AGM stock has seen a downward adjustment in the last three sessions, falling to 3,080 VND per share on August 1st. This represents a near 62% decline from its highest price this year, with over 317 thousand shares matched.
| AGM Share Price Movement since the Beginning of 2024 |
The negative price movement comes on the back of Angimex’s consolidated financial statements for Q2 2024, which showed disappointing results. Revenue for the quarter stood at over 92 billion VND, a 43% decrease year-on-year, while the company incurred a net loss of 84.5 billion VND, wider than the loss of over 38 billion VND in Q2 2023.
According to the company, high fixed costs, including depreciation, interest expenses, and provisions, remained the primary reason for the losses. Financial expenses nearly doubled year-on-year to over 53 billion VND, with interest expenses alone amounting to 41 billion VND.
For the first six months of the year, AGM’s revenue reached nearly 151 billion VND, a 53% decrease year-on-year. This was due to the absence of revenue from Honda vehicle sales, spare parts, and repair services, which totaled 207 billion VND in the previous year. Conversely, revenue from rice sales increased by 67% to over 118 billion VND, becoming the largest contributor to the company’s revenue stream.
High cost of goods sold, coupled with fixed expenses, resulted in a net loss of 99.5 billion VND for the company.
For 2024, Angimex has revised its profit target downward to 5 billion VND, an 81% reduction from the previous plan. However, the company has yet to turn a profit. As of June 30, 2024, the accumulated loss increased to nearly 260 billion VND, causing Angimex’s equity to fall to almost 78 billion VND.
On the balance sheet, Angimex’s total assets as of the end of Q2 stood at 1,165 billion VND, a 6% decrease from the beginning of the year, or a difference of 72 billion VND. However, the company only held over 6 billion VND in bank deposits and less than 15 million VND in cash. On the liabilities side, total liabilities were 1,243 billion VND, an increase of 28 billion VND from the beginning of the year, including over 959 billion VND in borrowings.
To address its financial challenges, Angimex has been actively selling off assets to repay debts, generate cash flow, and restore its business operations. In the first six months of the year, the company recorded a gain of 6.5 billion VND from the disposal of investments in other entities and nearly 343 million VND from the sale and disposal of fixed assets.
