AsemconnectVietnam - Nam Kim Steel JSC (code NKG - HOSE) recorded a profit of VND64.85 billion in Q3, accumulated in the first 9 months of 2024, profit of VND434.59 billion, up 296% over the same period.

In Q3/2024, Nam Kim Steel recorded revenue of VND5,188.27 billion, up 21.7% over the same period, profit after tax recorded a profit of VND64.85 billion, up 174.1% over the same period last year. In which, gross profit margin improved from 4.8% to 8.7%.
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 six 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, Q1/2024 recorded a profit of VND150.1 billion, Q2/2024 recorded an additional profit of VND219.63 billion; and Q3/2024 continued to make a profit. Returning to the financial report, in Q3, Nam Kim Steel's gross profit increased by 120.3% over the same period, equivalent to an increase of VND246.68 billion, to VND451.65 billion; financial revenue decreased by 24.4%, equivalent to a decrease of VND19.28 billion, to VND59.67 billion; Financial expenses increased by 39.7%, equivalent to an increase of VND33.55 billion, to VND118.03 billion; sales and administrative expenses increased by 83%, equivalent to an increase of VND140.93 billion, to VND310.66 billion, and other activities fluctuated insignificantly.
Thus, in the third quarter, Nam Kim Steel recorded a sharp increase in gross profit, while also facing pressure from a sharp increase in financial, sales and administrative expenses.
Accumulated in the first 9 months of 2024, Nam Kim Steel recorded revenue of VND16,139.9 billion, an increase of 14.2% over the same period; profit after tax reached VND434.59 billion, an increase of 296% over the same period last year.
It is known that in 2024, Nam Kim Steel plans to have a total revenue of VND21,000 billion, an increase of 12.8% over the same period, and a pre-tax profit of VND420 billion, an increase of 137.3% compared to the implementation in 2023.
Thus, ending the first 9 months of 2024 with a pre-tax profit of VND542.54 billion, Nam Kim Steel has completed 129.2% of the profit plan of VND420 billion.
Contrary to the bright business plan, in the first 9 months of 2024, Nam Kim Steel unexpectedly recorded a negative main business cash flow of VND739.2 billion compared to the same period of positive VND483.5 billion. In addition, also in the period, investment cash flow was negative VND796.9 billion and financial cash flow was positive VND1,290.7 billion, mainly due to increased debt.
It is known that Nam Kim Steel has experienced two consecutive years of negative cash flow, in 2021 it recorded a negative VND308.27 billion, in 2022 it continued to be negative VND827.9 billion and has just returned to positive VND268.6 billion in 2023. In terms of asset size, as of September 30, 2024, Nam Kim Steel's total assets increased by 12.6% compared to the beginning of the year, equivalent to an increase of VND1,546.7 billion, to VND13,782.1 billion. Of which, the main assets in inventory were recorded at VND6,576.8 billion, accounting for 47.7% of total assets; short-term receivables were recorded at VND2,561.4 billion, accounting for 18.6% of total assets; Fixed assets recorded VND2,107.2 billion, accounting for 15.3% of total assets ...
During the period, the assets that fluctuated the most were short-term receivables, which increased by 32.9% compared to the beginning of the year, equivalent to an increase of VND634.7 billion, to VND2,561.4 billion; inventories increased by 15% compared to the beginning of the year, equivalent to an increase of VND858.1 billion, to VND6,576.8 billion ...
Nam Kim Steel further explained the main inventory structure of VND2,701.2 billion of finished products; VND1,860.4 billion of raw materials; VND1,743 billion of goods in transit; VND201.5 billion of tools and instruments; VND200.78 billion of goods consigned for sale. In which, the increase in inventories was mainly related to goods in transit.
Regarding capital sources, by the end of the third quarter, Nam Kim Steel's total short-term debt (the company only uses short-term debt, not long-term debt) increased by 26.8% compared to the beginning of the year, equivalent to an increase of VND241,276.7 billion, up to VND6,044.4 billion and equal to 103.3% of total equity (at the beginning of the year, the outstanding debt was only VND4,767.7 billion and equal to 87.9% of total equity).
N.Nga
Source: VITIC/Tinnhanhchungkhoan