BMP Initiation – BUY

BMP is a leading enterprise in the construction plastic industry in Vietnam. BMP currently holds a 27% market share nationwide and 50% market share in the South. The company has recorded stable business results in recent years, mainly due to a significant decrease in raw material costs (mainly PVC resin). With the prospect of PVC prices remaining low in 2026, we forecast that BMP will maintain revenue and profit growth of 4% and 8.3%, respectively, in 2026. The target price for the stock by the end of 2026 is VND181,600/share. Rating BUY.

BMP’s output products include three main types of plastic pipes: uPVC, HDPE, and PP-R. As a subsidiary of The Nawaplastic Industries, BMP enjoys input advantages over other companies, with most of its raw materials (PVC resin) sourced domestically. As a result, BMP consistently achieves higher profit margins compared to other companies in the industry.
The continuous decrease in PVC resin prices since 2022 has positively supported BMP’s profit margin. For Q3/2025, BMP recorded revenue of VND1,554 billion (+9.3% YoY) and NPAT of VND351 billion (+21% YoY and +6% compared to the previous quarter). Gross profit margin improved from 42.6% in the same period last year to 47.2%, thanks to the continued decline in PVC resin prices (-12.8% YoY). Additionally, sales volume increased due to higher discount and the recovery in domestic demand, while the selling price of plastic pipes was estimated to remain stable YoY. Cumulative revenue for 9M2025 reached VND4,295 billion (+19% YoY) with NPAT of VND967 billion (+27.3% YoY). Increased sales volume and a 15.5% YoY decrease in PVC resin costs were the main drivers behind this performance.
BMP’s financial structure is healthy, with the lowest debt ratio compared to other companies in the industry. With a high proportion of cash and short-term deposits, BMP’s financial risk is low.
Outlook
PVC resin prices are expected to remain low due to the sluggish economic outlook in China, particularly in the real estate sector. Additionally, the average Brent crude oil price for 2026 is projected to decrease to USD58 per barrel according to the EIA and USD56 per barrel according to Goldman Sachs, which will also help maintain low PVC prices.
We forecast BMP’s full-year results for 2025 to be revenue of VND5,515 billion (+19.5% YoY) and NPAT of VND1,315 billion (+32.8% YoY). For 2026, we expect revenue to reach VND5,710 billion (+4% YoY) and NPAT to reach VND1,425 billion (+8.3% YoY) due to sustained low PVC resin prices and increased demand for plastic pipe products. Using a discounted cash flow method, we value BMP at 181,600 VND/share by the end of 2026.