Agriseco’s 2024 annual GMS was held on the morning of April 22 in Hanoi. Photo: Thế Mạnh
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As of 9:00 AM on April 22, Agriseco’s 2024 annual GMS was attended by 13 shareholders, representing more than 161.4 million shares, equivalent to 74.93% of the total number of voting shares. The General Meeting is eligible to proceed.
Pre-tax profit target increases slightly by 1%
Looking ahead to 2024, Agriseco’s leadership believes that the stock market is expected to present both opportunities and challenges, but overall, the difficult factors and risks are greater.
Based on this, the Company set a target of total revenue of 400 billion VND, an increase of more than 10% compared to the implementation in 2023. Pre-tax profit is expected to be 185 billion VND, a slight increase of 1%. The company also plans to pay a dividend of 6%.
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Agriseco’s Pre-tax Profit from 2010 – 2023 |
Currently, Agriseco has announced its Q1/2024 Financial Statements with total operating revenue of more than 92 billion VND, an increase of 8% compared to the same period last year. After deducting expenses, pre-tax profit decreased by 20% to nearly 44 billion VND, fulfilling about 24% of the annual profit plan.
Distributing 7% cash dividend for 2023
Regarding the profit distribution plan for 2023, after deducting funds, Agriseco plans to allocate nearly 151 billion VND to pay cash dividends to shareholders at a rate of 7% (owning 1 share will receive 700 VND). However, most of this dividend will go to the Bank for Agriculture and Rural Development of Vietnam (Agribank) – the parent bank that owns more than 75% of Agriseco’s capital.
After the dividend distribution, Agriseco’s retained undistributed profit will be more than 107 billion VND.
At the General Meeting, Agriseco shareholders considered and approved the election of members of the Board of Directors (BOD) and the Supervisory Board (SB) for the term 2024 – 2029. Accordingly, the number of members in the BOD is 5, and the number of members in the SB is 3.
As a result of the BOD election, all candidates were elected to the new BOD for the term 2024 – 2029, including Mr. Phan Văn Tuấn; Mr. Lê Sơn Tùng; Mr. Nguyễn Đức Thuận; Ms. Nguyễn Thị Hồng Hạnh; Mr. Đoàn Ngọc Hoàn.
The results of the SB election for the term 2024 – 2029 include: Ms. Lê Hương Giang; Ms. Nguyễn Thị Hồng Dương; Mr. Đỗ Đức Tú.
Discussion
Participation in derivative industry requires large investment in technology
How to invest in stock derivatives? What is the upcoming direction of the company in this field?
Mr. Phan Văn Tuấn – Chairman of Agriseco’s BOD: The Company has had a plan for several years, but currently it is not yet possible to participate in the derivative market. We also have a headache and have to consider whether participation will have advantages and disadvantages.
The company still has too much to do, in which the underlying market has a lot of potential to exploit. When participating in the derivative market, it must also meet 3 conditions: in terms of finance and personnel, we have met the requirements according to regulations, however, the technology condition has not been met, the investment in technology is not small, we need calculate more carefully, both in line with strategic goals and ensuring the interests of shareholders.
In summary, we will continue to research and participate in stock derivative investment at the right time, but we need to calculate more carefully.
Regarding the underlying stock market, we will focus on the market in the provinces, because Tp. Ho Chi Minh and Hanoi are competing very fiercely, it is difficult to compete for market share. The company will take advantage of Agribank‘s 24 million customers, present throughout the country, bringing great potential to Agriseco.
In the near future, Agriseco will participate more deeply in the Agribank ecosystem. Recently, we also signed a comprehensive cooperation agreement with Agribank, but the results of the contribution in 2023 have not been as expected.
Does Agriseco’s system meet the KRX? How will the implementation of KRX affect the company?
Chairman Phan Văn Tuấn: The company’s system is basically ready for KRX. As soon as the plan of the SBCV is implemented, we are one of the companies that meet the top in the test rounds.
Share about the recent cybersecurity incident? How did Agriseco prepare for it?
Chairman Phan Văn Tuấn: The issue of cybersecurity is causing investors to worry a lot, the company has also prepared very early by investing in a security system a few years ago. Agriseco will try to meet basic requirements, better experience for customers.
Prefund service for foreign investors, does Agriseco have any plans to implement it?
Mr. Lê Sơn Tùng – General Director and Member of Agriseco’s BOD: This is a new service, VSD has not yet issued regulations, it is only a guide for companies to implement, the possibility of implementation is not yet available. Agriseco is studying, and the possibility of implementation in the near future will have to wait.
Setting a margin loan balance target of 2,400 billion VND for 2024
Share about the dividend payment plan?
Chairman Phan Văn Tuấn: Agriseco used to be number 1 in terms of scale, total assets, profit… After the process of treating the “terminal illness”, we mainly managed to survive. After the severe illness, last year Agriseco’s charter capital ranked 24th in the market, total assets ranked 33rd. Agriseco’s position in the industry is declining very sharply, but not from internal factors, but because market competitors are developing very quickly.
After the end of the restructuring, Agriseco only re-distributed the 2022 dividend (which was paid in 2023) because in previous years there were accumulated losses so no distribution was made. This year, the company tries to submit to the GMS to pay a cash dividend of 7% to thank the shareholders who shared with the company in the recent difficult period. We have used almost all of the undistributed profit for shareholders, while the remaining profit is less than a hundred billion VND.
Progress of 2024 plan implementation?
Chairman Phan Văn Tuấn: This year’s target will definitely be achieved in terms of both revenue and profit. Although Q1 was slightly modest with revenue reaching 23% of the annual plan due to the impact of the Lunar New Year holiday, it will create a springboard for this year to achieve the target.
Share about the company’s margin lending balance?
Chairman Phan Văn Tuấn: At this time, the margin lending balance of the entire securities industry is very high, even higher than the “peak” in 2
