AsemconnectVietnam - Reducing financial costs and increasing profits of joint ventures and affiliates helps I.P.A Investment Group Joint Stock Company (code IPA - HNX) record profits again in the first quarter of 2024.

In the first quarter of 2024, I.P.A Investment recorded revenue of VND85.55 billion, an increase of 34.1% over the same period, profit after tax recorded a profit of VND104.85 billion compared to the same period of loss of VND136.15 billion, an increase of VND241 billion. In particular, gross profit margin decreased sharply from 43.7%, to 31.6%.
During the period, gross profit decreased by 3.1%, equivalent to a decrease of VND0.86 billion, to VND27.01 billion; Financial revenue decreased by 38.2%, equivalent to a decrease of VND30.36 billion, to VND49.14 billion; Financial costs decreased by 71%, equivalent to a decrease of VND193.47 billion, to VND130.92 billion; Joint venture and affiliated company profits increased by 198%, equivalent to an increase of VND86.99 billion, to VND130.92 billion; Sales and corporate management expenses increased by 5.7%, equivalent to an increase of VND0.92 billion, to VND17.12 billion and other activities did not fluctuate significantly.
Thus, in the first quarter of 2024, although gross profit decreased, profit after tax increased sharply, shifting from loss to profit, mainly due to reducing financial costs and increasing profits from joint ventures and associates.
I.P.A Investment further explained that financial costs decreased mainly due to last year's provision for a decrease in stock prices and investment losses of VND163.3 billion, but this year the return was VND19.2 billion, or a decrease of VND182.5 billion.
As of March 31, 2024, I.P.A Investment's total assets increased slightly by 0.8% compared to the beginning of the year, equivalent to an increase of VND71.6 billion, to VND8,907.7 billion. Of which, assets mainly invested in long-term financial investments recorded VND5,925.8 billion, accounting for 66.5% of total assets; Short-term receivables recorded VND1,300.1 billion, accounting for 14.6% of total assets.
During the period, assets fluctuated strongly, mainly long-term financial investments, increasing by 20.3% compared to the beginning of the year, corresponding to an increase of VND998.1 billion, to VND5,925.8 billion; Short-term receivables decreased by 45.7% compared to the beginning of the year, corresponding to a decrease of VND1,094.8 billion, to VND1,300.1 billion...
Regarding investments in joint ventures and affiliated companies, as of March 31, 2024, I.P.A Investment said it had invested VND4,295.1 billion in VNDirect Securities Joint Stock Company (code VND – HOSE floor), correspondingly owns 25.84% of charter capital; Regarding capital investment in other units, for the first time, I.P.A Investment recorded an investment of VND850 billion in Trung Nam Renewable Energy Joint Stock Company (accounting for 9.36% of charter capital), as well as investing VND928.4 billion into Century Real Estate Joint Stock Company (CRE code - HOSE), equivalent to 10.91% of charter capital, provision of up to VND474 billion has been made into CRE shares, corresponding to a temporary loss of 51.1 % The total value of investment.

As for capital, by the end of the first quarter of 2024, the total short-term and long-term debt of I.P.A Investment decreased by 9.4% compared to the beginning of the year, corresponding to a decrease of VND411 billion, to VND3,981.5 billion and equal to 95.1% equity (equity is VND4,187.2 billion).
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Source: VITIC/Tinnhanhchungkhoan