AsemconnectVietnam - Nam Kim Steel JSC (code NKG - HOSE) recorded a profit of VND219.63 billion in the second quarter of 2024, with a cumulative profit of VND369.7 billion in the first half of 2024, up 385.7% over the same period.

In the second quarter of 2024, Nam Kim Steel recorded revenue of VND5,660.5 billion, up 2.9% over the same period, and after-tax profit of VND219.63 billion, up 75.2% over the same period last year. Of which, gross profit margin remained at 9%.
It is known that after losing money for three consecutive quarters from Q3/2022 to Q1/2023, Nam Kim Steel has returned to recording positive profits in the last four quarters, Q2/2023 recorded a profit of VND125.39 billion, Q3/2023 recorded a profit of VND23.66 billion, Q4/2023 recorded a profit of VND22.45 billion and Q1/2024 recorded a profit of VND150.1 billion. Returning to the financial report for Q2/2024, in Q2, Nam Kim Steel's gross profit increased by 3.1% over the same period, equivalent to an increase of VND15.61 billion, to VND511.95 billion; financial revenue increased by 124.7%, equivalent to an increase of VND63.06 billion, to VND113.62 billion; Financial expenses decreased by 44.3%, equivalent to a decrease of VND55.68 billion, to VND 69.94 billion; sales and administrative expenses increased by 11.7%, equivalent to an increase of VND29.64 billion, to VND283.97 billion, and other activities fluctuated insignificantly.
Thus, in the second quarter of 2024, Nam Kim Steel recorded a sharp increase in profit mainly due to an increase in gross profit, an increase in financial revenue, and a sharp decrease in financial expenses.
Explaining the sharp increase in profit in the second quarter, Mr. Vo Hoang Vu, General Director of Nam Kim Steel, said that the growth rate of revenue was higher than the growth rate of cost of goods sold thanks to the Company's promotion of domestic and export sales channels.
Accumulated in the first half of 2024, Nam Kim Steel recorded revenue of VND 10,951.63 billion, an increase of 10.9% over the same period; pre-tax profit reached VND 460.39 billion; after-tax profit reached VND 369.7 billion, up 385.7% over the same period last year.
It is known that in 2024, Nam Kim Steel plans to have total revenue of VND21,000 billion, up 12.8% over the same period, pre-tax profit of VND420 billion, up 137.3% compared to the implementation in 2023.
Thus, ending the first half of 2024 with pre-tax profit reaching VND460.39 billion, Nam Kim Steel has completed 109.6% of the profit plan of VND420 billion.
In terms of asset size, as of June 30, 2024, Nam Kim Steel's total assets increased by 5.4% compared to the beginning of the year, equivalent to an increase of VND663.5 billion, to VND12,898.9 billion. In which, the main assets recorded inventory were VND5,743.1 billion, accounting for 44.5% of total assets; short-term receivables recorded VND2,813.8 billion, accounting for 21.8% of total assets; fixed assets recorded VND2,180.7 billion, accounting for 16.9% of total assets; cash and short-term financial investments recorded VND772.67 billion, accounting for 6% of total assets ...
During the period, the assets with the strongest fluctuations were mainly short-term receivables, increasing by 46% compared to the beginning of the year, equivalent to an increase of VND887.1 billion, to VND2,813.8 billion; inventories increased slightly by 0.4% compared to the beginning of the year, equivalent to an increase of VND24.4 billion, to VND5,743.1 billion ...
Nam Kim Steel further explained the main inventory structure of finished products of VND2,857.2 billion; VND1,577.4 billion of raw materials and supplies; VND1,042.9 billion of goods in transit; VND212.3 billion of tools and equipment; VND183.4 billion of goods consigned for sale...
Regarding capital sources, as of the end of the second quarter of 2024, Nam Kim Steel's total short-term debt increased slightly by 0.5% compared to the beginning of the year, equivalent to an increase of VND24 billion, to VND4,791.7 billion and accounting for 37.1% of total capital sources.
N.Nga
Source: VITIC/Tinnhanhchungkhoan