The Board of Directors of Hoa Phat Group Corporation (HPG) has recently approved a resolution on the detailed plan for issuing shares from the company’s equity in 2023.
Specifically, HPG will issue 581.4 million shares at a ratio of 10% (corresponding to shareholders owning 10 shares will receive 1 new share). The expected implementation period is from the second quarter of 2024 after approval by the State Securities Commission of Vietnam.
Upon completion, HPG’s charter capital will increase to over 63,960 billion VND, corresponding to approximately 6.4 billion shares outstanding. HPG stated that the purpose of the share issuance is to balance the structure between charter capital and equity commensurate with the company’s production, business, and operation scale.
Previously, HPG successfully organized its 2024 Annual General Meeting of Shareholders. According to the information disclosed, as of the record date, the Group had 165,900 shareholders – one of the largest number of shareholders on the Vietnamese stock market.
At the meeting, HPG shareholders approved a plan to achieve revenue of VND 140,000 billion, with an expected after-tax profit of VND 10,000 billion, increasing by 18% and 47% compared to the previous year, respectively. HPG unanimously agreed not to pay dividends for 2023 and planned to issue bonus shares in 2024 at 10% and a cash or stock dividend in 2024 at 10%.
At the same time, HPG temporarily halted the bauxite project to focus on steel trading, especially the Dung Quat 2 Steel Complex project; HPG is actively researching high-tech steel products to serve its long-term product expansion plan; and continues to pursue a proposal to impose anti-dumping tax on hot-rolled coil (HRC) steel imported from China.
According to the recently announced Q1 financial statements, net revenue reached VND 30,852 billion, an increase of 16% compared to the same period last year. As a result, after-tax profit reached VND 2,869 billion, 7.5 times higher than the same period in 2023, but still slightly lower than the previous quarter. Thus, after only the first 3 months of this year, Hoa Phat Group has achieved approximately 28% of its profit target for the whole year.
Closing at VND 28,550 per share on April 25.
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