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VICOSTONE JOINT STOCK COMPANY

VICOSTONE JOINT STOCK COMPANY


Project Description

OVERVIEW

Vinaconex Advanced Compound Stone Joint Stock Company (VCS), was established in 2002, has precursor was Vinaconex Advanced Compound Stone Factory. The company has been equitized since 2005. After changing name for many times, company’s recent name is “VICOSTONE joint stock company”. VCS’s main bussinesses are producing and trading artificial ashlar paving stone made from quartz. In addition, the company is also manufacturing and trading construction materials; mining and processing minerals and providing transportation services etc. VICOSTONE currently owns 2 Breton production lines, which are the export agency for Phuong Hoang Xanh A&A Joint Stock Company (which consists of 5 prodcution lines with total capacity of 2.5 million m2 / year). VICOSTONE’s quartz products have been exported to 40 countries in 5 continents. Vicostone is highly competitive in terms of quantity and uniqueness of design models compared to other major artificial stone brands. Vicostone has facilities in the United States and Canada with direct distribution systems throughout the states. VCS has been traded on Hanoi Stock Exchange (HNX) since December 17, 2007.

MAIN BUSINESS

  • Recent company’s main bussiness are producing and trading artificial ashlar paving stone made from quartz.
  • Manufacturing and trading construction materials;
  • Mining and processing minerals;
  • Providing transportation services;
  • Constructing and installing civil and industrial works and decorating interior and exterior;
  • Exporting and importing construction materials, equipments, machines, manufacturing and commercial materials;
  • Others under business license.

MARKET POSITION

  • VICOSTONE currently owns 2 Breton production lines, which are the export agency for Phuong Hoang Xanh A&A Joint Stock Company (which consists of 5 prodcution lines with total capacity of 2.5 million m2 / year).
  • VICOSTONE’s quartz products have been exported to 40 countries on 5 continents. The company also built a direct distribution system with 6 distribution centers in North America.
  • VICOSTONE is the focal selling point of PHENIKAA Group in Vietnam as well as woldwide.
  • The VSC accounted for 11% and 3.5% of the quartz market in the United States and Canada respectively. Becomes one of the four largest artificial stone production companies in the world in terms of production capacity.
  • VICOSTONE has been registered for copyright in 32 countries and territories including main markets such as: the United States, Canada, Australia, New Zealand, EU and Argentina.

GROWTH STRATEGY

  • Taking industrial production as core business, ecological materials and high-tech products are spearheading, increasing the proportion of supply chain participation for high-tech products.
  • Sustainable and efficiency development, using efficient and always updated the latest technology, improved continuously in both production and business management.
  • Speeding brand development up, scientific research, develop new products with unique technological. Pioneering on new technologies, new materials and leading the new market trend, developing sustainably.

PROSPECTIVE

  • According to The Freedonia Group, Inc’s research (2017), global market demand for countertop materials  is forecasted to grow at an average annual rate of 2.3% to reach 498 million square meters by 2021.
  • Compared to the traditional materials, quartz stone material is still considered the new material, the total demand for quartz surfaces worldwide in 2017 reached about 50 million m2 and is forecasted to increase an average of 5.5% per year in the period 2016-2021. This is also the fastest growing material compared to other materials.
  • Currently, Vicostone’s products are available in more than 40 countries and territories around the world. However, nearly 99% of revenue is concentrated mainly in key markets such as North America, Australia and Europe

RISK

  • VCS’s hidden risks are: fluctuation of exchange rates and taxes, hard requires of VCS’s main export markets such as products’ quality, origin are also impact significantly on company.
  • Because of the company has not own its own supply chain, so it faces some riskes such as: fluctuation of materials cost (especially quartz, cristobalite and polyester resin glue); risks from delivery time of imported materials can be months. Might be extorted by quartz suppliers because competitors pay higher price.
  • Besides, a new challenge comes from the appearance of a number of quartz-based artificial stone manufacturing units, with technology lines imported from China with very low investment costs, at risk of “dilution” by low-end product lines, low prices and increased price competition.