TNG Textiles Seeks to Expand Export Orders, Increase Capacity, and Hire 3,000 Workers

TNG Investment and Trading Joint Stock Company (HNX: TNG) has secured export garment orders until the end of the first half of 2024. Starting from March, TNG plans to increase factory capacity with an additional 45 sewing lines and hire an additional 3,000 workers, according to a statement by the management team of TNG, as quoted by BSC Securities Company (BSC).

0
79

The order volume of TNG has been filled at the factories for the first half of 2024, thanks to major partners in the US such as Columbia, The Children’s Place, Sportmaster, Costco… who have sold out their inventory. Moreover, Decathlon is increasing orders to serve the Summer Olympics in June 2024 in France.

TNG’s leadership welcomes Mr. Benoit Fournier – CEO of Decathlon Vietnam for a visit and work at TNG in early November 2023. Photo: TNG

Therefore, in 2024, TNG plans to increase total capacity by an additional 15% by deploying an additional 45 sewing lines and hiring an additional 3,000 workers, starting in March 2024.

In addition, TNG will relocate the Viet Duc and Viet Thai garment factories to the Son Cam Industrial Zone to enhance connectivity with supporting factories, thereby improving overall efficiency.

According to TNG’s leadership, the existing areas of the Viet Duc and Viet Thai garment factories will be used as warehouses for rent until the land use purpose is converted from industrial land to residential land due to their central location in Thai Nguyen City.

Recently, TNG announced its business results for January 2024 with revenue of VND 524 billion and net profit of VND 15 billion, up 32% and 168% respectively compared to the same period. As of the end of January, total assets reached VND 5,082 billion, of which inventory was VND 906 billion.

*TNG’s post-tax profit nearly triples in the first month of the year

In 2024, TNG expects to record additional orders from new partners. The company aims to achieve a 13% increase in revenue and profit compared to the previous year.

In 2023, despite the severe shortage of orders in the entire textile and garment industry, TNG’s revenue reached a record high in its 45 years of operation, reaching VND 7,096 billion, up 5% compared to the same period and exceeding the annual plan by 4%.

Due to high costs and the company’s acceptance of low-profit orders to ensure employment for workers, net profit for the year decreased by 23% to VND 226 billion, reaching 76% of the annual plan.

Last year, TNG ensured employment for 18,000 workers with an average income of VND 9.4 million per person per month; the total value of social security contributions was VND 8.5 billion.

TNG presents gifts to workers on the occasion of Tet Nguyen Dan 2024. Photo: TNG

In the medium term, TNG is expected to benefit greatly from its focus on meeting sustainable development factors (ESG) in the textile and garment industry from 2016 until now.

ESG is becoming a prerequisite factor in the selection of garment subcontractors by fashion brands worldwide, as most major brands like Adidas, Nike… have set out routes and commitments regarding ESG in the next 3-5 years.

TNG’s leadership states that in 2024, the company will continue to implement a 100% carbon-neutral roadmap and increase the share of renewable energy usage when planning to build and install rooftop solar and BioMass systems with an estimated investment value of around VND 800 billion.

Funding for the above project will come from green credit sources with low interest rates, so this loan will not have a significant impact on TNG’s business results in 2024, according to BSC’s assessment.

In 2024, BSC forecasts that TNG’s revenue and net profit will reach VND 8,061 billion and VND 328 billion, respectively, an increase of 14% and 45% compared to the previous year.

Forecast of TNG’s business results in 2024

Source: BSC

The Thanh

SOURCEvietstock
Previous articleDragon Capital Chairman: My mother is our longest-standing client, her investment since 1995 has multiplied by 9
Next articleDespite challenges, stock exchange sees 137 companies record-breaking profits in 2023.