| Pre-tax profit dynamics of HAX from 2015 until now |
In 2023, Haxaco Corporation (Haxaco, HOSE: HAX) set a pre-tax profit target for the parent company at VND 310 billion but achieved only over 10%, reaching VND 41 billion.
The challenging economic situation makes the luxury car segment even more difficult. HAX sold only about 1.1 thousand new cars, far behind the figures of 2.8 thousand cars in 2022 and 2.3 thousand cars in 2021. Consequently, the revenue also contracted by 41% compared to the same period last year, reaching VND 3.9 trillion.
With a loss of up to 85% in net profit, only VND 35 billion is left, making 2023 the year with the lowest profits for HAX since 2015, despite having just achieved a record level in 2022 (VND 239 billion).
Last year, the situation only improved for HAX from the second half of the year 2023 when it benefited from the regulation reducing 50% of the registration fee for domestically produced and assembled cars. HAX said that more customers came to buy cars since the beginning of July, especially the new GLC models.
Throughout the past year, HAX continued to be the authorized distributor that held the largest market share of Mercedes-Benz in Vietnam. The company has opened additional dealerships and branches selling MG cars in its subsidiaries. Specifically, Western Passenger and Services JSC, the subsidiary that HAX holds 62.11% of, officially inaugurated the MG Kinh Duong Vuong dealership in September 2023.
In the first 3 months of 2024, it will be the turn of the subsidiary PTM Manufacturing, Trading and Automobile Services JSC (HAX holds 98.32%) to open the Premium MG Bac Giang dealership, and the subsidiary Can Tho Mechanical Automobile JSC (HAX holds 85.89%) to open the Premium Can Tho dealership.
HAX‘s subsidiary has just opened an MG dealership in Can Tho. Source: HAX
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In 2023, Chairman of the Board of Directors, Do Tien Dung, received a monthly salary of VND 30 million, while the remaining members received VND 15 million/month/person, maintaining the same levels since 2019. It is also proposed to keep these salaries unchanged throughout 2024. CEO Nguyen Thi Ngoc Bich received an average of VND 102 million/month, a decrease from VND 112 million in 2022. Deputy Directors received VND 71 million/month/person, which is approximately VND 7 million less than the average in the previous year.
In 2024, HAX plans to make more efforts in distributing MG-branded cars and participating in the electric car segment with Mercedes-Benz and Vinfast. At the same time, the Company will continue to expand its business, conduct research to diversify its product portfolio, and develop a long-term strategic orientation to build a reputable brand and gain customer trust.
During the 2024-2025 period, HAX plans to spend no more than VND 200 billion to carry out investment and expansion to optimize business efficiency. This will be done through capital contribution or buying shares of subsidiaries, companies in the same industry, and with potential for development.
Recently, HAX proposed a dividend payout ratio of 18% for the year 2023, lower than the 30% ratio in 2022. Among this, 3% will be paid in cash (1 share will receive VND 300) and 15% will be distributed in stock dividends (100 shares will receive 15 new shares).
The Company plans to spend VND 28 billion to pay dividends and issue over 14 million new shares to shareholders. If successful, the Company’s charter capital will increase from VND 934 billion to over VND 1,074 billion.
The implementation time will be after being approved by the General Meeting of Shareholders and the State Securities Commission announces the receipt of full reporting documents for the issuance. It is expected to take place in the second and third quarters of 2024.
* Haxaco plans to pay cash dividends and stock bonuses, with a total ratio of 18%
