PHUC SINH CORPORATION

PHUC SINH CORPORATION (CÔNG TY CỔ PHẦN PHÚC SINH) is a privately held joint stock company, registered under Business ID and Tax Code 0302401061, with its head office located at No. 238 - 240 Vo Van Kiet Street, Cau Ong Lanh Ward, District 1, Ho Chi Minh City, Vietnam. The company has been active since its incorporation on May 31, 2010, and operates in the manufacturing and trading of food products, especially spices and agricultural exports such as pepper, coffee, tea, and cashew nuts.

Led by Chairman cum General Director Phan M. T., who controls 83.45% of the company, with Ms. Pham T. T. Nhungholding the remaining 16.55%, PHUC SINH CORPORATION appears to be a family-controlled business with centralized leadership. This ownership structure ensures strategic consistency but also raises concerns about concentration risk and governance transparency for large-scale credit assessments.

Financial Assessment and Risk View

From a credit risk management standpoint, PHUC SINH CORPORATION presents a mixed risk profile:

• Total sales in 2022 surged to USD 211.44 million, up 32.97% year-over-year, showing strong top-line momentum.

• Profit after tax rose significantly to USD 1.71 million, a 165.3% increase YoY, though the absolute figure remains modest for a company of this scale.

• Working capital, while showing growth (+186.52% YoY), still stands at only USD 1.61 million, which may indicate tight liquidity.

• Owner's equity increased to USD 18.48 million, reflecting retained earnings growth and improved capitalization.

• Total assets rose by 12.37% to USD 81.68 million, but still signal a capital-intensive operation with possible reliance on debt or vendor credit.

While the growth in revenue and profit is a positive signal, the thin profit margin (~0.8%) and low working capital buffer suggest moderate to high financial risk under stress scenarios, such as commodity price volatility, delayed payments from large buyers, or unexpected operational disruptions.

Business Scope and Complexity

PHUC SINH operates across a wide array of registered business sectors, from agricultural product manufacturing and trading to transport, warehousing, electronics, packaging, and leasing services. While this diversity may offer strategic flexibility, it also dilutes focus and introduces operational complexity, especially if resource allocation is not disciplined.

The company's factory in Binh Duong supports its production capabilities, though production efficiency and capacity utilization are not disclosed in the report.

Final Remarks for Credit Risk Managers

PHUC SINH CORPORATION has shown encouraging financial performance, especially in revenue and profit growth. However, as a credit manager, one must critically assess the tight liquidity, modest net income, limited equity buffer, and ownership concentration risks. The firm is recommended for moderate credit exposure with ongoing monitoring, especially in terms of cash flow, trade receivables, and seasonal inventory levels.

For more robust verification, legal standing checks, and risk mitigation, it is advisable to obtain a comprehensive credit report from Vanguard Business Information (VNBIS). VNBIS offers reliable insights into Vietnamese companies’ financial health, operational history, and legal status—crucial for safe business transactions and strategic lending decisions.

🔍 Learn more or request the full report at: https://www.vnbis.com.