02 October 2018
Everpia will not be hurried on the match of winning the advantage of China-America trade war
According to Mr. Cho, lots of companies have hurriedly expanded their production sites to take the wave of TPP, but the market size has not increased accordingly. Everpia will not be hurried to invest further factory until a better visible opportunity.
On the Analyst Meeting of 3rd quarter 2018 in the morning of 27th Sep, Everpia JSC (stock code: EVE) announced that, during the first 08 months of 2018, the Company achieved total sales of 717 billion, rising 31% over the same period in 2017. Revenue increased sharply while the cost was well-controlled, thereby the net profit after tax reached 55.2 billion, up 26% over the same period.
The two key traditional businesses of Everpia have all achieved the expected growth rate, in which the Bedding attained 393 billion of sales, increasing by 20% over last period. Padding sales reached 263 billion, rising 21%. Cleaner business contributed 60 billion of sales during the first 08 months.
Although the growth rate is quite high compared to the same period in 2017, but in comparison with the business plan of whole year 2018, the Company is still quite far behind the target with the completion rate of 62% and 48% respectively for sales and profit.
Answering the questions of reporters & analysts regarding the fact that the business results are still far away from the yearly target, whether the Company can successfully conquer this year’s challenge, Everpia’s leader said: the weather is turning cold and this time begins the peak season of the Company’s business. Everpia expects to meet the annual plan assigned by the shareholders.
CafeF raised a question: "Recently, everyone has talked about the US-China trade war and supposed that Vietnam textile and garment industry would be benefited. The trade war had actually happened and caused a severe impact to global trade. For many businesses, this war can bring opportunities to boost sales for many times compared to current capacity. Hence, could you please share specific figures as the result of this war to your company? How does the current production capacity adapt if the orders come in bulk, and is there any plan of expansion to meet the increasing demand?" Mr. Cho Yong Hwan – Vice President in charge of business division, revealed Everpia would not be hurried in the match to win the advantage from the US-China trade war.
In explanation, Mr. Cho said that although Everpia itself has been receiving more orders since the US-China trade war, but it doesn’t mean that we will expand production site immediately to take this opportunity. According to Mr. Cho, the bitter lesson of many Vietnamese companies who had rushed to pour investment on factory expansion to meet the TPP’s chance is still there. The opportunity from the view of analysis could be very good, but the global game is a big game, in which many factors are out of our control. The benefits are undeniable, but how much it is will depend on how the global capital flows, economic protection policies of participants, the list of goods entitled to tax incentives…
Mr. Cho added that Everpia's decision of not expanding does not mean that the Company is standing out of this opportunity. During the recent factory restructuring, the Company has increased its production capacity by 30% without new construction. This improvement plus the modernization of the production lines could enhance the Company’s capacity by 60% in response to the increased demand.
Source: http://cafef.vn/everpia-se-khong-voi-va-trong-cuoc-chien-danh-loi-the-tu-chien-tranh-thuong-mai-my-trung-20180928082815653.chn
On the Analyst Meeting of 3rd quarter 2018 in the morning of 27th Sep, Everpia JSC (stock code: EVE) announced that, during the first 08 months of 2018, the Company achieved total sales of 717 billion, rising 31% over the same period in 2017. Revenue increased sharply while the cost was well-controlled, thereby the net profit after tax reached 55.2 billion, up 26% over the same period.
The two key traditional businesses of Everpia have all achieved the expected growth rate, in which the Bedding attained 393 billion of sales, increasing by 20% over last period. Padding sales reached 263 billion, rising 21%. Cleaner business contributed 60 billion of sales during the first 08 months.
Although the growth rate is quite high compared to the same period in 2017, but in comparison with the business plan of whole year 2018, the Company is still quite far behind the target with the completion rate of 62% and 48% respectively for sales and profit.
Answering the questions of reporters & analysts regarding the fact that the business results are still far away from the yearly target, whether the Company can successfully conquer this year’s challenge, Everpia’s leader said: the weather is turning cold and this time begins the peak season of the Company’s business. Everpia expects to meet the annual plan assigned by the shareholders.
CafeF raised a question: "Recently, everyone has talked about the US-China trade war and supposed that Vietnam textile and garment industry would be benefited. The trade war had actually happened and caused a severe impact to global trade. For many businesses, this war can bring opportunities to boost sales for many times compared to current capacity. Hence, could you please share specific figures as the result of this war to your company? How does the current production capacity adapt if the orders come in bulk, and is there any plan of expansion to meet the increasing demand?" Mr. Cho Yong Hwan – Vice President in charge of business division, revealed Everpia would not be hurried in the match to win the advantage from the US-China trade war.
In explanation, Mr. Cho said that although Everpia itself has been receiving more orders since the US-China trade war, but it doesn’t mean that we will expand production site immediately to take this opportunity. According to Mr. Cho, the bitter lesson of many Vietnamese companies who had rushed to pour investment on factory expansion to meet the TPP’s chance is still there. The opportunity from the view of analysis could be very good, but the global game is a big game, in which many factors are out of our control. The benefits are undeniable, but how much it is will depend on how the global capital flows, economic protection policies of participants, the list of goods entitled to tax incentives…
Mr. Cho added that Everpia's decision of not expanding does not mean that the Company is standing out of this opportunity. During the recent factory restructuring, the Company has increased its production capacity by 30% without new construction. This improvement plus the modernization of the production lines could enhance the Company’s capacity by 60% in response to the increased demand.
Source: http://cafef.vn/everpia-se-khong-voi-va-trong-cuoc-chien-danh-loi-the-tu-chien-tranh-thuong-mai-my-trung-20180928082815653.chn