Tuesday, May 21,2024 - 5:47 GMT+7  Việt Nam EngLish 

Nam Kim Steel (NKG) plans to increase profits sharply in 2024 and wants to mobilize VND1,579.7 billion from shareholders 

 Tuesday, April 23,2024

AsemconnectVietnam - Nam Kim Steel Joint Stock Company (code NKG - HOSE) announced the documents of the 2024 Annual General Meeting of Shareholders, held on April 26 in Ho Chi Minh City.

In 2024, Nam Kim Steel plans a total revenue of VND21,000 billion, an increase of 12.8% over the same period, pre-tax profit of VND420 billion, an increase of 137.3% compared to 2023. Accordingly, the total output is expected to be 1 million tons, an increase of 16.1% compared to the implementation in 2023.
It is known that by the end of 2023, Nam Kim Steel recorded revenue of VND18,621 billion, completing 93% of the plan and pre-tax profit recorded VND177 billion, completing 44% of the profit plan of VND400 billion in 2023.
Commenting on the market in 2024, Nam Kim Steel said that the steel industry will continue to recover but the increase will still be very modest, especially in the context that the US Federal Reserve (Fed) still maintains high interest rates. Therefore, the Company evaluates that its business strategy for 2024, in addition to increasing profits, consolidating the market as well as expanding new partners will be key factors in long-term future planning.
For the domestic market, people's purchasing power is still a question mark, while the real estate market needs time to absorb support policies, the Company forecasts that the Company's recovery path in 2024 will still face many challenges.
In addition, Nam Kim Steel said it will continue to research color-coated and alloy products, aiming for product lines that can serve the production of household appliances, machine parts, precision mechanics, and service both for existing factories and the strategy of building Ton Nam Kim Phu My factory in the future.
Regarding the profit distribution plan, Nam Kim Steel submitted to shareholders not to pay dividends in 2023 and entering 2024, Nam Kim Steel did not mention paying dividends, the Company said the remaining profit after provision The funds will supplement capital for production and business activities.
Although not paying dividends in 2023, Nam Kim Steel also presented shareholders with a 20% stock bonus, equivalent to shareholders owning 100 shares will receive 20 new shares. In particular, the Company plans to issue more than 52.6 million additional shares and is expected to deploy in 2024 to 2025.
For employees, Nam Kim Steel presented shareholders with a plan to issue shares under the employee option program (ESOP), the expected volume of issuance is 2.5 million ESOP shares, equivalent to 0.95% % of total outstanding shares at 10,000 VND/share.
In particular, ESOP shares are expected to be issued in 2024 to 2025, and are restricted from transferring 50% after 1 year and the remaining 50% will be transferred at the end of 2 years from the date of issuance.
It is known that, closing the trading session on April 5, NKG shares traded on the market at 24,450 VND/share. Thus, ESOP shares will be issued at a price 59.1% lower than the currently trading market price.
In addition, notably, Nam Kim Steel presented shareholders with a plan to offer shares to existing shareholders at a rate of 50%, corresponding to shareholders owning 2 shares having the right to buy 1 new share for 12,000 VND/share.
It is estimated that Nam Kim Steel will offer a maximum of 131.6 million shares, raising VND1,579.7 billion and is expected to deploy in 2024 to 2025.
In particular, Nam Kim Steel said that all proceeds from the stock offering to existing shareholders will be used to contribute capital to Nam Kim Phu My Steel Co., Ltd. to invest in the Nam Kim Phu My Roofing Steel Factory project.
It is known that on April 7, 2022, the Company approved the policy of establishing a subsidiary, Nam Kim Phu My Steel Sheet Co., Ltd. to invest in the Nam Kim Phu My Steel Roofing Factory project. Up to now, the project has been granted an investment registration certificate on February 6, 2024.
According to design, the Nam Kim Phu My Steel Roofing Factory project has a total investment capital of VND4,500 billion (investor's capital contribution structure is 30% (VND1,350 billion) and 70% is debt (VND3,150 billion) ; The project will have a galvanizing line of 350,000 tons/year, 2 zinc-aluminum alloy plating lines of 300,000 tons/year and 150,000 tons/year, and a color plating line of 150,000 tons/year.
According to calculations by Nam Kim Steel, the project is expected to be implemented and start construction from the second quarter of 2024.
And the last notable submission, Nam Kim Steel submitted to shareholders to dismiss Board member Ms. Nguyen Ngoc Y Nhi according to her personal wishes for the 2020-2025 term, and will also elect 1 additional person.
N.Nga
Source: VITIC/Tinnhanhchungkhoan
 

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