Sonadezi Chau Duc wants to borrow a limit of 3,000 billion VND at VietinBank

Offering nearly 60 million shares, Sonadezi Chau Duc JSC (code SZC - HoSE) continues its plan to increase bank loans to invest in the Chau Duc Industrial Park project.

Sonadezi Chau Duc Company approved the loan and collateral plan at Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7 in Ho Chi Minh City.

Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7 in Ho Chi Minh City will provide a total long-term loan limit of VND3,000 billion to Sonadezi Chau Duc Company and a new short-term loan limit of VND100 billion to supplement working capital. Of which, the new long-term loan limit is VND2,000 billion to continue implementing the investment project of Chau Duc Industrial Park.

In addition, the loan will be mortgaged/pledged with assets to Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7.

It is known that as of December 31, 2023, Sonadezi Chau Duc Company has a total short-term and long-term debt of up to VND 2,667.8 billion, equal to 154% of equity. Of which, short-term debt is VND 624.2 billion and long-term debt is VND 2,043.6 billion.

In terms of long-term debt structure, mainly 1,328.3 billion VND from Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7; 284.6 billion VND from Vietnam Joint Stock Commercial Bank for Investment and Development - Dong Nai Branch; 115 billion VND from Woori Bank Vietnam...

Most of the money raised is used to pay off debt.

A noteworthy point is that on January 8, 2024, Sonadezi Chau Duc Company closed the list of shareholders exercising the right to buy additional shares offered for sale, at a ratio of 2:1, shareholders owning 2 shares are entitled to buy 1 new share at a price of VND 20,000/share.

In addition, from January 16, 2024 to February 20, 2024, investors will register to purchase and pay for additional shares offered for sale. However, Sonadezi Chau Duc Company suddenly extended the payment period from January 16 to March 15, 2024.

It is estimated that the Company will offer nearly 60 million shares to raise nearly VND1,200 billion. Of the amount raised, the Company plans to use VND800 billion to restructure the Company's loans to credit institutions and pay principal and interest on due bonds; and the remaining nearly VND400 billion will be used to supplement investment capital and build the Chau Duc Industrial Park project in Chau Duc district, Ba Ria - Vung Tau province.

It is known that in the Prospectus for the offering of shares, Sonadezi Chau Duc Company has 2 major shareholders including Industrial Park Development Corporation owning 46.84% of charter capital; Sonadezi Long Thanh Joint Stock Company owning 10.08% of charter capital; and the remaining 43.08% of charter capital belongs to small shareholders owning less than 5% of charter capital.

Another notable development is that Sonadezi Chau Duc Company has just approved increasing the investment capital of the Chau Duc Urban Area project from VND 1,237.43 billion to VND 9,804.4 billion, an increase of 6.92 times compared to the original plan, equivalent to an increase of VND 8,566.97 billion.

The reason for the project capital increase, the Company said that with the actual implementation situation, the Chau Duc Urban Area project has changed in scale, total investment capital, and implementation progress, so the Company must adjust the investment policy of the Chau Duc Urban Area project.

Sonadezi Chau Duc exceeds 4% of 2023 profit plan

In terms of business activities, in the fourth quarter of 2023, Sonadezi Chau Duc Company recorded revenue of VND 258.52 billion, an increase of 32.1% over the same period and profit after tax of more than VND 56 billion, an increase of 49.2% over the same period last year.

In the revenue structure, land rental and management fees in the fourth quarter of 2023 skyrocketed, nearly doubling compared to the same period last year, reaching more than VND 223 billion, accounting for more than 86% of total revenue; while revenue from selling townhouses on the commercial street of Sonadezi Huu Phuoc Residential Area decreased by nearly 74% to VND 17.52 billion.

Accumulated for the whole year of 2023, Sonadezi Chau Duc Company recorded revenue of VND 817.96 billion, down 4.77% compared to 2022; however, profit after tax still increased by 10.89%, reaching VND 218.87 billion. Thus, with the plan of revenue of VND 914.51 billion, profit after tax of VND 210.26 billion, in 2023, Sonadezi Chau Duc Company completed 89.44% of the revenue target but exceeded the profit target by more than 4%.

By the end of 2023, Sonadezi Chau Duc Company's total assets were over VND 6,961 billion, up 9.88% compared to the beginning of the year. Of which, inventories increased by 20.7% to over VND 1,621 billion, mainly from unfinished production and business costs including Huu Phuoc Residential Area Project (VND 147.83 billion), Chau Duc Urban Area Project (over VND 1,473 billion).

The cost of unfinished basic construction still accounts for the largest proportion with more than 42.3% of total assets, recorded at VND 2,943 billion, up 9% compared to the beginning of the year, mainly coming from more than VND 2,403.4 billion from the Industrial Park project - compensation and site clearance costs and nearly VND 467 billion from the Industrial Park project - investment preparation, consulting and construction costs.

Meanwhile, liabilities accounted for more than 75% of total capital, reaching nearly VND5,224 billion, up 8.81% over the beginning of the year.

Currently, Sonadezi Chau Duc Company has a charter capital of nearly 1,200 billion VND, of which the Industrial Park Development Corporation holds 46.83% of capital, Sonadezi Long Thanh Joint Stock Company holds more than 10%, and the remaining 43.17% are other shareholders.

(function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/vi_VN/sdk.js#xfbml=1&version=v2.0"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Source