Haxaco Group (HAX): Estimated Q2 Profit of VND 30 Billion, with 90% from MG Car Distribution

“Haxaco Group’s estimated profit for Q2 2024 reached approximately VND 30 billion, 90% of which came from MG automobile distribution,” said Mr. Do Tien Dung, Chairman of the Board of Directors of Haxaco Group (Haxaco Group) at the inauguration ceremony of the MG Dong Nai showroom on the evening of June 29.

This is the largest MG Premium dealer in the Southeast region with a total area of 2,300 sq. m. Up to now, Haxaco Group has had more than 10 MG dealerships nationwide, including in Ho Chi Minh City, Hanoi, Bac Giang, Bac Ninh, Can Tho, and Dong Nai.

Haxaco’s leadership stated that Dong Nai is the gateway to the Southeast region – the most dynamic and developed economic region in the country, and it is also the fourth-largest car consumer area in Vietnam (according to 2023 data). Given the potential of this locality, since June 2024, PTM Production, Trading and Services Joint Stock Company, a subsidiary of Haxaco, has completed and put into operation the dealership system in Dong Nai.

In the second quarter of 2023, the company’s pre-tax profit was a meager VND 4 billion. Thus, the estimated profit for Q2 2024 is 7.5 times higher than the same period last year.

Previously, the low-base growth of the same period was recorded in Q1/2024 when the company achieved a revenue of VND 1,038 billion, an increase of nearly 5% compared to the same period in 2023, and a pre-tax profit of VND 41 billion, 7.3 times higher than that of Q1/2023. Post-tax profit reached nearly VND 32 billion, 9 times higher than the previous year.

Haxaco’s orientation for 2024 is to continue expanding its car business, diversify its product portfolio, and develop long-term strategies. This includes a particular focus on distributing MG-branded automobiles.

Mr. Dung declared that Haxaco aims to capture up to 40% of the MG market share by investing in all 10 dealerships without bank loans, only borrowing to import cars, and employing around 500 sales staff.

For 2024, Haxaco sets a consolidated pre-tax profit target of VND 200 billion, 4.2 times higher than the low base of the previous year (VND 48 billion). According to Mr. Dung, the potential profit from MG car distribution is expected to reach VND 100 billion, accounting for 50%.

MG Motor (Morris Garages), a British car brand established in 1924, has transformed into a global automotive brand with the financial backing of SAIC MOTOR. MG products are distributed in 39 countries and territories, with six global assembly plants and nearly 300,000 units delivered to consumers annually. Today, MG’s new-generation models, such as the MG5, MG ZS, MG RX5, MG HS, MG 4, and MG CYBERSTER, are all equipped with advanced technologies.

Speaking at the inauguration ceremony, Mr. Do Tien Dung shared: “With 30 years of experience in the industry and a 40% market share of Mercedes in Vietnam, we are determined to do the same with the MG brand.”

Mr. Dung affirmed, “Anyone who has experienced MG cars, whether through test drives or ownership, will not be disappointed with either the design or the quality. This is evident in the company’s five-year warranty policy. In addition, we also offer a non-profit used car buyback service. Our repurchase value is 85% of the new car price, and we provide free valuation and quality inspection for all used cars.”

Mr. Tran Nam Thang, Deputy General Director of SAIC Motor Vietnam Co., Ltd. (SMV), said that in the past three years, MG has sold 20,000 units in the Vietnamese market.

“We are confident that MG is one of the leading brands that dares to commit to quality for Vietnamese customers,” emphasized Mr. Thang.

At the MG Dong Nai showroom inauguration event, customers experienced all MG models currently distributed in Vietnam, including the MG5, New MG5 MT, MG ZS, MG HS, MG RX5, and the special presence of the All New MG4 – MG’s first electric car in Vietnam.