"Shrimp King" wants to expand into social housing

Minh Phu Seafood Corporation (stock code: MPC) has just announced the Board of Directors' resolution approving the investment project to build social housing in Khanh An commune, U Minh district, Ca Mau province.

The investment objective is to exploit land funds to invest in the complete construction of social housing projects according to approved planning; create additional social housing funds for sale, lease, and lease-purchase for beneficiaries of social housing support policies in Ca Mau province according to the provisions of law.

Vua tôm muốn lấn sân làm nhà ở xã hội - 1 — Resolution approving the policy of the social housing construction investment project of Minh Phu Seafood Corporation (Screenshot).

The company said the planned land, water and site area is 17.67 hectares, of which 9.47 hectares is residential land, with a population of 3,200 to 3,800 people. The total investment capital of the project is 632.8 billion VND, including 619.3 billion VND for project implementation costs, and 13.5 billion VND for compensation and site clearance costs.

The project has a duration of 49 years from the date of issuance of the Decision on Investor Approval or signing of the investment project implementation contract or issuance of the first investment registration certificate. The maximum implementation progress is 60 months from the date the investor is issued the Decision on Investor Approval or signing of the project implementation contract.

Minh Phu Seafood is expected to hold an extraordinary shareholders' meeting in 2023 in December. At the meeting, the Board of Directors will submit for approval the addition of real estate business lines, land use rights owned by owners, users or lessees.

This move by the company is surprising as the business situation is not very positive. The consolidated financial report for the third quarter of 2023 shows that Minh Phu recorded net revenue of VND 2,993.3 billion, down nearly 42% compared to the same period last year. The company lost VND 26 billion after corporate income tax while in the third quarter of 2022, it made a profit of nearly VND 329 billion.

In the first 9 months, the company achieved VND7,465.8 billion in net revenue, down 46% compared to last year. The loss after tax since the beginning of the year was VND114.2 billion while in the first 9 months of last year, the profit was VND571.4 billion.

The reason for the change from profit to loss, according to the company, was due to a decrease in sales revenue during the period. In addition, the production and business results of commercial shrimp farming companies including Minh Phu Loc An Aquaculture Company Limited, Minh Phu Kien Giang Seafood Company Limited and Minh Phu Ninh Thuan Aquatic Seed Production Company Limited were not effective.

Source