The stock market took a sharp downturn after six consecutive sessions of gains, but shares of HHP Global JSC (ticker: HHP) surprised investors by surging to the daily limit of VND 10,000 per share, the highest level in three months. Trading volume exceeded 1 million units, the highest since November last year. Notably, the stock also witnessed a “sell-side drought” with tens of thousands of buy orders at the ceiling price.
Just before this unexpected surge, HHP Global approved the resolution of its Board of Directors regarding the contents of the Credit Facility Agreement, Mortgage Agreement, and related documents signed between the company and the Vietnam Industrial and Commercial Bank – Tien Son Branch (VietinBank Tien Son).
The credit limit was set at over VND 1,145 billion, including VND 400 billion in short-term credit and VND 745 billion in long-term credit. The short-term credit is intended for the company’s production and trading of packaging paper and related products in the paper industry. The long-term credit will finance the full principal debt at Bao Viet Bank, which the company has disbursed to pay eligible and legal expenses for the relocation and expansion project of the Hoang Ha Paper Mill.
HHP Global, formerly known as Hoang Ha Hai Phong Paper Joint Stock Company, was established in November 2012, specializing in packaging paper production. Starting with a modest initial capital contribution of VND 18 billion for the Duc Duong Paper Mill restructuring project, the company’s charter capital has now grown to over VND 865 billion.
For 2024, HHP Global set ambitious business targets, aiming for revenue of VND 1,850 billion and after-tax profit of VND 44.8 billion, representing year-on-year increases of 66% and 113%, respectively. In the first quarter, HHP Global recorded nearly VND 412 billion in revenue, up 73% from the same period in 2023, thus achieving 22% of its annual plan. After-tax profit reached nearly VND 6 billion, a 40% decrease compared to the previous year, fulfilling 13% of the plan.
The previous annual general meeting of shareholders (AGM) also approved the plan to increase the ownership ratio in Hoang Ha Phu Yen Paper Company to a minimum of 65% and a maximum of no more than 80%.
Additionally, the AGM considered a proposal to modify the plan for utilizing capital raised from the private placement of shares to increase the company’s charter capital in 2023-2024. Specifically, HHP Global intends to use VND 100 billion to repay debts to credit institutions and contribute capital to Hoang Ha Phu Yen Paper Company.
Regarding the support strategy for this subsidiary, HHP stated that it would continue to deploy experienced executives and experts who were involved in the HHPPaper Hai Phong Project to assist in management, technology selection, equipment procurement, contractor selection, contract negotiation, and other tasks related to the 100,000-ton-per-year paper mill project of the subsidiary.
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