03.11.2020, 10:08

[Outstanding stocks of the week] Not just Textile stocks, GIL “jumped” faster than TCM, TNG, MSH

Last week, GIL shares of Binh Thanh Production, Trading and Import-Export JSC went against the VN-Index (-3.72%) to increase 11.21% to 30,750 VND / share. This is completely opposite of GIL and outperformed the majority of stocks on the floor.

At the same time, compared to textile stocks, GIL is really the most impressive face when in general, stocks such as TNG, MSH are still struggling to return to the price level before the COVID-19 outbreak in March. Even the leading stock in the textile industry, TCM, increased by 123.5% – a very good recovery compared to the closing price on March 31, but also lost to GIL.

[Outstanding stocks of the week] Not just Textile stocks, GIL “jumped” faster than TCM, TNG, MSH

After Friday session, GIL has increased by 126.77% and is trading at the highest price range in the past 2 years. Currently, GIL is not just a textile stock but is also expanding into Industrial Park segment. These factors will lead to GIL valuations which have a blend of a Textile and Industrial Park stock.

However, with the transaction at the peak, investors will need to be especially cautious in disbursing. GIL can still break its historic peak of 35,000 dong / share. In case of overwhelming adjustment, investors should also pay attention to the support level of 28,500 VND / share.

Ambition to encroach on the industrial zone

Gilimex produces a wide range of textile and garment products: household products, bags, backpacks, outdoor furniture, and clothing. GIL currently has 36 sewing lines in two factories in Binh Thanh & Thanh My. In addition, GIL has another 36-line processing system. GIL’s goal is to develop an internal sewing line system to 37 by 2020 and increase the number of external processing lines to 58.

Mirae Asset Securities Company (MAS) said that the two biggest partners of GIL are Amazon and IKEA. These are strong financial enterprises, still doing stable business with the main direction of online business recently. This helps GIL avoid pressure in 2020, different from textile enterprises in the industry.

9 months’ revenue and net profit reached 2,545 billion and 190 billion, up 45% and 110% respectively over the same period. Specifically, the profit margin increased sharply to 16.7% compared to 14.5% in the same period while financial revenue reached 44 billion VND, up 55% while interest expenses decreased by 25%, stopping at 11 billions dong.

In 2021, GIL expects to continue the growth rate of export of traditional textile products thanks to growth from online segment.

Notably, GIL plans to deploy the Phu Bai 4 Industrial Park project according to Singapore standards with the capital contribution of VND 255 billion, equivalent to 51% of the charter capital. The scale of the project is 420 hectares in phase 1, and an additional 87 hectares in phase 2. Total project investment is expected at 3,000 billion VND.

MAS believes that revenue and net profit in 2020 may reach 3,425 billion and 253 billion, respectively, up 34.9% and 57.5% over the same period.

Revenue and net profit in 2021 is estimated at 3,840 billion and 297 billion, respectively, up 12.1% and 17.5% over the same period. The industrial zone segment is expected to record new revenue of VND 244 billion, equivalent to 30 hectares for lease with an assumed rental price of $ 35 / m2. The general garment and textile segment expects revenue to increase 5% and gross profit margin to increase to 17.9%, mainly contributed by the industrial zone segment.

Source: bizlive.vn – Translated by fintel.vn