BMP – A Bright Spot in Vietnam’s Plastics Industry

BMP – A Bright Spot in Vietnam’s Plastics Industry

Binh Minh Plastics Joint Stock Company (HOSE: BMP) is a leading player in Vietnam’s plastics manufacturing sector. With a strong financial position and market-leading product quality, the company is expected to maintain solid growth in the coming years.

Plastics Industry Maintains Growth Momentum

According to the Vietnam Plastics Association (VPA), the country’s plastics industry experienced rapid growth, with an annual rate of 16–18% during the 2010–2015 period—second only to telecommunications and textiles. Although growth has moderated in recent years, it remains relatively strong.

Plastic production reached 8.9 million tons in 2019, up 7.2% year-on-year. According to Business Monitor International (BMI), despite entering a slower growth phase, the industry is expected to maintain an average annual growth rate of 6.5% during 2019–2022.

BMI also forecasts that residential construction and water infrastructure development will grow by 6.7% and 7.3%, respectively, providing key growth drivers for the construction plastics segment—BMP’s core business area.

Source: General Statistics Office and Vietnam Plastics Association (VPA)

Benefiting from Trade Agreements and Lower Input Costs

Vietnam’s participation in multiple free trade agreements has strengthened its plastics industry, as these agreements involve key partners for both raw material imports and export markets.

Notably, the EU–Vietnam Free Trade Agreement (EVFTA) is expected to expand export opportunities and support industry growth.

In addition, the plastics sector has benefited from declining oil prices. Since early March 2020, West Texas Intermediate (WTI) crude oil prices have remained below $40 per barrel, contributing to lower resin prices and reduced input costs.

Stable Business Performance

BMP’s revenue recorded steady growth from 2014 to 2019. However, net profit showed a slight decline in recent years. In 2019, revenue increased by 10.64% to VND 4,337 billion, while net profit edged down by 1.15% year-on-year.

Despite global economic uncertainties, BMP delivered relatively strong performance. In Q1 2020, sales volume rose by 10.1% compared to the same period last year. Revenue and net profit reached VND 1,020 billion and VND 102 billion, respectively—up 9.56% and 12.09%.

Source: VietstockFinance

Stock Valuation

As a market leader, BMP is benchmarked against regional and global peers (excluding NTP) with similar or larger scale, primarily across Asia, including China, Japan, and India.

Source: VietstockFinance, Investing và TradingView

Using a combination of valuation methods—P/E, P/B, and Dividend Discount Model (DDM)—with equal weighting, the fair value of BMP shares is estimated at VND 66,975.

Investors may consider accumulating the stock for long-term investment if the price falls below VND 46,900, representing a discount of approximately 30% to its fair value.

Corporate Analysis Department, Vietstock Consulting Division

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