AsemconnectVietnam - Nam Kim Steel (NKG) terminated the investment project of Nam Kim Chu Lai Steel Pipe Factory; Hoa Sen (HSG) plans to IPO the plastic production and business segment; Hoa Phat (HPG) reaches VND6,800 billion profit after tax in 2023.

Nam Kim Steel (NKG)
Nam Kim Steel Joint Stock Company (code NKG - HOSE) approved the termination of an investment project in Quang Nam province.
Nam Kim Steel approved the termination of the investment project of Nam Kim Chu Lai Steel Pipe Factory by the Management Board of Chu Lai Open Economic Zone (now the Management Board of Economic Zones and Industrial Parks of Quang Nam province) first licensed on June 9, 2020.
It is known that as of September 30, 2023, Nam Kim Steel owns 100% capital in Nam Kim Chu Lai Steel Pipe Company Limited, address at Street 01, Tam Hiep Port Logistics Industrial Park, Tam Hiep Commune, Nui Thanh district, Quang Nam province. Of which, the investment value is VND37.55 billion.
In terms of business activities, in the third quarter of 2023, Nam Kim Steel recorded revenue of VND4,262.06 billion, down 3.7% over the same period, profit after tax recorded a profit of VND23.66 billion compared to with a loss of VND418.69 billion in the same period, an increase of VND442.35 billion. In particular, gross profit margin has moved from negative 3.6%, to positive 4.8%.
Accumulated in the first 9 months of 2023, Nam Kim Steel recorded revenue of VND14,136.76 billion, down 24.7% over the same period and profit after tax recorded VND109.74 billion, down 62.1% over the same period last year.
It is known that in 2023, Nam Kim Steel sets a business plan with a total revenue of VND20,000 billion, an increase of 13.5% over the same period and an expected pre-tax profit of VND400 billion compared to the same period loss of VND106.91 billion, an increase of VND506.91 billion.
Thus, at the end of the first 9 months of 2023 with a pre-tax profit of VND146.97 billion, Nam Kim Steel has completed 36.7% of the year's profit plan.
Hoa Sen (HSG)
Just planning to return to the real estate sector, Hoa Sen Group Joint Stock Company (HSG code - HOSE exchange) plans to IPO the plastic business.
Hoa Sen has just released its Annual Report for the 2022-2023 year. Although it did not announce the financial plan for the new year, the Company did share its development strategy.
In particular, regarding the investment plan, in the fiscal year 2023-2024, Hoa Sen said that for the plastic production and business segment, the Company continues to consolidate and improve the operational efficiency of Hoa Sen Plastic Joint Stock Company, gradually implementing the initial public offering (IPO) when it has prepared enough resources and market conditions allow, expected from 2024 to 2026.
Regarding the construction materials and furniture distribution business, the Company continues to consolidate and improve the business efficiency of the Hoa Sen Home system, preparing enough resources to establish Hoa Sen Furniture - Construction Materials Distribution Joint Stock Company, at the same time planning to transfer the construction materials and furniture distribution segment to Hoa Sen Home Joint Stock Company at a suitable time, expected from 2024 to 2026.
It is known that after 2 years since its establishment, Hoa Sen Home chain currently has 114 stores in 3 regions of the country.
Recently, Rong Viet Securities Company (VDSC) made a forecast for Hoa Sen's 2023 - 2024 financial picture.
In particular, this analyst unit forecasts that in the fiscal year 2023-2024, Hoa Sen Group will record revenue of about VND34,800 billion, an increase of 10% over the same period; The parent company's after-tax profit recorded about VND782 billion (same period profit was VND30.01 billion).
Hoa Sen contributes capital to a new company to participate in real estate projects
In the last days of 2023, Hoa Sen attracted the attention of investors when it planned to return to investing in real estate projects. In particular, the Company approved the investment policy in the form of capital contribution at a rate of 40% to establish Hoa Sen Saigon Joint Stock Company, expected to be implemented in January 2024 and Mr. Tran Ngoc Chu, the permanent Vice President and executive Chairman of the Board of Directors will be the representative of the capital contribution.
