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Business activities of steel companies in March 2024 

 Sunday, March 31,2024

AsemconnectVietnam - Nam Kim Steel (NKG) plans to hold the 2024 Annual General Meeting of Shareholders at the end of April 2024; Hoa Sen (HSG) plans to issue 5 million ESOP shares at a 56% discount; Hoa Phat (HPG) sets a target of VND10,000 billion profit in 2024, paying 10% dividend.

Nam Kim Steel
Nam Kim Steel Joint Stock Company (code NKG - HOSE) approved the plan to organize the 2024 Annual General Meeting of Shareholders, the meeting is expected to be held on April 26.
On March 21, Nam Kim Steel will finalize the list of shareholders attending the 2024 Annual General Meeting of Shareholders, which is scheduled to be held on April 26 in HoChiMinh City.
In the upcoming Congress, Nam Kim Steel plans to present shareholders with business results in 2023, orientation for 2024, profit distribution plan for 2023 and 2024...
From February 5 to March 4, 2024, SMC Trading Investment Joint Stock Company (code SMC - HOSE) registered to sell all 13.1 million NKG shares, reducing ownership from 4.98%, about 0% of charter capital.
It is known that Ms. Nguyen Ngoc Y Nhi is a Member of the Board of Directors of SMC Trade Investment and also a Member of the Board of Directors of Nam Kim Steel.
In terms of business activities, in the fourth quarter of 2023, Nam Kim Steel recorded revenue of VND4,459.2 billion, an increase of 3.7% over the same period, profit after tax reached VND22.45 billion compared to the same period last year. The loss was VND414.33 billion, an increase of VND436.78 billion.
Cumulatively in 2023, Nam Kim Steel recorded revenue of VND18,595.97 billion, down 19.4% over the same period, profit after tax reached VND117.41 billion compared to the same period loss of VND124.68 billion, which is an increase of VND242.09 billion.
It is known that in 2023, Nam Kim Steel sets a business plan with a total revenue of VND20,000 billion, an increase of 13.5% over the same period and an expected pre-tax profit of VND400 billion compared to the same period loss of VND106.91 billion, an increase of VND506.91 billion.
Thus, at the end of 2023 with a pre-tax profit of VND177.3 billion, Nam Kim Steel only completed 44.3% of the profit plan of VND400 billion.
Hoa Sen
Hoa Sen Group Joint Stock Company (HSG code - HOSE) announced additional documents for the Annual General Meeting of Shareholders on March 18, 2024, the meeting is expected to be held in Ho Chi Minh City.
First, Hoa Sen Group added a proposal for the employee incentive stock issuance program (ESOP) for leaders, administrators, executives, managers, and key personnel.
In particular, Hoa Sen Group will issue 5 million ESOP shares at a price of 10,000 VND/share and the shares will be restricted from transfer for 1 year.
With the closing price on February 29 of 22,750 VND/share, Hoa Sen Group's Board of Directors will buy shares at a 56% discount compared to the currently trading market price.
The second additional proposal, Hoa Sen Group submitted to shareholders to approve policies related to investment in expanding industries and fields. In particular, through the policy of researching, promoting, and deploying investment to expand new industries and fields with potential and feasibility in many fields including finance; bank; stock; insurance; real estate; exact mechanics; mechanical engineering; semiconductor technology; developing office, housing, residential and urban area projects; educations; health care; tourism, ecology, relaxation...
Hoa Sen Group added that the maximum total investment for the expanded field does not exceed VND5,000 billion.
Hoa Sen aims to increase profits by 10 times in the 2023-2024 fiscal year and plans to list a series of subsidiaries.
Previously, in the upcoming General Meeting of Shareholders document, in the fiscal year 2023-2024 (from October 1, 2023 to September 30, 2024), Hoa Sen Group set a business plan with two script. In particular, scenario 1 with consumption output of 1,625 thousand tons, up 13.3% over the same period, expected revenue of VND34,000 billion, up 7.4% over the same period and expected profit after tax of VND400 billion, an increase of 12.33 times compared to implementation in the 2022-2023 fiscal year.
Scenario 2, total consumption is estimated at 1,730 thousand tons, up 20.7% over the same period, estimated revenue is VND36,000 billion, up 13.7% over the same period, and expected profit after tax VND500 billion, an increase of 15.67 times compared to implementation in the 2022-2023 fiscal year.
