Wood processor's shares jump 20 pct on debut

Shares in Vietnam's Thuan An Wood Processing Company (GTA) jumped 20 percent on their Monday debut on the Ho Chi Minh Stock Exchange, while the market eased slightly.

Shares in the rubber wood processor closed at 66,000 dong ($4.08) each, above the starting price of 55,000 dong the company set for the first trading day.

Thuan An, now the 108th listed firm on Vietnam's exchange, was valued at $34.3 million. Other wood industry-related listed companies include furniture exporter Savimex (SAV) and two paper manufacturers Hapaco (HAP) and Vien Dong Paper (VID).

The VN Index edged 0.21 percent down to close at 979.23 points, a 30 percent rise from the end of 2006.

The market capitalisation stood at $12.7 billion.

Thuan An, based in the southern province of Binh Duong, is a subsidiary of Vietnam Rubber Group. It gets 51 percent of its export revenues from the United States, Europe and several Asian countries.

Wooden products are Vietnam's fifth-largest foreign exchange earner after crude oil, textiles, footwear and seafood.

Thuan An's net profit last year jumped 29.9 percent from 2005 to 13.85 billion dong ($858,200) as revenues grew 6.8 percent to 182 billion dong ($11.3 million), the company said in its prospectus.

It has forecast this year's revenues to rise 13 percent from 2006 to 206 billion dong while the net profit would jump 32.5 percent to 18.35 billion dong, thanks to expanded production capacity with a new plant operational in 2006.

Another rubber firm, Tay Ninh Rubber Company which is valued at $240 million on the unofficial markets, is scheduled to debut on the exchange on Tuesday with all its 30 million shares.

Source: Reuters

Savimex seeks to nail growing exports to US, EU

The Ho Chi Minh City-based joint stock Savimex Corp opened a plank, or plywood, factory in Thu Duc District on July 17 to supply new products to the US and EU markets.

Savimex general director, Le Minh Trang, said the company had won a contract to supply at least 10 containers of plank products per month to New Jersey-based Acorn USA Holdings Llc in 2007.

Savimex’s total export of plank products to American and EU markets amounts to 100 containers per month.

Trang said Savimex expected export turnover of at least 3 million USD per year for the new products.

In addition, the company will also supply these products to local customers who buy plywood for new serviced apartments under construction in cities across the country.

”Modernising the company’s production lines and management and equipping them with advanced technologies are our priorities,” said Trang.

She added Savimex targeted annual export turnover of 40 million USD by 2010.

Source: VEN