VNT, Short is Good, Long is Great

VNT is one of the stock that gives comfort when invests in and no need to worry about fundamental factors. Undeniably, Vinythai Public Company Limited (VNT)’s share is currently on the range and it is also the share that could be played for both speculation and long-term investment. Even if the speculation is narrow range, it definitely can guarantee the mitigable risk.

VNT is the producer and distributor of PVC and Caustic Soda. VNT produces and distributes products to manufacturers who reprocess PVC into finished products in the plastic industry. It could be easily called “Intermediate Petrochemical Industry”

The interesting point of VNT is stability and growth. Let’s start from stability which VNT can be called “The Company With No Debt”.  As the result of the financial statement in the past 4 years, VNT’s debt has decreased, while the asset value shows a great increase. To be more specific, in 2015, the total asset of VNT was THB 18,047 million and the total debt was THB 3,552 million. In 2016, the total asset showed THB 18,579 million and the total debt was THB 2,010 million. And in 2018, the total asset was THB 21,596 million and the total debt was THB 1,827 million.

VNT is more interesting in the term of growth which the number of profit is clearly greater than revenue. To beginning with the year of 2015, the revenue was THB 16,654 million, the net profit was THB 566 million and the net profit margin was 3.40%. In 2016, THB 15,887 million was the revenue of this year, the net profit was THB 1,123 million and 7.07% presents the net profit margin. Continuously, in 2017, the revenue was THB 19,403 million, the profit was THB 2,248 million and the net profit margin was 11.59%. And the latest year in 2018, the revenue was THB 20,171 million, the net profit was THB 3,059 million and the net profit margin was 15.17%.

The stability and direction of growth could help to limit risks, however, VNT is the stock that many people have overlooked. Due to the fact that VNT has less liquidity and normally most investors focus on the popular stock, such as PTT Global Chemical Public Company Limited (PTTGC) which is a big brother of this sector. For this reason, it makes VNT becomes only a “Rest Spot,” but in fact, both have great outlook on their financial statement.

Well, even if VNT is only the “Rest Spot” of investors, but it could guarantees that short is good, long is great, and it will definitely be harmless.