Pig farming is not profitable, what will Mr. Duc's business use to compensate?

According to Mr. Doan Nguyen Duc - Chairman of the Board of Directors of Hoang Anh Gia Lai Joint Stock Company (HAGL - code: HAG), the pig farming industry will face difficulties this year. In fact, in the first quarter of 2023, HAGL had no profit from pig farming because pig prices fell too deeply.

Bau Duc revealed: "In the first quarter of 2023, if there is no profit from banana growing, HAGL will have almost no profit."

Mr. Duc said that the advantage of growing bananas is huge, it is possible to harvest 100% of all parts of the banana tree. Currently, HAGL grows bananas for two purposes, which are for export and for feeding pigs. In 2023, the price of bananas increased by nearly 20% compared to 2022, currently, there are not enough bananas to sell.

*Profits from bananas have offset the loss of pig farming for HAGL. (Photo: HAGL)*

According to HAGL's explanatory document to the State Securities Commission, revenue from fruit in the first quarter of 2023 reached VND 710 billion, an increase of VND 318 billion over the same period last year; cost of fruit sales was VND 360 billion. The difference between revenue and cost of fruit sales in the first quarter of 2023 of HAGL is VND 350 billion.

While HAGL's revenue from selling pigs in the first quarter of 2023 reached VND563 billion, an increase of VND369 billion over the same period last year, the cost of selling pigs was VND561 billion. The difference between revenue and cost of selling pigs is VND2 billion.

Mr. Duc commented that the selling price of bananas and the cost price change depending on the month, quarter and season, but the average price of bananas for the whole year (including bananas for export and bananas for pig feed) is about 7,800 VND/kg, the average cost price is about 5,500 VND/kg.

Although selling pigs in the first quarter did not bring in any profit, HAGL still plans to make a profit from now until the end of the year, because since April this year, pork prices have shown signs of increasing.

At the end of the first quarter of 2023, HAGL's net revenue and service provision reached VND 1,696 billion, more than double that of the same period last year; profit after tax reached VND 303 billion, up nearly 18% over the same period in 2022.

Business News

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

* NVL: In the latest announcement, Novagroup Joint Stock Company, the largest shareholder of Novaland Real Estate Investment Group Joint Stock Company, has just registered to sell more than 69.6 million NVL shares, reducing its ownership ratio from 555.1 million shares (28.47%) to 485.5 million shares (24.9%), with the aim of balancing the investment portfolio and supporting the restructuring of debts and other obligations. The expected transaction time is from May 10 to June 8, 2023.

* GVR: The consolidated financial report for the first quarter of 2023 of Vietnam Rubber Industry Group shows that GVR's net revenue decreased by 16% to VND 4,135 billion; GVR's profit after tax reached VND 756 billion, down 43% over the same period.

* MWG: According to the explanatory document of Mobile World Investment Corporation, consolidated profit after tax in the first quarter of 2023 reached VND 21 billion, down 99% compared to the same period in 2021, which was VND 1,445 billion.

According to MWG, the reason is due to consumers' cautious psychology, delay in spending decisions on high-value products, even for high-end customers due to declining consumer confidence.

* VCS: According to the announcement of the first quarter 2023 financial statements of VICOSTONE Joint Stock Company, the group's net revenue decreased by 36% compared to the same period to VND 1,034 billion; Vicostone's pre-tax profit reached VND 225 billion, down 49%; Vicostone's after-tax profit reached VND 190 billion, down 49% compared to the same period in 2022.

* LUT: Luong Tai Construction Investment Joint Stock Company was fined VND 100 million for failing to publish many documents as prescribed: corporate governance report for 2020 and 2021; annual report for 2020; audited financial report for 2022.

* VGV: According to the first quarter 2023 financial statements of Vietnam Construction Consultant Corporation, VGV's revenue decreased by 45%, to nearly 82 billion VND compared to the same period; net profit reached more than 2 billion VND, marking the lowest profitable quarter since the fourth quarter of 2017.

* LIC: The financial report for the first quarter of 2023 recorded that LICOGI Corporation's revenue reached 388 billion VND, down 7% over the same period; profit loss was 23 billion VND, while in the same period last year, the profit was nearly 17 billion VND.

* BSR: According to the financial report for the first quarter of 2023, Binh Son Refining and Petrochemical Joint Stock Company recorded a 2% decrease in revenue, to more than 34,000 billion VND; BSR's net profit decreased by 30% compared to the first quarter of 2022, reaching nearly 1,630 billion VND, reaching 99.5% of the profit plan for the whole year of 2023.

* HVN: On May 5, 2023, the Ho Chi Minh City Stock Exchange (HOSE) decided to transfer more than 2.2 billion HVN shares issued by Vietnam Airlines Corporation (Vietnam Airlines) from warning status to control status from May 12, 2023. The reason is that Vietnam Airlines is 30 days late in submitting its audited financial statements for 2022 compared to the prescribed deadline.

Cautious investors

From a technical perspective, Vietcombank Securities Company (VCBS) believes that after two short recovery sessions, the VN-Index is approaching the 1,050 point area, intersecting with the MA50 moving average and facing selling pressure again.

According to VCBS, short-term investors remain cautious, proactively selling stocks that have fallen below the support zone and only maintaining the stock proportion at a safe level of 20-30%.

Meanwhile, Dragon Viet Securities Company (VDSC) believes that investors need to be cautious, keep the portfolio proportion at a reasonable level and avoid overbuying. At the same time, they can take advantage of the increase in the session to take profits or restructure the portfolio to minimize risks.

According to Agribank Securities Company (AGR), short-term investors with a high cash ratio can trade stocks that attract good cash flow, including industrial parks and construction. On the contrary, investors with a high stock ratio should reduce the ratio of stocks that have lost their support base or have a profit rate of over 10%.

With a profit of thousands of billions, Hoang Anh Gia Lai launches a plan to please creditors . In 2022, for the first time in many years, Hoang Anh Gia Lai's profit reached over 1,000 billion VND, 10 times higher than in 2021. The enterprise confidently plans to pay off large debts.

Source