AsemconnectVietnam - On December 15, 2023 Hoang Anh Gia Lai Joint Stock Company (stock code HAG - HOSE exchange) held a conference to meet investors. In particular, the management emphasized focusing on debt repayment and the goal of handling accumulated losses by the end of the second quarter of 2024.

Expected profit of over VND200 billion in the fourth quarter of 2023
Mr. Doan Nguyen Duc, Chairman of the Board of Directors of HAG, shared that business results in the fourth quarter of 2023 will not be inferior to the third quarter of 2023, with the Company's expected profit reaching over VND200 billion.
For the whole year 2023, including unusual income, Hoang Anh Gia Lai estimates a minimum after-tax profit of VND2,150 billion.
Chairman of the Board of Directors of HAG said that recently, Gia Lai Livestock Joint Stock Company - Subsidiary HAG paid VND750 billion (full principal debt of nearly VND587 billion and part of term interest of more than VND163 billion) to Eximbank since 2014. In addition, HAG has also been exempted from nearly VND1,425 billion of interest debt on loans from Debt Management and Asset Exploitation Company Limited (Eximbank AMC), including part of due interest and all overdue interest and penalties for late payment of interest.
"Including business profits and sudden profits, Hoang Anh Gia Lai expects a minimum profit of VND2,150 billion this year," Mr. Duc said.
For the 2024 target, HAG Chairman expects to be about 25% higher than the 2023 result, because next year the Company will increase the area planted with durian fruit, and although pig production will not increase, the price is expected to recover after 2023 decline.
Try to handle accumulated losses in the second quarter of 2024 so shareholders can use margin
By the end of the third quarter of 2023, the business still recorded an accumulated loss of VND2,640.6 billion.
Mr. Duc assessed that HAG is the enterprise focusing on paying the most debt on the exchange. Up to now, the Company is very aware of debt, so the current main purpose is still to repay debt. With HAG's current assets, the remaining debt is small, so the Company will be determined to handle it and become a large enterprise listed on the stock exchange with no debt.
Hoang Anh Gia Lai expects to handle accumulated losses by the end of the second quarter of 2024 so that shareholders can use margin.
At the end of November 2023, HAG also announced a list of 3 investors buying privately issued HAG shares to mobilize additional capital for debt repayment purposes, including: LPBank Securities Joint Stock Company plans to buy 50 million shares (equivalent to 4.73% after issuance), ThaiGroup Joint Stock Company bought 52 million shares (equivalent to 4.92%) and professional investor Nguyen Duc Quan Tung bought 28 million shares (equivalent to 2.65%).
Mr. Duc believes that the possibility of success of the issuance is very high because the issuance price is only 8,000 VND/share, while HAG's current market price is 13,000 VND/share, in contrast to the previous issuance.
Answering shareholders' questions about new investors joining the Board of Directors and the risk of being taken over, Mr. Duc explained that on October 23, Hoang Anh Gia Lai signed a comprehensive strategic cooperation with LPBank. On November 2, LPBank continued to sign a comprehensive cooperation agreement with Hoang Anh Gia Lai Football Academy and Football Club (HAGL), changing its name to LPBank Football Academy - Hoang Anh Gia Lai and Football Club LPBank stone - Hoang Anh Gia Lai.
In this issuance, LPBank also bought 50 million HAG shares, so in principle, if investors hold more than 10%, they must be introduced to the Board of Directors, but in reality, whether or not they are in reality, they need to wait until the Annual General Meeting of Shareholders on Only in March 2024 will it be clear. Regarding the possibility of being acquired, Mr. Duc affirmed that "being acquired is good".
Regarding HNG's debt to HAG after transferring HNG Agrico, according to HAG's Chairman of the Board of Directors, in 2022 Thaco will pay HAG VND600 billion, and in 2023 continue to pay an additional VND400 billion. According to the agreement, by the third quarter of 2024 there will be VND1,000 billion left.
"Everything so far is going according to plan and there are no delays," Mr. Duc said.
N.Nga
Source: VITIC/Tinnhanhchungkhoan