SOUTH-EAST PETROVIETNAM FERTILIZER AND CHEMICALS JOINT STOCK COMPANY

SOUTH-EAST PETROVIETNAM FERTILIZER AND CHEMICALS JOINT STOCK COMPANY, known by its stock symbol PSE on the HNX, has been active since its establishment in August 2008 and operates as a publicly held joint stock company under the PetroVietnam Fertilizer and Chemicals Corporation umbrella. Registered with the Tax Identification Number 0305918852, its head office is situated at No. 27, Dinh Bo Linh Street, Ward 24, Binh Thanh District, Ho Chi Minh City, Vietnam. Despite over 16 years of operations and the backing of a dominant shareholder holding 75% of its equity, the company’s recent financial trajectory reflects both structural strengths and operational vulnerabilities.

As of the end of 2023, the company reported total assets of USD 11.55 million, down from USD 12.91 million in 2022, continuing a downward trend that persisted into 2024. Equity stood at USD 6.83 million, representing a 5.19% decline from the prior year, while sales revenue fell sharply by 16.33% to USD 128.88 million. Net profit dropped by 43.36% to just under half a million dollars, which should be a point of concern for credit risk assessment. Such contractions in revenue and profitability, paired with asset erosion, suggest pressures either from market competition, pricing challenges, or operational inefficiencies.

The company’s core business revolves around trading fertilizers and chemicals, yet its registered activities span a broad spectrum — from inland freight water transport and road freight to retail, agricultural raw materials trading, real estate, and even market research. While diversification can be an asset, it can also dilute focus, especially in a market where specialization and efficiency are critical for sustaining margins. This breadth of activity warrants scrutiny regarding management’s ability to maintain control, quality, and profitability across such diverse segments.

Leadership is headed by Chairman Pham Hung, with operational oversight by Director Le D. T. and Deputy Director Nguyen T. S. While the leadership team has industry experience, the financial results of 2023 raise questions about strategic direction, cost control, and market positioning. In particular, the combination of declining assets and sales with shrinking profits points to potential liquidity and competitiveness concerns if not addressed decisively.

From a credit manager’s perspective, the company’s strong backing by PetroVietnam offers some comfort in terms of capital support and market presence, but it should not overshadow the operational realities. The 2023 figures indicate a need for sharper execution, targeted market strategies, and tighter working capital management to reverse negative trends. Without these corrective measures, PSE risks further margin compression and reduced creditworthiness, especially in a volatile commodity market where both input costs and selling prices are subject to sharp fluctuations.

In sum, SOUTH-EAST PETROVIETNAM FERTILIZER AND CHEMICALS JSC remains a significant player in Vietnam’s fertilizer and chemical distribution sector, but its recent financial performance signals an inflection point. Stakeholders from suppliers to financiers, should closely monitor how the company navigates the balance between diversification and core competency focus in the coming periods.