AsemconnectVietnam - Nguyen Binh Investment Consulting once attracted attention in the market when it was able to successfully issue VND1,900 billion in bonds in the context of after-tax profit of less than VND1 billion in 2021 and 2022. In 2023, the Company's after-tax profit also only reached VND2.1 billion.

Nguyen Binh Investment Consulting Company Limited has just announced unusual information about a number of issues related to the Company's 3 outstanding bond lots. Including the contents of changing the repurchase terms according to the agreement with the bondholders, the repurchase rights of the issuing organization.
Specifically, the amendment states that the issuing organization may repurchase part or all of the bonds at any time according to the provisions including the repurchase price of each bond and the payment conditions will be decided by the issuing organization (to avoid confusion, the issuing organization may decide on the payment method in assets instead of cash) as long as the purchase price and payment conditions must be clearly stated in the repurchase plan and must be applied equally to all bondholders....
According to information published on the Hanoi Stock Exchange (HNX), Nguyen Binh Investment Consulting is currently circulating 3 bond lots including: bond lot NBCCH2126001, bond lot NBCCH2124002 and bond lot NBCCH2124003, with a total value of VND1,900 billion.
Of which, the NBCCH2126001 bond lot is worth VND400 billion, issued on May 24, 2021 with a term of 5 years, maturity date is May 24, 2026.
The NBCCH2124002 bond lot is worth VND1,000 billion, issued on June 21, 2021, with a term of 3 years, maturity date is June 21, 2024.
The NBCCH2124003 bond lot is worth VND500 billion, issued on July 21, 2021, with a term of 3 years, maturity date is July 21, 2024.
The organization registering and depositing all 3 bond lots above is Smartmind Securities Joint Stock Company (Former name: KS Securities Joint Stock Company).
Thus, by the end of June and July 2024, Nguyen Binh Investment will have VND1,500 billion of bonds due to maturity. However, on May 16, 2024, Nguyen Binh Investment Consulting announced the extension of the bond lots from 3 years to 5 years, pushing the bond maturity date to 2026.
Also according to data from HNX, although recording a modest after-tax profit compared to the capitalization scale of the enterprise, in recent years Nguyen Binh Investment has still paid the bond interest payment on time.
In 2023 alone, the Company paid nearly VND200 billion in bond interest for 3 bond lots worth VND1,900 billion of outstanding bonds. In the first half of 2024, the Company also paid more than VND160 billion in bond interest.
The periodic financial information disclosure for the first half of 2024 shows that the financial situation of Nguyen Binh Investment Consulting has not improved much.
Specifically, in the first half of 2024, the Company recorded equity at VND305 billion, down 10.5% over the same period last year.
The debt/equity ratio was 12.37 times, equivalent to debt at VND3,772.8 billion. Outstanding bonds/equity increased from 5.57 times in the first half of 2023 to 6.19 times in the first half of 2024, equivalent to outstanding bonds at VND1,887.9 billion.
Notably, in the first half of 2024, Nguyen Binh Investment Consulting recorded after-tax profit at VND1.7 billion, while in the same period last year it reached VND39.8 billion, a decrease of more than 23 times.
Nguyen Binh Investment Consulting once attracted attention in the market when it was able to successfully issue VND1,900 billion in bonds in the context of after-tax profit of less than VND1 billion in 2021 and 2022. In 2023, the Company's after-tax profit also only reached VND2.1 billion.
Not to mention, although the business situation did not improve much, the Company still convinced bond investors to continue to extend the above 2 bond lots for 2 more years (from 2024 to 2026).
N.Nga
Source: VITIC/Tinnhanhchungkhoan