Despite difficulties, Phuoc Hoa Rubber Joint Stock Company (PHR) has still maintained stability in revenue and enhanced its effectiveness in production and business, which is seen as a great effort of PHR. This has also shown the endurance of a brand name. 

This is a rubber latex-processing line at PHR

Standing firmly amid difficulties

One of PHR’s advantages is to have a competent workforce. Thanks to this, PHR has so far become a great business of Vietnam’s rubber sector and it is also the symbol of the spirit of overcoming difficulties of Binh Duong people and land.

In 2013, the whole sector faced difficulties, due to the price of rubber latex on continuous reduction estimated at a haft compared to 2012. Two thirds of PHR’s rubber area under exploitation reached a low productivity because of stunt and epidemic disease. This affected PHR’s plan on production and business. But, PHR managed to overcome difficulties, stabilize production and reach a great profit.

PHR last year tapped 19,195 tons of rubber latex with the average productivity of 2.02 hectare/ton. PHR also purchased more than 11,000 tons of rubber latex from the local small rubber plantations. Upon this, PHR sold 29,580 tons of finished rubber latex products and 937 tons of other rubber latex products with the average selling price of VND53.7mln/ton.

PHR’s total revenue in 2013 was estimated at VND1.864trillion, including US$35mln from export. Thanks to its good business, PHR reached VND371bln in post-tax profit, paid VND239bln for State budget. Although PHR’s profit in 2013 was only equivalent to 58% of 2012, but this was a considerable result of all staff herein.

Self-confidence in future

Over the past three years, the average selling price of PHR’s products was 2%-3% higher than price at other companies. This is because hi-quality rubber products like SVR CV50-60 account for 55% of PHR’s total products. Moreover, PHR is almost an only company of the sector with many CV50-60 products consumed, thanks to having a stability in the number of traditional clients.

Other optimistic information is that PHR’s dividend is still higher compared to other stock codes on the stock exchange. PHR’s dividend rate always reaches 10% every year. With a total of 71.3 million stocks, PHR spends VND215mln on annual dividend payment.

It is predicted that 2014’s rubber latex price finds it difficult to rebound amid the world economy with a slow recovery. But with its inner-force, PHR is still self-confident to put forward  its 2014 plan of selling 28,500 tons of various latex rubber products with VND211bln in post-tax profit.

Le Phi Hung, General Director of PHR said: “In the current period of the sector, PHR will make more efforts in production and business to seek profit, stabilize production and taking care of staff’s lives. The most important thing is that PHR will launch the emulation movement among staff, aiming to train and improve their skills for higher labor productivity...”.

Reported by K.Vinh-Translated by K.T