustainable development and green production strategies through circular economy models is also bringing many positive results in business efficiency as well as enhancing the value of the corporate brand.