AsemconnectVietnam - Hoa Sen Group Corporation (HSG - HOSE) has just announced documents for the 2025 Annual General Meeting of Shareholders (fiscal year 2024 - 2025), the meeting is expected to be held on March 18, in Ho Chi Minh City.

Accordingly, Hoa Sen has proposed 2 business scenarios for the 2024-2025 fiscal year. In the first scenario, HSG targets output of 1.8 million tons, net revenue of VND35,000 billion and consolidated profit after tax of VND400 billion. In the second scenario, HSG targets output of 1.95 million tons, net revenue of VND38,000 billion and profit after tax of VND500 billion.
According to the Company's Board of Directors, the cautious business plan is based on the forecast that in 2025, the world economic situation will remain unstable, causing the export of corrugated iron and steel to face many challenges, making it difficult to ensure stable market share; while in the domestic market, domestic consumption demand is low, the supply of corrugated iron and steel products is in excess; competition between businesses in the same industry is increasingly fierce, making it difficult to ensure profit margins.
At the end of the 2023-2024 fiscal year, Hoa Sen recorded net revenue of VND39,272 billion, consolidated profit after tax of VND515 billion, respectively exceeding 9% and 3% compared to the targets set in the high plan. At the meeting, the Company will also seek opinions to approve the dividend plan for the 2023-2024 fiscal year, with an expected cash dividend rate of 5%.
Notably, the Board of Directors will submit to the meeting for approval the plan to buy back 50-100 million treasury shares from capital surplus, undistributed profit after tax and/or other sources as prescribed by law. According to HSG's management board, this move is to protect shareholders' interests in the context of complicated stock market developments.
The method of treasury stock trading is order matching and/or negotiation, the purchase price and implementation time will depend on market developments and comply with HOSE's trading regulations.
In addition, at the meeting, Hoa Sen will also approve the report on the orientation, roadmap, and implementation plan of the Company's restructuring policy. In particular, the Company will plan to issue 35 million shares of Hoa Sen Plastics JSC to strategic investors. After the issuance, HSG's ownership in Hoa Sen Plastics will decrease from 99% to below 50% and become an affiliated company.
Regarding the construction materials and interior distribution business, in 2025 - 2026, Hoa Sen will establish Hoa Sen Home Joint Stock Company with an ownership ratio of over 99%. If conditions are favorable when Hoa Sen Home Joint Stock Company implements the plan to offer shares to the public and list shares, Hoa Sen Home Joint Stock Company will gradually become an affiliated company (Hoa Sen Group owns less than 50% of charter capital).
Regarding business activities, in the first quarter of the 2024 - 2025 fiscal year (from October 1 to December 31, 2024), Hoa Sen recorded revenue of VND10,221.7 billion, up 12.7% over the same period; profit after tax reached VND165.53 billion, up 60.1% over the same period.
Thus, compared to the second business plan (high plan), by the end of the first quarter of FY 2024 - 2025, Hoa Sen has completed 26.9% and 33.1% of the set targets.
N.Nga
Source: VITIC/Tinnhanhchungkhoan