(HSV VIETNAM GROUP) – Hoa Phat aims to bring in revenue of 140,000 billion VND and after-tax profit of 10,000 billion VND next year, an increase of 18% and 47% respectively compared to 2023.
Hoa Phat Group (stock code: HPG) has just announced a number of contents at the 2024 Annual General Meeting of Shareholders. Accordingly, the "king" of steel sets a target for next year to bring in revenue of 140,000 billion VND, profit after tax of 10,000 billion VND, an increase of 18% and 47% respectively compared to 2023. If achieved, this will be the 3rd highest revenue level in the calendar. history and highest profit from 2022.
Regarding profit distribution, with about 6,800 billion in profit after tax, Hoa Phat plans to allocate 340 billion VND to the Bonus and Welfare Fund and 68 billion VND to remunerate the Board of Directors and Supervisory Board. The remaining profit after fund deduction is up to 6,392 billion VND. Thus, Hoa Phat may have the second consecutive year of not paying cash dividends. Instead, the company's Board of Directors proposed a plan to reward shareholders with shares at a rate of 10%. Specifically, Hoa Phat will issue more than 581 million shares, aiming to increase its charter capital to VND 63,962 billion. The capital source is taken from capital surplus of VND 3,212 billion and a portion of undistributed after-tax profits with a value of VND 2,603 billion. Implementation time is in the second quarter of 2024 after approval by the State Securities Commission.
Regarding the profit distribution plan for 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 Board of Directors. Notably, billionaire Tran Dinh Long's company wants shareholders to approve its 2024 dividend payment plan at an expected rate of 10%.
Regarding the business situation in 2023, Hoa Phat will reach VND 120,355 billion in revenue, down 16% over the same period last year. Profit after tax is 6,800 billion VND, equivalent to completing 85% of the year's plan.
Accumulated in the first 2 months of 2023, 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 billet reached 1.15 million tons, an increase of 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.
Ha Diem HSV