(HSV VIETNAM GROUP) – Thai Nguyen Iron and Steel marked the second consecutive quarter of profitability with profit after tax of nearly 6 billion VND. With a pre-tax profit of VND 7 billion in the first 3 months of the year, the company has achieved 50% of the pre-tax profit plan for 2024.
Thai Nguyen Iron and Steel Joint Stock Company (Tisco, TIS code, UPCoM exchange) has just announced its financial report for the first quarter of 2024 with net revenue of 2,182.6 billion VND, down 11% over the same period. After deducting the cost price, gross profit is at 105 billion VND, an increase of 89% compared to the first quarter of 2023.
During the period, financial revenue increased, while costs decreased and selling expenses also decreased slightly. Enterprise management costs alone are 2.5 times higher than the same period, at 55 billion VND, because there is no provision reversal like the first quarter of 2023.
As a result, Tisco reported a net profit of nearly 6 billion VND, while in the same period a loss of more than 19 billion VND. This is the second consecutive quarter the company has returned to profit, after a series of 5 consecutive quarters of losses.
In 2024, Tisco targets total revenue of nearly 13,000 billion VND and pre-tax profit of 15 billion VND. With a pre-tax profit of VND 7 billion in the first 3 months of the year, Tisco has achieved 50% of the pre-tax profit plan for 2024.
In the consolidated financial report for the first quarter of 2024, Tisco still recorded unfinished construction costs for the Thai Nguyen 2 Iron and Steel project at VND 6,700 billion, of which nearly VND 3,500 billion is capitalized interest. This is a project that once had a lot of expectations but has been "laying in the dust" for the past 15 years.
Returning to the 2024 business plan, Tisco said it will spend VND 653 billion on transitional projects and a number of new projects in the field of mineral exploitation to meet raw materials for the company's production.
In addition, Thai Nguyen Iron and Steel said that the company still has 2,708.1 billion VND in overdue debt from the project that has not yet been paid. Meanwhile, the accumulated undistributed profit after tax until the end of 2023 in the consolidated financial statements is only nearly 95 billion VND. Therefore, the company is not eligible to pay dividends.
Regarding personnel, the upcoming 2024 Annual General Meeting of Shareholders will consider dismissing 7 members of the Board of Directors and 5 members of the Supervisory Board for the 2019-2024 term. The list of replacement candidates has not been announced.
Ha Diem HSV