AsemconnectVietnam - Returning to profit in the first 9 months of 2024 thanks to the sale of assets and investments, SMC Trading Investment JSC (code SMC - HOSE) continues to plan to make a profit in 2025.

SMC Trading Investment has just approved the 2025 business plan with a total consumption output of 620,000 tons of various types of steel and an expected after-tax profit of VND30 billion.
Thus, compared to the profit plan of VND80 billion in 2024, the profit plan for 2025 has decreased by 62.5% compared to the plan for 2024.
In fact, despite the ambitious profit plan for 2024, the actual business situation of SMC Investment and Trade is still far behind the plan, the company only escaped losses thanks to the sale of assets and investments with high liquidity.
Specifically, in the third quarter of 2024, SMC Investment and Trade recorded revenue of VND2,276.51 billion, down 27.5% over the same period; after-tax profit recorded a loss of VND82.42 billion compared to the same period of a loss of VND178.15 billion.
Accumulated in the first 9 months of 2024, SMC Investment and Trade recorded revenue of VND6,747.23 billion, down 36.2% over the same period, after-tax profit recorded a profit of VND6.8 billion compared to the same period of loss of VND585.95 billion, an increase of VND592.75 billion.
Explaining the slight profit of VND6.8 billion in the first 9 months of 2024, SMC Investment and Trade said that the steel market still faces many difficulties when steel prices decrease, domestic consumption demand is poor because the real estate industry has not really stabilized, recovered, negatively and directly affected output. In addition, business performance in the first 9 months of 2024 mainly comes from financial activities and asset transfers.
Thus, ending the first 9 months of 2024 with a profit of VND6.8 billion, SMC Investment and Trade has only completed 8.5% of the profit plan of VND80 billion.
In fact, although it made a profit again in the first 9 months of 2024, as of September 30, 2024, SMC Investment and Trade still had an accumulated loss of VND146.97 billion, equal to 19.9% of charter capital (charter capital of VND736.8 billion).
N.Nga
Source: VITIC/Tinnhanhchungkhoan