After more than 35 years of construction and development, eight years operating as a joint stock company and six years as a public company (ticker symbol: PAC) on the Hochiminh Stock Exchange (HOSE), Dry Cell and Storage Battery Joint Stock Company (PINACO) has made remarkable achievements in production, trade and investment. As of December 31, 2011, the company’s total assets valued VND1,187 billion, representing an increase of 84 percent from the previous fiscal year; its registered capital was VND269.88 billion; fixed tangible assets were worth VND201.13 billion, up 68.65 percent year on year.
Looking back on its five-year period (2007 - 2011), Pinaco was always the top producer of batteries and cells in Vietnam, with 55 percent of dry cell market share and 50 percent of battery market share. Not only serving personal customers, the company’s batteries are also supplied for most automobile manufacturers in the country, including Ford, Hyundai, Suzuki, Mercedes-Benz and Truong Hai Auto. Dry cells branded Con O (Eagle) are widely used by electronics companies like Belco, Daewoo-Hanel, VTB, Tien Dat and Maseco. During this period, its total sales reached VND7,180 billion, accumulative profit before tax was VND580 billion, and dividend payout ratio was 124 percent, up 213 percent, 411 percent and 165 percent over 2006, respectively. Apart from the domestic market, Pinaco has continuously expanded in overseas markets like Southeast Asia, Africa, Oceania and South America. The company is now focusing on tapping its resources and facilities to scale up production capacity of the Saigon and Dong Nai 1 battery factories, and has invested VND256 billion in a new modern factory equipped with European technologies in Nhon Trach Industrial Park, Dong Nai province. Put into operation in April 2011, Dong Nai 2 battery factory is currently operating at 60 percent of designed capacity of 600,000 kWh a year. The output will gradually increase in the coming years to raise the aggregate output to 1.8 million kWh a year.
Currently, the company has 50 types of dry cells and batteries in different shapes and sizes under the brand names of Con O, Dong Nai, JP and Pinaco. Its products are used for civil purposes, cars, ships, electric bikes, uninterruptible power supply (UPS) and other devices. It also has a complete sealed maintenance free (CMF) battery. Explaining the remarkable results of Pinaco in the context of economic slowdown, featured by domestic sales rising 16.24 percent and exports climbing 32.24 percent, Mr Tran Thanh Van, General Director, said: These results came from flexible and timely management policies. Specifically, the company actively reinforced and developed a nationwide distribution system powered by local agents and distributors. The company performed R&D to produce better products for the market while improving the ISO 9001: 2008 quality management system and applying ISO/TS 16949: 2009 quality management system.
As batteries require a lot of substances that may harm the environment, Pinaco responsibly complies with all policies and regulations on environmental protection, installs modern waste treatment systems, and deploys the ISO 14001: 2004 environmental management system to maintain a clean and green environment and protect the health of workers and communities.
Remarking on the development plans in the next phase, General Director Van said the company will continue focusing on developing three aspects, namely product, market and investment. Regarding its products, Pinaco will conduct research and development on new consumer-oriented products while improving current arrays of products. With respect to markets, it will expand both domestic and export markets with better service and surveying new markets like India, South Asia and the Middle East. With regard to investment, Pinaco will continue developing the capacity of new equipment to enhance productivity and quality. Pinaco estimates revenues will VND2,050 billion, operating profit of VND115 billion, and dividend payout of over 15 percent in 2012.
My Ngoc
Vietnamese
