Closing the 2023-2024 fiscal year, Hoa Sen earned a profit of more than VND 510 billion, 16 times higher than the previous year and exceeded the profit target with 2 scenarios of VND 400 billion and VND 500 billion, respectively.
Closing the 2023-2024 fiscal year, Hoa Sen earned a profit of more than VND 510 billion, 16 times higher than the previous year and exceeded the profit target with 2 scenarios of VND 400 billion and VND 500 billion, respectively.
Hoa Sen Group Joint Stock Company (stock code HSG) announced its consolidated financial report for the fourth quarter of the 2023-2024 fiscal year with net revenue of more than VND 10,109 billion, up 25% over the same period. Sales of goods contributed VND 5,415 billion to the company's revenue, while sales of finished products brought in VND 4,805 billion.
Cost of goods sold increased by 32% to VND9,260 billion, causing gross profit to decrease by 21% compared to the same period last year, reaching VND849 billion. Gross profit margin accordingly decreased from 13% to 8%.
Hoa Sen's expenses in the last quarter of the fiscal year all increased sharply compared to the same period last year. Specifically, financial expenses increased by 60% to VND98 billion, sales expenses increased by 65% to VND909 billion, and business management expenses doubled to VND149 billion.
As a result, the company reported a pre-tax loss of VND176 billion and a post-tax loss of VND186 billion, while in the same period it made a profit of VND504 billion and VND438 billion, respectively. This is the company's first quarterly loss in nearly two years.
On the positive side, Hoa Sen recorded net revenue of approximately VND39,272 billion for the whole fiscal year, up 24% over the previous year. Gross profit was over VND4,253 billion, up 39% over the previous year. Gross profit margin reached 11%, up 1 percentage point over the same period.
After deducting all expenses, Hoa Sen achieved pre-tax profit of VND541 billion and after-tax profit of VND510 billion, respectively 3.7 times and 16 times higher than the same period.
In the 2023-2024 fiscal year, Hoa Sen plans to do business with two scenarios. Specifically, scenario 1 targets a sales output of 1,625 thousand tons, up 13.3% over the same period. Revenue is expected to be 34,000 billion VND, up 7.4% over the same period, and after-tax profit is expected to be 400 billion VND, up more than 12 times over the previous fiscal year.
Scenario 2 targets an estimated total consumption output of 1,730 thousand tons, up 20.7% over the same period. Revenue is expected to reach VND36,000 billion, up nearly 14%, and after-tax profit is expected to reach VND500 billion, up more than 15 times over the previous fiscal year.
Thus, at the end of the fiscal year, Hoa Sen exceeded the revenue plan by 17% under scenario 1 and exceeded it by 11% under scenario 2. Profit accordingly exceeded the fiscal year target by 28% and 2% respectively.
At the end of the 2023-2024 fiscal year, Hoa Sen's total assets recorded more than VND 19,561 billion, an increase of nearly VND 2,200 billion compared to the beginning of the period. Inventories accounted for more than VND 9,702 billion in the company's asset structure. Liabilities increased by VND 2,064 billion compared to the beginning of the fiscal year to VND 8,649 billion, most of which were short-term items. Owner's equity and accumulated interest did not differ much compared to the beginning of the period, reaching VND 10,912 billion and VND 4,528 billion, respectively.
According to an analysis report by Vietcombank Securities Company (VCBS) published on October 27, 2024, steel prices are likely to have bottomed out and begin to enter an upward cycle in the next few years thanks to policies to stimulate the real estate market strongly again. The protectionist trend of European and American countries is taking place, but it is only focused on HRC semi-finished products, not galvanized steel products.
VCBS believes that Hoa Sen has not been directly affected by the defense measures in major export markets and the company will gradually increase the proportion of domestic revenue to take advantage of the benefits from the new defense measures.
VCBS experts recommend investors buy HSG shares with a target price of VND23,500/share, corresponding to a profit of 16% compared to the current price.
On the HoSE, HSG shares experienced 4 consecutive sessions of decline, bringing the market price from 20,750 VND to 20,200 VND. The matched volume in the first session of November reached more than 8.9 million units, equivalent to a value of 179 billion VND.
Source: https://baodautu.vn/hoa-sen-lai-ca-nien-do-510-ty-dong-d228988.html
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