Quang Ngai Road issues ESOP at half market price

Quang Ngai Sugar Joint Stock Company (stock code: QNS) announced the issuance of more than 10.7 million ESOP shares to employees at a price of VND26,377, half the market price on the UPCoM floor.

According to the recent issuance announcement, the board of directors of Quang Ngai Sugar Joint Stock Company said that the issuance volume is equal to 3% of the total outstanding shares. The issuance price is 26,377 VND, equal to about 54% of the current market price on the stock exchange.

The capital raised from the issuance is expected to be around VND282 billion and will be used to supplement working capital. After this issuance, Quang Ngai Sugar's charter capital will increase from VND3,569 billion to VND3,676 billion.

The issued shares will be restricted from transfer for 3 years. If during the restricted transfer period the employee leaves the company, the company union will buy them back at the issue price.

The board of directors said the purpose of the issuance is to encourage and reward those who have made positive contributions to the development and business efficiency of the company. The issuance also aims to attract and retain talent, creating motivation for employees to contribute to the company.

At the end of June 25, many leaders of Quang Ngai Sugar registered to buy a large amount of these ESOP shares. Specifically, Mr. Tran Ngoc Phuong - Chairman of the Board of Directors and Deputy General Director - announced that he would buy 650,000 shares to increase his ownership ratio here to 1.82%, equivalent to 6.48 million shares. Mr. Dang Phu Quy - Deputy General Director - also bought 650,000 shares, while the company's chief accountant and head of the Board of Supervisors bought 480,000 shares.

On the stock exchange, QNS shares are experiencing their fourth consecutive decline, down to VND48,600. Compared to the price at the beginning of the year, this stock has increased by nearly 15%. Market capitalization is currently at VND17,347 billion.

In an analysis report published in mid-June, a group of experts from MIrae Asset Vietnam Securities Company projected QNS's target price for the next 12 months at VND57,700. The analysis group believes that QNS's growth momentum comes from its leading position in the soy milk segment, limited domestic sugar supply, and attractive dividend policy.

This year, Quang Ngai Sugar aims to record revenue of VND9,000 billion and after-tax profit of VND1,341 billion, down 14.5% and 38.5% respectively compared to last year. However, according to Mirae Asset Vietnam, the company is likely to record revenue of VND10,579 billion, up 5.6% year-on-year, and net profit of VND2,307 billion, up 6% year-on-year. This result comes from the contribution of VND4,276 billion in revenue from the sugar segment and VND4,243 billion from the soy milk segment. Gross profit margin is expected to decrease by 32.8% year-on-year due to the expected decline in sugar prices.

In the first quarter of the year, Quang Ngai Sugar recorded revenue of VND2,522 billion, up 18.4% over the same period last year. Profit after tax reached approximately VND532 billion, up VND216 billion, equivalent to 68% over the same period.

The company's total assets as of the end of the first quarter reached VND13,577 billion, a sharp increase compared to VND12,052 billion at the beginning of the year. The company currently has more than VND4,920 billion in undistributed profit after tax.

Regarding the ESOP issuance plan for 2024, the management said that it will issue 1% of the total outstanding shares if this year's profit after tax and basic depreciation increases by 7.5-12% compared to last year. The issuance rate is 2% of the total volume if profit increases by 15-20% and if it increases above this level, the issuance rate is 3%.

Source: https://baodautu.vn/duong-quang-ngai-phat-hanh-esop-bang-phan-nua-thi-gia-d218597.html