Hai An Transport and Stevedoring (HAH) business is going backwards, only completing 38% of the yearly plan.

Business goes down, still increases profit target for the whole year

Despite the decline in business results in the first half of 2024, Hai An Transport and Stevedoring Joint Stock Company (Code: HAH) still raised its 2024 business plan.

Specifically, the new business plan has been approved by HAH with total revenue increasing from VND3,326 billion to VND3,957 billion, an increase of 19%. The consolidated profit target after tax of the parent company increased from VND290 billion to VND450 billion, equivalent to an increase of 55%.

Despite declining business results, Hai An Transport and Stevedoring (HAH) still sets a business target of increasing by 55% in 2024 (Photo TL)

In terms of output, Hai An Transport and Stevedoring aims to increase ship exploitation, increasing from 565,000 to 597,000 TEU, equivalent to an increase of 5.6%. Port exploitation output also increased from 460,000 to 467,000 TEU, an increase of 1.5%. In contrast, Depot exploitation decreased from 238,000 to 209,000 TEU, a decrease of 12%.

In addition to adjusting the business plan, HAH also approved the investment policy to purchase used container ships with a capacity of 3,500 - 5,000 TEU.

Only 38% of profit plan completed in half a year

Regarding business activities, Hai An Transport and Stevedoring recorded net revenue of VND 1,652.9 billion in the first 6 months of the year, up 30.5% over the same period. Cost of goods sold accounted for VND 1,296.8 billion, leaving gross profit at only VND 356.1 billion, equivalent to a gross profit margin reduction from 26.8% to only 21.5%.

During the period, financial revenue decreased by 31% to only VND8.7 billion. In contrast, financial expenses tended to increase from VND39.8 ​​billion to VND53.5 billion, equivalent to an increase of 34.4%.

Of which, the interest expense also accounted for 41.3 billion VND, showing that the debt structure in HAH's capital source has increased.

After deducting all expenses and taxes, HAH recorded a net profit of VND175.8 billion, down 14.7% year-on-year. The parent company's net profit reached VND171.1 billion. Based on the newly adjusted results, HAH has only completed 41.8% of its revenue target and 38.2% of its profit plan for the year.

Concentrating money on shipyards, financial cost pressure increases

HAH’s declining business results were partly due to increased financial costs during the period. The cause came from bond debt skyrocketing by hundreds of billions of dong in just the first 6 months of the year.

Specifically, HAH's total current capital is recorded at VND5,925.4 billion, an increase of nearly VND600 billion compared to the beginning of the year. Of which, owner's equity accounts for VND3,355.3 billion, the rest is payable debt, mostly long-term debt.

HAH's short-term debt index recorded at the end of the second quarter of 2024 was VND 432.9 billion, an increase of VND 38.7 billion compared to the beginning of the year. Notably, long-term debt increased from VND 992.6 billion to VND 1,284.9 billion, equivalent to an increase of VND 292.3 billion in just the first 6 months of the year.

The long-term debt fluctuation comes from the long-term convertible bonds of up to VND490.5 billion that HAH issued. According to the report on the use of capital from these bonds, VND396.6 billion of which was used to make the final payment to the shipyard. Along with that is the VND62.6 billion payment for the fourth payment to the shipyard under the HC2021-19 contract.

The increase in debt caused interest expenses in the period to increase to VND41.3 billion and financial expenses to VND53.5 billion, 34.4% higher than the same period.

Source: https://www.congluan.vn/van-tai-va-xep-do-hai-an-hah-kinh-doanh-di-lui-moi-hoan-thanh-38-ke-hoach-ca-nam-post313378.html