SOUTH WEST PETROVIETNAM FERTILIZER AND CHEMICALS JOINT STOCK COMPANY

SOUTH WEST PETROVIETNAM FERTILIZER AND CHEMICALS JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN PHÂN BÓN VÀ HÓA CHẤT DẦU KHÍ TÂY NAM BỘ), known by its stock symbol PSW on the HNX exchange, is a publicly held joint stock company established on 15 August 2008. With over 16 years of operations, the company is headquartered at No. 151/18 Tran Hoang Na Street, Hung Loi Ward, Ninh Kieu District, Can Tho City, Vietnam, and serves as a distributor of Phu My fertilizer and various imported fertilizers across Vietnam's agricultural hubs.

The company is led by Pham Q. H. as Chairman, supported by Trinh V. K., the Director, and Le T. T., Deputy Director. With a workforce of just 64 employees, PSW’s operations are relatively lean, focusing on wholesale distribution, agricultural raw materials, warehousing, and logistics services that complement its core fertilizer business.

Financially, PSW is in a transitional phase, facing both opportunities and critical challenges. As of 2024, total assets declined to USD 10.32 million, marking an 11.79% drop from the previous year. Sales fell significantly by 16.85% to USD 111.27 million, reflecting weaker market demand or competitive pressures. However, the company’s profit rebounded sharply to USD 388,405, an impressive 358.57% increase compared to 2023, suggesting improved cost control or operational efficiencies. Despite this profit growth, its overall equity slightly decreased by 0.46% to USD 8.26 million, indicating a slow erosion of capital over recent years. The working capital of USD 7.53 million provides some operational flexibility, but declining asset levels raise concerns about the company’s ability to maintain its scale and competitiveness in the long term.

The company’s majority shareholder, Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo), holds a 75% stake, which brings the advantage of being part of a state-backed enterprise with established market networks. However, the fertilizer industry is known for its exposure to global commodity price fluctuations, currency risks, and seasonal agricultural demand, which could affect PSW’s future performance if market conditions worsen.

From a credit risk perspective, while PSW’s affiliation with PVFCCo is a stabilizing factor, its declining revenue and asset base highlight potential vulnerabilities. The 2024 profit recovery is a positive sign, but it may not be sustainable without consistent sales growth and better utilization of assets. For stakeholders, suppliers, and investors, these mixed signals call for cautious optimism, emphasizing the need for a thorough risk assessment before entering into significant partnerships.

Vanguard Business Information LLC (VBI) provides detailed credit and financial risk analyses of companies like SOUTH WEST PETROVIETNAM FERTILIZER AND CHEMICALS JOINT STOCK COMPANY, helping investors and businesses evaluate its operational performance, financial resilience, and market risks to make better-informed decisions.