This company will operate in the field of real estate business, performing the task of searching for real estate worth VND1,000 - VND3,000 billion to develop office - commercial center - housing projects; Arranging office space for Hoa Sen Group; lease; or consider transfer.
"After contributing capital to establish a new company, if the market situation changes or the Group needs to recover investment capital, Hoa Sen will transfer its capital contribution to existing shareholders of the company. Hoa Sen Saigon Joint Stock Company, with the transfer value equal to the original value plus interest calculated according to the average interbank interest rate at the time of transfer," Hoa Sen said in the resolution.
It is known that Hoa Sen Saigon Joint Stock Company will have a charter capital of VND100 billion; Headquartered at 22 -24 Nguyen Co Thach, Sala Urban Area, An Loi Dong Ward, Thu Duc City, Ho Chi Minh City.
In fact, over the past many years, Hoa Sen has also continuously wanted to expand into the real estate field in addition to the galvanized steel industry, but the results were not as expected.
In particular, in 2009, Hoa Sen planned to invest in 5 projects including Hoa Sen - Pho Dong high-rise apartment complex (District 9, Ho Chi Minh City); Hoa Sen Phuoc Long B apartment project (District 9, Ho Chi Minh City); Hoa Sen Riverview apartment project (District 9, Ho Chi Minh City); Hoa Sen Group Headquarter Office project (District 2, Ho Chi Minh City); contributing 45% of capital to the Hoa Sen - Gemadept International Port project.
However, two years later, the Company transferred and withdrew capital from all 4 projects, leaving only the Hoa Sen - Pho Dong project.
By 2016, Hoa Sen established 4 companies in the real estate sector including Hoa Sen Yen Bai Joint Stock Company, Hoa Sen Hoi Van Joint Stock Company, Hoa Sen Van Hoi Joint Stock Company and Hoa Sen Quy Nhon Joint Stock Company.
Currently, Hoa Sen only has 1 unit operating in the real estate sector, Hoa Sen Yen Bai Joint Stock Company (established in 2016). This company received additional capital from Hoa Sen Group in February 2023, increasing its charter capital from VND340 billion to VND421 billion. Hoa Sen Group's ownership ratio at Hoa Sen Yen Bai Company is 95.96%.
Hoa Sen Group Joint Stock Company has just announced the consolidated financial report for the first quarter of the fiscal year (FY) 2023-2024 (from October 1, 2023 to December 31, 2024).
Accordingly, in the first quarter of the fiscal year 2023-2024, HSG recorded revenue of VND9,703 billion, an increase of 15% over the same period. In particular, HSG's gross profit margin has recovered strongly from 2% in the first quarter of the fiscal year 2022-2023 to 11% in the first quarter of the fiscal year 2023-2024, helping the gross profit reach VND960 billion in the first quarter. Fiscal year 2023-2024, increased 5 times over the same period.
HSG's financial expenses, including interest expenses and exchange rate differences, have decreased by 56%, from VND114 billion in the first quarter of the fiscal year 2022-2023 to VND50 billion in the first quarter of the fiscal year 2023-2024.
Specifically, interest expenses decreased by 47%, from VND48 billion to VND25 billion due to HSG's efforts to negotiate the best loan interest rates. Exchange rate difference costs decreased by 63%, from VND65 billion in the first quarter of the fiscal year 2022-2023 to VND24 billion in the first quarter of the fiscal year 2023-2024. Exchange rate difference costs are recorded as losses due to exchange rate differences from import and export activities and settlement of outstanding loans in USD.
In the first quarter of the fiscal year 2023-2024, HSG maintained that it did not accept loans in USD, so even though the USD/VND exchange rate was complicated, it did not seriously affect the cost of exchange rate differences. Therefore, the main cause affecting the cost of exchange rate differences is from import of raw materials and export.
