Recently, HPG announced a resolution to issue 581.5 million additional shares at a ratio of 10%, meaning that shareholders owning 10 shares will receive 1 new share. The issuance is expected to take place from the second quarter onwards, subject to approval by the State Securities Commission.
If the issuance is successful, the number of shares outstanding of Hoa Phat will increase to nearly 6.4 billion shares, equivalent to a charter capital of nearly 64 trillion VND. This is the second-largest number of shares outstanding on the stock exchange, behind only VPB with 7.9 billion shares.
Top 10 companies with the largest number of outstanding shares
As of 26/04. Unit: Billion shares
Source: VietstockFinance
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In recent developments, HPG recorded net revenue of nearly 30,900 billion VND in the first quarter of 2024, an increase of 16% year-on-year; net profit of nearly 2,900 billion VND, 7.2 times higher than in the same period last year.
The Group reported that steel construction prices in the Vietnamese market increased from November 2023 to January 2024 and began to correct slightly at the end of the quarter. The price of hot rolled coil has increased considerably compared to the beginning of the year, along with the stability in the consumption output of this product, which was the driving force behind the Group’s revenue growth in this quarter, partially offsetting the decline in revenue from steel construction products.
In addition, raw material prices did not fluctuate significantly during the period. The full operation of the blast furnace in this quarter also helped reduce the burden of depreciation costs in the unit cost of products compared to the previous period.
The Group’s report also stated that from the fourth quarter of 2023, Hoa Phat’s Dung Quat complex achieved complete self-sufficiency in electricity, significantly reducing energy costs in the production cost of steel products.