Previously, in the fiscal year 2022 - 2023 (from October 1, 2022 to September 30, 2023), Hoa Sen Group recorded revenue of VND31,650.7 billion, down 36.3% compared to same period and profit after tax recorded VND30.06 billion, down 88% over the same period. In particular, gross profit margin decreased from 9.9%, to only 9.7%.
It is known that in the 2022 - 2023 fiscal year, Hoa Sen Group sets its business plan based on two scenarios.
In the first scenario, with a finished product output of 1.4 million tons, the Company plans a revenue of VND34,000 billion, down 32% over the same period and an expected profit after tax of VND100 billion, down 60% over the same period last year.
The second scenario is more positive with finished product output of 1.5 million tons, estimated revenue of VND36,000 billion, down 28% over the same period and expected profit after tax of VND300 billion, up 20% over the same period last year.
Thus, at the end of the fiscal year 2022 - 2023, with a profit of only VND30.06 billion, Hoa Sen Group completed 30.1% of the conservative plan of VND100 billion and completed 10% compared to the positive plan of profit of VND300 billion.
By completing only 30% of the conservative plan and 10% of the aggressive plan, in the upcoming General Meeting, Hoa Sen Group will present shareholders with a dividend payment plan for the 2022-2023 year at a rate of 5% in cash.
Continue restructuring to soon list Hoa Sen Plastic Joint Stock Company
In addition, also in the upcoming Congress, Hoa Sen Group will also submit to shareholders to approve the policy of restructuring and specializing in steel pipe production and trading. In particular, Hoa Sen Plastic Joint Stock Company, after receiving the transfer of the plastic production and business segment, has come into effective operation, showing high proactiveness in management and operations for the production and plastic business segment.
In the future, Hoa Sen Plastic Joint Stock Company will issue shares to the public and list shares on the Stock Exchange.
Therefore, Hoa Sen Group submits to shareholders to consider converting Hoa Sen Phu My One Member Company Limited to Hoa Sen Steel Pipe Joint Stock Company with 99% of charter capital owned by Hoa Sen Group, which will take over entire infrastructure serving steel pipe production and business activities, expected implementation time and roadmap from 1 to 5 years.
After Hoa Sen Steel Pipe Joint Stock Company completes taking over the steel pipe production segment and enters stable and profitable operations, the Company will submit to shareholders for consideration and approval of the plan to issue shares to the public and list them.
For the Hoa Sen Home system, Hoa Sen Group will continue to consolidate and improve operational efficiency, production and business efficiency, and prepare the best conditions for the transformation of the Hoa Sen Home system into Hoa Sen Home Joint Stock Company.
Regarding personnel, after the end of the 2018-2023 term, Hoa Sen Group will also re-elect the Board of Directors for the new term 2024-2029.
Hoa Phat
In February 2024, Hoa Phat Group (HPG - HOSE) produced 690,000 tons of crude steel, equivalent to the previous month due to the impact of the Tet holiday.
Sales volume of hot rolled coil (HRC) steel products, construction steel, high quality steel and billet steel supplied to the market reached 518,000 tons, down 19% compared to the first month of the year.
Hoa Phat steel consumption volume decreased mainly due to the extended Lunar New Year holiday, combined with general market demand that has not improved. Construction steel and high quality steel recorded 212,000 tons, down 42% compared to January 2024. Hoa Phat also provided more than 38,000 tons of steel billet to domestic and foreign markets, of which exports contributed 25,000 tons.
HRC steel reached 266,000 tons, down 3% compared to last January, mainly because the export market decreased compared to the first month of the year. The domestic market still recorded increased output in all three regions.
In addition, Hoa Phat also supplied to the market 41,000 tons of steel pipes and 32,000 tons of galvanized steel sheets, down 15% and 5% respectively compared to the first month of the year.
Cumulatively in the past 2 months, Hoa Phat Group produced 1.38 million tons of crude steel, an increase of 71% over the same period in 2023. Sales of HRC steel products, construction steel, high quality steel, steel billets reaching 1.15 million tons, up 32% over the same period.
Of which, construction steel and high quality steel reached 575,000 tons, down 2% compared to the first 2 months of 2023. HRC steel contributed 542,000 tons, doubling over the same period last year.
With HRC downstream products, Hoa Phat Steel Pipe recorded 88,000 tons after 2 months, down 17%. Galvanized corrugated iron of all kinds reached an output of 66,000 tons, an increase of 39%, mainly thanks to better corrugated iron export output in the past 2 months compared to the same period in 2023.
According to the Vietnam Steel Association report, Hoa Phat holds the No. 1 market share in Vietnam in construction steel and steel pipes with 36% and 25.27% respectively, at the end of January 2024.
