The potential of Danh Khoi - the group 'cherishing' to spend hundreds of billions to buy the project of the giant Dung Lo Voi

Danh Khoi plans to spend 195 billion VND to buy back part of Dai Nam residential area project - Photo: A LOC

Issuing additional shares at double the price, Danh Khoi is confident because there is a partner who bought up to 40%?

On June 26, Danh Khoi Group Corporation (NRC) announced the resolution and minutes of the 2024 annual general meeting of shareholders.

According to the resolution, this congress approved the plan to issue private shares to increase charter capital in 2024.

Accordingly, NRC will offer 100 million shares with a par value of VND10,000 to professional securities investors, raising VND1,000 billion.

The purpose of issuing the above shares is to supplement working capital, pay off debts, buy back part of the Dai Nam residential area project and part of the project in the Ham Thang - Ham Liem commercial and service small-scale residential area.

Before approval, shareholders questioned the feasibility of this private offering, as the expected issuance price was twice as high as the market price of the shares.

At the end of the session on June 26, NRC's market price was at VND 4,700/share.

Not to mention, the stock price of this real estate company is also in a downward trend, losing nearly 12% after 1 month and nearly 18% after 1 year.

Responding to shareholders, Mr. Le Thong Nhat - Chairman of Danh Khoi, said that this private issuance was planned 12 months in advance and was carefully prepared.

The leader of this real estate company affirmed that he is "very confident" about the issuance and so far the preliminary results of discussions with some partners are about 40% of the issuance plan.

Mr. Ho Duc Toan - NRC's financial director, added: When implementing the private issuance plan, there will be a dilution story. Therefore, the board of directors discussed with the group of major shareholders at the company and agreed on the dilution ratio to welcome new investors.

"Although the current market price is around VND4,700, the book value per share by the end of 2023 is VND14,000/share. Not to mention, according to the financial report by the end of the first quarter of 2024, the company's undistributed profit is VND181 billion," said Mr. Toan.

Will spend 195 billion VND to buy back part of Mr. Dung's project "Lime Kiln"

The minutes published by NRC also reported the content of Mr. Le Thong Nhat's discussion about the reason for purchasing part of the Dai Nam residential area project and the Ham Thang - Ham Lien handicraft residential area.

"Up to this point, the company has not been able to officially confirm with shareholders. This is only a prediction, not certain. The management board is also looking for suitable projects. If there are better projects, the company will inform when negotiations are completed," Mr. Nhat replied.

According to research, Dai Nam residential area project is located on the frontage of National Highway 13 in Chon Thanh, Binh Phuoc, about 100 hectares wide, and has invested in infrastructure.

The investor of Dai Nam residential area is Tan Khai LLC (a member of Dai Nam Joint Stock Company, chaired by Mr. Huynh Uy Dung - also known as Mr. Dung "lime kiln").

The Ham Thang - Ham Liem small-scale industrial residential area project (phase 1) was approved by the Binh Thuan Provincial People's Committee as the winning investor, Tuan Tu Real Estate Production, Trade and Service Company Limited. The project area is about 17.75 hectares.

According to information on the website of Binh Thuan Provincial People's Committee, by the end of 2023, the investor had completed the project's infrastructure, fulfilled all financial responsibilities, and set aside 20% of the land fund to build social housing.

Danh Khoi plans to spend 195 billion VND to buy back part of the Dai Nam residential area project and 180 billion VND to buy part of the Ham Thang - Ham Liem handicraft residential area project.

What is Danh Khoi's potential?

Danh Khoi Group's 2024 General Meeting of Shareholders agreed on a consolidated revenue plan of VND 380 billion, an increase of 432.09% compared to 2023, and consolidated profit after tax of VND 40 billion, an increase of more than 336%.

With a high growth target, but according to the financial report for the first quarter of 2024, Danh Khoi has only recorded net revenue of nearly 5.4 billion VND and after-tax profit of 2.67 billion VND.

At the end of March 2024, the company's cash and cash equivalents were only VND 554 million, with total assets of more than VND 2,000 billion.

Regarding debt, on the balance sheet, Danh Khoi recorded nearly 390 billion VND in short-term and long-term financial loans and tax debts.

Previously, Danh Khoi's 2023 results were quite modest with revenue reaching more than 4.6 billion VND, but thanks to other income, after-tax profit was 11.9 billion VND.

Looking back at business data over the past few years, it can be seen that 2023 is the year with the lowest revenue in the past 7 years.

At its peak, Danh Khoi recorded revenue of more than 532 billion VND (in 2019). From 2020 to 2022, the revenue of this real estate company also fluctuated by several hundred billion VND.

In 2024, NRC is expected to record revenue from the Astral City project. Danh Khoi's leaders expect that after taking financial initiative, they will seize business opportunities with new products such as land, urban projects...

Source: https://tuoitre.vn/tiem-luc-cua-danh-khoi-tap-doan-ap-u-bo-tram-ti-mua-du-an-dai-gia-dung-lo-voi-20240627094256393.htm