In contrast, financial revenue is the revenue recorded due to exchange rate differences from import and export activities, deposit interest, and profit from other financial activities of HSG increased by 37% over the same period from VND32 billion increased to VND44 billion, mainly from exchange rate difference profits from HSG's export activities. Export revenue in the first quarter of the fiscal year 2023-2024 accounted for 43% of total revenue and increased 10% over the same period.
Thanks to the combination of the above factors, HSG's profit after tax also improved positively from negative VND680 billion in the first quarter of the fiscal year 2022-2023 to VND103 billion in the first quarter of the fiscal year 2023-2024.
HSG said that in the coming time, it will continue to focus on enhancing the operational efficiency of the production system, distribution system, and warehouses nationwide; maintain and expand export channels and product portfolio; Focus on strengthening internal strength and accumulating resources to take full advantage of market opportunities.
Hoa Phat (HPG)
In the fourth quarter of 2023, Hoa Phat Group (HPG) recorded revenue of VND34,925 billion, up 33% over the same period in 2023. Profit after tax recorded VND2,969 billion, up 249% over the same period in 2022.
Accumulated for the whole year 2023, Hoa Phat will reach VND120,355 billion in revenue, down 16% compared to the previous year. Profit after tax is VND6,800 billion, equivalent to completing 85% of the year plan.
In 2023, Hoa Phat produced 6.7 million tons of crude steel, down 10% compared to 2022. Sales of HRC steel products, construction steel, high quality steel and steel billets reached 6.72 million tons, down 7%. Of which, construction steel and high quality steel reached 3.78 million tons, down 11% over the same period last year. HRC hot rolled steel recorded nearly 2.8 million tons, up 6% compared to 2022.
In addition to traditional steel product lines, Hoa Phat has invested in deep processing, promoting the production of high quality steel to serve domestic and export needs. Hoa Phat steel export market expands to 39 countries and territories worldwide.
Regarding steel pipe products, Hoa Phat has provided 685,000 tons to the market, down 9% compared to 2022. Galvanized steel of all kinds reached the same level as the previous year when it reached 329,000 tons.
With a crude steel capacity of 8.5 million tons/year, the largest in Vietnam and Southeast Asia, Hoa Phat leads the market share in Vietnam in construction steel, steel pipes, Top 5 largest manufacturers of galvanized steel sheets. , and is the only Vietnamese enterprise that can produce HRC steel, prestressed steel cables and many types of high quality steel.
Other business areas also made their mark with the official supply of container shell products to the market from the beginning of August 2023. Also in August, Hoa Phat put the first berth of the general container port in Dung Quat - Quang Ngai into operation to serve the cargo loading and unloading needs of businesses in Dung Quat Economic Zone and surrounding areas. The field of household appliances expands sales channels, continuously introducing a series of new products such as large freezers, washing machines, water dispensers, new generation water purifiers, air coolers, and induction cookers, infrared stove, dishwasher... meet the needs of the market.
Regarding the agricultural segment, HPG invests in animal feed factories, pig, cow, and chicken farms across the country with the goal of maintaining its position and market share in the leading group of clean chicken eggs, commercial pigs supplied to the market. In particular, Hoa Phat poultry exceeded the output of 300 million eggs for the first time, launching pink shell chicken eggs. Hoa Phat also continues to invest in expanding existing industrial parks in Hung Yen and Ha Nam, creating more clean land funds and technical infrastructure to serve the production and business investment needs of domestic and foreign enterprises.
Up to now, Dung Quat 2 Project has reached 45% progress, according to the proposed plan. When completed, the Group's steel production capacity will reach more than 14 million tons of crude steel/year, bringing Hoa Phat into the Top 30 largest steel enterprises in the world from 2025.
N.Nga
Source: VITIC/Tinnhanhchungkhoan