HPG has just announced the 2024 Annual General Meeting of Shareholders meeting documents, which presented the production and business plan for 2024 with ambitious goals.
The annual general meeting of shareholders of Hoa Phat Group is scheduled to take place on the morning of April 11 at the Grand Ballroom, Melia Hanoi Hotel.
In the document submitted to the Congress, Hoa Phat expected the Group's total revenue to reach VND140,000 billion, profit after tax of VND10,000 billion. With this plan, Hoa Phat's revenue and profit after tax will increase by 17% and 46% respectively compared to 2023 results.
Hoa Phat also submitted to the Congress a plan to use/divide undistributed after-tax profits accumulated until December 31, 2023 and proposed a plan to set aside funds from business resources in 2024.
Specifically, in 2023, HPG records a total accounting profit before tax of VND7,793 billion, profit after corporate income tax of VND6,800 billion. The company plans to use VND480 billion to set up funds, including VND340 billion for the Bonus and Welfare Fund (5% of profit after tax), VND68 billion to remunerate the Board of Directors and Supervisory Board (1% of profit after tax). The remainder after setting aside funds will be VND6,392 billion in undistributed profits.
In 2024, Hoa Phat plans to deduct a maximum of 5% of actual profits for the Bonus and Welfare Fund and a maximum of 5% of after-tax profits exceeding the plan to reward the HPG Executive Board and the Executive Boards of member companies. The company also plans to pay a 10% dividend.
It is expected to issue nearly 600 million shares to increase charter capital
At the Congress, HPG will also present a plan to increase charter capital in 2024 through issuing shares to increase share capital from equity capital in 2023.
Specifically, the expected number of shares issued is 581,478,570 shares, the total expected issuance value at par value is more than VND5,814 billion. Issuance rate is 10%, meaning shareholders owning 10 shares will receive 1 share.
It is expected that after a successful issuance, HPG's charter capital will increase to more than VND63,960 billion, equivalent to nearly 6.4 billion outstanding shares. Capital issued from capital surplus and undistributed profits.
Issuance time is expected to be in the second quarter of 2024 and after approval by the State Securities Commission.
Hoa Phat officially reached the milestone of 9 million tons of hot rolled steel coil (HRC) after nearly 4 years since the first HRC coil in May 2020.
Over the past year, many improvement initiatives have been implemented at Hoa Phat Dung Quat Iron and Steel Complex, including the QSP Steel Sheet Rolling Factory (Quality Strip Production). The factory has installed additional rolling racks and roll forming machines to help roll HRC steel to a thickness of 1.5mm. Installing a rolling rack has improved product geometry, increased productivity and efficiency when rolling products compared to before.
Hoa Phat's HRC products are diverse in types such as: low carbon steel grades (SAE1006, SAE1008, S235JR, SPHC, SPHD, BJPC, SPHT1), medium carbon steel grades (SS400, S275, S355, SAE1017, SS36, ASTM A36 ), SPAH mark. Providing products with thickness from 1.2 to 19mm, width from 700 -1650mm according to the needs of domestic and foreign customers.
In 2023, Hoa Phat will also produce a number of new HRC grades such as S235JR, S275JR, S355JR for export to Europe and SPA-H weather-resistant steel for containers.
With a current capacity of 3 million tons/year, Hoa Phat Group is the only Vietnamese enterprise that can produce hot rolled steel coils (HRC). Products meet a series of strict Vietnamese and world standards such as: JIS, MS, BS EN...
In mid-2023, Hoa Phat Dung Quat Steel has registered and been granted CE Marking certification for HRC S235JR, S275JR, S355JR steel products, applied to produce steel structures. CE Marking is an important certification, affirming the quality of the Group's products, and is considered a "passport" when exporting to Europe, creating conditions to promote exports and diversify markets and consumption channels.
Hoa Phat's HRC is a foundation product and input material for many other high-tech manufacturing industries such as automobile manufacturing, shipbuilding, mechanical engineering industry, household appliances, steel structures, galvanized steel, steel pipes, container shells.
Hoa Phat Group is currently promoting the implementation of the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project. The project has a capacity of 5.6 million tons of high quality HRC steel/year. Expected to be completed in the first quarter of 2025, Hoa Phat's crude steel production capacity will reach over 14 million tons per year, including 8.6 million tons of HRC, contributing to helping Vietnam's mechanical engineering industry. Nam is self-sufficient in raw material sources right in the domestic market.
Source: VITIC/Tinnhanhchungkhoan


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