Lam Son Sugarcane Vice President wants to become a major shareholder

The Vice Chairman of the Board of Directors of Lam Son Sugar Joint Stock Company announced the purchase of 3 million LSS shares to increase ownership to 6.11%, thereby becoming a major shareholder of the company.

In a notice sent to the Ho Chi Minh City Stock Exchange, Mr. Le Trung Thanh, Vice Chairman of the Board of Directors of Lam Son Sugar Joint Stock Company (stock code LSS) plans to carry out this transaction by order matching or negotiation from October 2 to October 31. If successful, Mr. Thanh will increase his ownership ratio at LSS from 2.36% (more than 1.89 million shares) to 6.11% (more than 4.89 million shares).

Based on the current price of 12,850 VND, to become a major shareholder of the company, it is estimated that Mr. Thanh needs to spend 38.55 billion VND.

The purchase by the Vice Chairman of the Board of Directors took place ahead of the 2024-2025 Annual General Meeting of Shareholders. According to the meeting documents, the Board of Directors proposed a dividend rate of 12% for the 2023-2024 fiscal year, including 5% in cash and 7% in shares. In the previous year, the company paid a dividend rate of 7.5% in shares (shareholders owning 100 shares received 7.5 new shares).

On the stock exchange, LSS shares have increased by 33% compared to the lowest price of the year set at the end of April 2024 (VND 9,660).

Previously, in April 2024, Mr. Thanh's daughter, Ms. Le Thi Phuong Thao, left her position as a major shareholder when she transferred nearly 3 million LSS shares by negotiation to Thang Long Hanoi Investment and Trading Joint Stock Company - where Mr. Thanh holds the position of Chairman of the Board of Directors. After completing the transaction, Thang Long Investment increased its ownership ratio at LSS from 6.48% (4.8 million shares) to 10.48% of capital (7.8 million shares).

If Mr. Thanh's transaction is completed, the Thang Long Investment shareholder group will hold a total of 16.59% (12.7 million shares) at Lam Son Sugarcane .

In terms of business activities, in the fourth quarter of the 2023-2024 fiscal year (from July 1, 2023 to June 30, 2024), Lam Son Sugar recorded a record high net revenue of VND 894 billion, an increase of 24% over the same period. Gross profit during this period was more than VND 114 billion, 2.3 times higher than VND 49.7 billion in the same period last year. Gross profit margin reached 12.8%, a significant increase compared to 6.9% achieved in the same period. After deducting expenses, the company's pre-tax profit was more than VND 37.7 billion and after-tax profit was VND 31.2 billion, respectively 4.8 times and 6 times higher than the same period.

For the whole fiscal year, Lam Son Sugar recorded net revenue of VND2,692 billion, up 49% over the same period. Gross profit was approximately VND349 billion, up 93.4% over the previous fiscal year. Profit margin was nearly 13%. The company reported pre-tax profit of VND144 billion and after-tax profit of VND123 billion, respectively 3.6 times and 4 times higher than last year.

At the end of the 2023 - 2024 fiscal year, Lam Son Sugarcane exceeded 22% of the revenue plan to reach VND 2,202 billion (up 22% over the previous fiscal year) and 35.8% of the pre-tax profit target of VND 106 billion (2.7 times higher than the 2022 - 2023 fiscal year).

The company believes that the 2024-2025 fiscal year will take place in a context of complex fluctuations in the general market and the sugar industry market, posing potential risks to growth targets. The company plans to achieve revenue of VND2,700 billion and pre-tax profit of VND145 billion for the new fiscal year.

At the end of the 2023-2024 fiscal year, Lam Son Sugar 's total assets increased by VND 432 billion compared to the beginning of the period, reaching VND 2,974 billion. Liabilities were over VND 1,203 billion, most of which were short-term debts. Owner's equity increased slightly compared to the beginning of the year, reaching VND 1,770 billion. Undistributed profit after tax was over VND 126 billion.

Source: https://baodautu.vn/pho-chu-tich-mia-duong-lam-son-muon-thanh-co-dong-lon-d225897.html