According to SHS Securities, Binh Minh Plastic Joint Stock Company (BMP) closed 2025 with record results. Net revenue reached VND 5.51 billion (up 19.4%), and net profit after tax reached VND 1.229 billion (up 24% year-on-year). Gross profit margin hit a record 46.1%, supported by PVC resin prices staying at a ten-year low, lifting return on equity to 42.7%—nearly double that of its direct competitor, Tien Phong Plastic. SHS views 2026 as a transitional year for margins. Net profit after tax is expected to reach VND 1.2 trillion (down 2.3%). Revenue growth continues at 12.2%, driven by a recovery in the construction sector and BMP's proactive price adjustments. However, gross profit margin is expected to decline from its peak of 46.1% to 40.4%, due to an 18% rise in PVC resin prices following the Middle East oil price crisis. From 2027 onward, net profit after tax is expected to recover strongly, growing at an average rate of about 13% per year. SHS notes that BMP has advantages in raw material supply and a solid financial structure. BMP has an internal supply channel for PVC resin from TPC Vina and SCG Group, a significant buffer given the industry's reliance on imports for about 70% of raw materials. The company is nearly debt-free, with equity accounting for 85% of total assets, and 25-30% of its production capacity remains unused, supporting abundant free cash flow and sustainable cash dividends. However, SHS advises investors to continue monitoring external risk factors that could pressure margins, such as Middle East oil shocks, PVC resin price volatility, VND/USD exchange rate pressure, and the actual recovery rate of the residential real estate market. SHS recommends increasing the weight of BMP shares.
SHS Securities recommends overweighting BMP shares based on positive factors in the company's business operations. According to SHS's assessment, BMP directly benefits from the recovery cycle in the construction and public investment sectors. Since about 90% of its revenue comes from civil construction, BMP is among the first to benefit from the recovery cycle of the residential real estate market. Industry-wide plastic pipe output rose by about 24% in the first nine months of 2025, while the planned public investment of USD 320 billion for 2026-2030 opens broader prospects for the HDPE infrastructure pipe segment. SHS uses a combination of discounted free cash flow (FCFF) and price-to-earnings ratio comparison to determine the fair value of BMP shares at VND 175,000 per share, representing a 25.1% upside from the current price, plus an expected dividend yield of about 8.9%. Based on this attractive expected return (total return of about 35.8% over the next 12 months), SHS recommends overweighting BMP shares.
Source: Read the original report | Published: May 27, 2026