DKT VINA COMPANY LIMITED

DKT VINA COMPANY LIMITED: A Technologically-Driven Manufacturer with Impressive Profit Growth but Capitalization Gaps

DKT VINA COMPANY LIMITED (CÔNG TY TRÁCH NHIỆM HỮU HẠN DKT VINA), established on February 15, 2011, is a wholly foreign-invested enterprise located in Khai Quang Industrial Park, Khai Quang Ward, Vinh Yen City, Vinh Phuc Province. Registered under Business ID and Tax Code 2500427717, this one-member limited liability company is fully owned by DK TECH CO., LTD of South Korea.

The company specializes in the manufacturing of flexible printed circuit boards (FPCBs) and battery chargers for electric cars—sectors closely tied to global growth in electronics and EVs. This gives DKT VINA a strong strategic position in the evolving tech supply chain in Vietnam and Southeast Asia.

Financial Growth: Revenue Steady, Profit Soars

In 2023, DKT VINA reported USD 213.5 million in revenue, representing a 3.98% increase over 2022. While modest, this follows a stronger 15.76% revenue surge in 2022, suggesting the company is now stabilizing at a high production level after post-pandemic recovery.

What truly stands out is the 59.08% growth in net profit, which reached USD 9.02 million in 2023, after a 50.67% gain in 2022. This consistent profit acceleration over two years indicates strong cost management, operational scale, or rising demand for high-margin electronic components, likely linked to EV and consumer electronics sectors.

Capital Structure: Strong Earnings but Under-capitalized

While profit and asset growth are solid, DKT VINA’s charter capital stands at only USD 11.54 million, with just USD 7.72 million paid in. Given total assets of USD 111.38 million, the capital ratio appears thin. This raises questions about the sustainability of growth without heavier equity reinvestment.

Owner’s equity reached USD 64.58 million, up 6.4% YoY, driven by retained earnings rather than new capital contributions. It’s a positive sign of internal strength, but from a risk management viewpoint, the firm might be over-leveraged on retained earnings rather than diversified equity sources.

Liquidity and Risk Posture

The firm holds USD 26.44 million in working capital, a substantial liquidity buffer that reduces short-term financial stress. With 1,500 employees and active operations at Lot CN7, Khai Quang Industrial Park, DKT VINA appears to be well-staffed and production-ready.

Yet, a critical view of the asset trend shows that after nearly flat growth in 2021 and a decline in 2022, the 31.19% asset jump in 2023 might represent new investment or expansion—but this should be assessed for productivity and return, not just scale.

Management and Outlook

The company is led by General Director Mr. Kim Kuang Eg, with Ms. Nguyen Thi Kieu Lien serving as Chief Accountant. Given the South Korean ownership and technology focus, the management team likely benefits from global operational practices, but will also need to navigate regional supply chain volatility and pricing competition.

Conclusion

DKT VINA COMPANY LIMITED (CÔNG TY TNHH DKT VINA) is a profit-strong and liquidity-rich manufacturer with notable exposure to high-growth tech industries. While its earnings trajectory is impressive, the company should consider restructuring its capitalization to support long-term sustainability. Its thin paid-up capital relative to assets and ongoing high reliance on retained earnings could expose it to balance sheet fragility in the face of sector shocks. Therefore, while financial risks are currently mitigated by solid performance, close monitoring is recommended as the company scales further.