(DTCK) In the context of more uncertainties and difficulties in fertilizer marketthan the previous years, PetroVietnam Fertilizer and Chemicals Corporation (DPM) is expected to outperform its 2016 business targets.

With continuous success in surpassing whole year target despite a lot of hardships and challenges, DPM stock is  always highly appreciated by investors  as of the most favorable value stocks.

Continuous growth

According to DPM’s 2015 Annual report, the year 2015 brought about a lot of changes such as falling oil price, amendment of VAT regulations, climate changes influencing globaland domestic agriculture industry leading tolower demand and decreasein  fertilizer price… In such a situation where difficulties outnumbered advantages, PVFCCo  has implemented timely solutions to fulfil year’s targets and remain shareholders and investors’ trust in the value of DPM stock.

Specifically, 2015 revenue posted VND10,047 billion, exceeding year plan by 9%; profit after tax reached VND1,488 billion, increasing  36% yoy and outperforming target by 42%. Therefore, dividend rate for the year 2015 was raised to 40% from 25% on par value as previously approved by the AGM. In 2016, the Board of Management committed the dividend rate of 30% of par value.

2015’s success paved the way for DPM to fulfil its targets in 2016 as promised to the AGM and to maintain the leading position in fertilizer and chemicals industry. At the beginning of this year,the facts that dropping oil price, severe cold weather in the North, drought and heavy salinization in the Middle – Central Highlands and in the South badly affected fertilizer demand, especially urea, hence causing constant fall inurea prices

However, with the flexibility in production & business management and competitive advantages in the market, DPM has made the most of opportunities to fulfil and outperform year targets.

Mr Le Cu Tan, Chairman of DPM stated that “In corporate management, BOM has kept focused on controlling and cutting the expenses reasonably, improving sales policy and selling price. In the first half of 2016, DPM has fully met its main business targets”.

Regarding production of Phu My urea, the output in the first 9 months of this year was 635,558 tons, up by 6% compared to same period of 2015. Besides, selling volume remains positive with the sales of Phu My urea of 644,362 tons, accounting for 103% of the first 9 months’ plan. Sales of other fertilizers in the first 9 months of 2016 was 274,866 tons, corresponding to 125% of 9 months’ target.

In addition, the chemical section also witnessed remarkable growth. Especially, sales of NH3 reached 26,448 tons, accounting for 181% of 9 months’ target and increasing by 33% compared to same period of 2015 as DPM focused on development of this product.

These encouraging outcomes resulted in cumulative profit before tax of the first 9 months of VND1,232 billion, fulfilling 84% year target. Regarding the outlook for coming time, Mr Le Cu Tan commented that “In the future development plan, we commit to optimize production efficiency to outperform the business targets; in the meantime focusing our resources to accelerate  investment projects”.

Direction for middle and long term sustainable development

With the aim towards sustainable development, 2016 Annual General Meeting of Shareholders has approved the Corporation’s strategic plan for middle and long term development to 2025 and visionto 2035. Accordingly, DPM plans in 2021 – 2025 period to maintain its position as No. 1 fertilizer enterprise nationwide; to develop the chemical section with targeted revenue contribution ratio of 50% in 2020 and 70% in 2025; NPK factory to operate atfull capacity (250,000 tons/year) from 2018 and in 2021 – 2025 period to upgrade capacity to 500,000 tons/year.

Following such development, DPM identifies chemical section as the main driver for growth in 2025 – 2035 period, which is expected to contribute 70% to total profit. In this period, DPM also plans to raise capacity of NPK factory to 750,000 tons/year and strive to become one of the Top 10 largest fertilizer and chemical companies in Asia in terms of scale.

Considered one of the most outstanding companies in the stock market, in 2016, DPM continues to be the only fertilizer and chemical company to receive the prize of the best listed company in agriculture and supporting industries. This year also marks the fourth continuous year that DPM was selected in the list of Forbes. DPM was also voted by Vietnam Financial Management Association and Vietstock to be in Top 5 listed companies with best IR activities.

In addition, the prize “Enterprise for the employees” and Prime Minister’s Merit Certificate for achievements in employee support activities granted to DPM recently are vivid examples of the Corporation’s full development.