The company chaired by billionaire Tran Ba Duong continues to suffer losses.

Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico (code: HNG), chaired by billionaire Tran Ba Duong, has just announced its consolidated business results for the third quarter of 2023 with revenue of VND 160 billion, down 16% over the same period last year. The cost of goods sold was higher than revenue, so the company suffered a gross loss of VND 100 billion, an improvement from the loss of VND 182 billion in the third quarter of 2022.

During the period, HAGL Agrico's fruit tree segment only achieved 84 billion VND in revenue, with an output of 6,556 tons, down 62% over the same period and much lower than the plan of 19,523 tons.

The reason is the lack of labor and prolonged rainy weather causing flooding, increasing disease, leading to poor productivity, the number of bunches that had to be canceled and not harvested in the garden was 43%.

hagl ar.png — *HAGL Agrico continues to lose money in the third quarter of 2023.*

Regarding rubber trees, during the period, HAGL Agrico achieved revenue of 55 billion VND, output of 1,973 tons, down 13% compared to the third quarter of 2022 and lower than the plan of 3,272 tons. The reason is due to a shortage of about 37% of the number of rubber tapping workers, leading to concentrated exploitation reaching only 39% of the total garden area.

In addition, the cost of capital of large orchards is mainly depreciation cost (accounting for 60%), leading to revenue not being enough to cover costs.

After deducting expenses and taxes, HAGL Agrico reported a consolidated loss after tax of VND199 billion, while in the same period last year it lost more than VND415 billion. Not only that, this result of HAGL Agrico is still a higher loss than the losses of VND112 billion and VND135 billion in the previous two quarters. This is also the 10th consecutive quarter of loss for HAGL Agrico.

After the first 9 months of the year, Chairman Tran Ba Duong's company achieved total revenue of 438 billion VND, after-tax profit of negative 446 billion VND, down 21% and 59% respectively compared to the same period last year. Accumulated loss increased to 7,450 billion VND.

At the end of the trading session on October 27, HNG shares reached 3,610 VND/share.

Business News

The stock market has a number of other important events of listed companies.

* VSC: According to the third quarter 2023 financial statements, Vietnam Container Corporation's net revenue reached VND 557.2 billion, up 10% year-on-year. However, the sudden increase in interest expenses has pulled VSC's net profit down to VND 32.5 billion, down 60% year-on-year. In the first 9 months of this year, VSC recorded net revenue of VND 1,555.1 billion, up 4%; net profit of VND 81.4 billion, down 69%.

* SMC: In the third quarter of 2023, SMC Investment and Trading JSC recorded net revenue of more than VND 3,140 billion, down 45% over the same period. The company continued to have a net loss of VND 164 billion, while in the same period it lost VND 188 billion.

* SRT: Saigon Railway Transport Joint Stock Company recorded a profit after tax of about VND43 billion in the third quarter of 2023, the highest quarterly profit ever for this enterprise. However, the company still had an accumulated loss of nearly VND312 billion, a result of 9 consecutive quarters of losses during the pandemic.

* VBB: Consolidated financial statements show that Vietnam Thuong Tin Commercial Joint Stock Bank's pre-tax profit in the first 9 months of 2023 was nearly 419 billion VND, down 22% over the same period last year due to a decrease in all sources of revenue.

* PVS: Vietnam Oil and Gas Technical Services Corporation has just announced its financial report for the third quarter of 2023 with net profit down 27% year-on-year, down to VND 141 billion; net profit for the first 9 months of the year reached VND 580 billion, up 40% year-on-year.

* DGW: In the third quarter of 2023, Digital World Corporation recorded unfavorable business results due to the impact of the mobile phone segment. Thereby, DGW's net profit was 102 billion VND, down 43% over the same period; net profit in the first 9 months of the year reached 265 billion VND, down 50% over the same period last year.

* EIB: Eximbank announced its consolidated financial statements for the third quarter of 2023 with pre-tax profit of nearly VND 307 billion, down 76% year-on-year, due to a decrease in main revenue sources and a shift from refunds to credit risk provisions. Pre-tax profit for the first 9 months reached more than VND 1,712 billion, down 46% year-on-year.

* HNI: On October 25, Huu Nghi Garment Joint Stock Company announced that it received a decision on administrative tax penalties from the Ho Chi Minh City Tax Department with a fine of VND 67 million due to incorrect declaration leading to increased value added tax.

VN-Index

At the end of the trading session on October 27, VN-Index increased by 5.17 points (+0.49%) to 1,060.62 points, HNX-Index increased by 3.06 points (+1.42%) to 218.04 points, UpCOM-Index increased by 0.31 points (+0.37%) to 83.1 points.

According to KIS Vietnam Securities, current technical signals show that the short-term correction trend of VN-Index is quite clear when the index "dipped" below the short-term and medium-term moving averages (MA20, MA50 and MA100) and closed below the 1,100 point threshold.

Although the market has shown some reversal signals such as a sudden increase in volume in the session of October 26, and investor sentiment is becoming stable again, these two signals do not confirm that the market can reverse immediately, but needs to gradually accumulate before returning to an uptrend in the short term.

Vietinbank Securities (CTS) said that in the scenario of the market "breaking" 1,000, there are many risks that investors can consider. That is, the Fed may raise interest rates again at the meeting next week, and continue to signal that there will be a few more interest rate hikes in the near future.

Geopolitical risks continue to escalate, with conflicts in the Middle East and Russia-Ukraine on a large scale threatening economic growth and disrupting supply chains.

Low credit growth, continued lack of orders in businesses, and failure to meet public investment targets also need to be considered.

People buy fewer cars, billionaire Tran Ba Duong's Thaco profit 'evaporates' thousands of billions. Billionaire Tran Ba Duong's Thaco Group reported after-tax profit in the first 6 months of 2023 of only nearly 1,100 billion, down nearly 4,000 billion compared to the same period due to the continuing difficulties of the auto market.

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