Haxaco is the largest distributor of the Mercedes Benz brand in Vietnam
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Haxaco Joint Stock Company (Haxaco, HOSE: HAX) has recently approved the draft of the Annual General Meeting of Shareholders 2024, scheduled to take place on March 23 at 333 Dien Bien Phu Street, Ward 15, Binh Thanh District, Ho Chi Minh City, according to the list of shareholders finalized on March 20, 2024.
Of note is the proposal to distribute the dividends for 2023 with a total rate of 18%, lower than the 30% rate in 2022. Specifically, 3% will be paid in cash (1 share will receive 300 VND) and 15% will be distributed as bonus shares (100 shares will receive 15 new shares).
With the above-mentioned rights implementation rate and a circulating volume of over 93.4 million shares, Haxaco plans to distribute 28 billion VND as dividends and issue over 14 million bonus shares to shareholders. If successful, the company’s charter capital will increase from 934 billion VND to over 1,074 billion VND.
The implementation time will be after the approval of the General Meeting of Shareholders and the receipt of the full issuance report documents announced by the State Securities Commission, expected to be in the second to third quarter of 2024.
Currently, Haxaco has not announced the reports on the business results of 2023, the business plan for 2024, and the election of the Board of Directors for the 2024-2029 term.
Ending 2023, Haxaco’s revenue reached 3,982 billion VND, a decrease of 41% compared to the previous year and the lowest level since 2018. Pre-tax profit sharply decreased by 84% to 48 billion VND, only achieving 15% of the annual plan. Net profit was about 35 billion VND, the lowest level since 2016.
| Haxaco’s net profit from 2015-2023 |
The company stated that 2023 was a challenging year for the economy, especially the automobile business sector. Despite the decrease in revenue, fixed costs remained the same, leading to a significant decline in profit.
In the current difficult situation, Haxaco is seeking additional growth momentum in the affordable car segment by expanding the distribution of the MG brand. The company has opened 4 MG dealerships in Ho Chi Minh City, Can Tho, and Hanoi in the past 3 years, and recently launched the Premium MG Bac Giang dealership at the end of January, while planning to open more dealerships in other cities.
In the morning session of February 23, HAX shares traded at 14,800 VND per share, an increase of 6% compared to the beginning of the year, with an average trading volume of nearly 316 thousand shares per day.
| HAX share price since the beginning of the year |
