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Company Quarterly Earnings Update – PHR VN – Q4 2024
Summary of Q4/2024 results and outlook of Phuoc Hoa Rubber JSC (PHR VN)
- PHR operates in two main business segments: rubber plantation, which generates most of its revenue, and industrial park (IP) development, the primary earnings driver. The company develops IPs through three approaches: self-developing projects, cooperating with other developers to develop IP, and selling rubber land.
- In 2024, net profit declined 5% y/y to VND469 bn, mainly due to weaker earnings from the IP segment, while the rubber segment saw profit growth. IP development remained the largest contributor, accounting for 40.9% of net profit, followed by rubber sales (38.0%), interest income (18.9%), and other segments (2.1%). Earnings from the IP segment were primarily driven by projects developed in cooperation with other developers, including Nam Tan Uyen 2 Extension and VSIP III, while no income was recorded from rubber land sales, a key earnings driver in 2023. Meanwhile, the rubber segment experienced an improvement, supported by elevated global rubber prices and increased domestic production volumes, particularly during the peak harvest season.
- Looking ahead, the high occupancy rates of IPs in Binh Duong province (94%) and the Southern region (89%) highlight the urgent need for new projects to absorb rising FDI inflows. With its sizable rubber land bank in Binh Duong, PHR is well-positioned to capitalize on this demand, offering a cost-effective and efficient process for IP development. These factors are expected to further accelerate approvals for PHR’s upcoming IPs/ICs, as well as rubber land sale transactions.
- In 2025, net profit is projected to be primarily driven by the IP segment. Growth will be supported by accelerated leasing activities at Nam Tan Uyen 2 Extension and VSIP III, with a combined projected leasing area of 50 ha. Currently, Binh Duong has approximately 900 ha of remaining leasable area, with 580 ha from Nam Tan Uyen 2 Extension and VSIP III, serving as a key supportive factor for leasing demand. Meanwhile, other business segments are expected to remain at 2024’s levels.
- From 2026-2028, net profit is projected to be driven by rubber land sales and leasing activities from new projects. For Tan Lap 1, PHR is working with local authorities to finalize the 1/2000 master plan and secure investment approval from the Prime Minister, with leasing expected to commence in 2026. Additionally, PHR will sell 600ha to BCM for the development of Lai Hung IP and 400ha to BWE to develop Tan Long Waste Treatment Complex, with transactions expected to be completed in 2026 and 2027, respectively, further strengthening earnings grow.
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