TNH Joint Stock Hospital Group Corporation (TNH-HOSE) announces the Board of Directors’ resolution on the continuation of the loan term extension for Board members under the signed loan contract.
Accordingly, the TNH Board of Directors approved the signing of an addendum to extend the loan term for Board members, amounting to VND 92 billion. It is understood that this is the amount the company borrowed from its leaders to repay bonds issued in 2020.
The extension period is until March 31, 2025. The reason is that the company needs to complete the procedure for issuing shares according to the Resolution of the 2023 Annual General Meeting of Shareholders and have new capital to arrange for debt repayment under the signed contract.
Notably, this is the third time TNH has extended the debt repayment period. The first extension was until May 31, 2024, and the second until October 31, 2024.
This loan is unsecured, with an interest rate equivalent to the 12-month term deposit interest rate of the Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV) applied on September 1, 2022. The list of Board members who have lent to TNH includes Mr. Hoang Tuyen, Chairman of the Board of Directors (VND 35.6 billion); Mr. Le Xuan Tan (VND 11.4 billion); Mr. Nguyen Van Thuy (VND 35 billion); and Mr. Nguyen Xuan Don (VND 10 billion).
For the first half of 2024, TNH recorded revenue of VND 222.49 billion, a 3.1% decrease compared to the same period last year (VND 229.6 billion), and after-tax profit of VND 53.6 billion, a 13.5% decrease compared to the same period (nearly VND 62 billion).
In 2024, TNH set a revenue plan of VND 540 billion and an after-tax profit target of VND 155 billion. Thus, by the end of the first half of 2024, TNH had achieved 34.6% of its annual plan.
It is known that in early June 2024, TNH announced an increase in hospital fees, and with the new hospital fee schedule taking effect from June 15, 2024, VCSC expects TNH’s average service price to be higher in the second half of 2024.
In addition, VCSC also expects the total number of outpatient examinations by TNH to gradually improve towards the end of the year. This growth will be supported by the recovery in the number of workers at Yen Binh Industrial Park, especially from TNH’s key customer – Samsung Electronics Thai Nguyen, which will drive the number of examinations at Yen Binh General Hospital; and growth from the number of new examinations at TNH Viet Yen when this hospital comes into operation in Q3 2024.
TNH sets a target for net revenue and after-tax profit in 2024 at VND 540 billion (+2% yoy) and VND 155 billion (+11% yoy), respectively. In VCSC’s opinion, TNH’s revenue target is feasible thanks to the increase in hospital fees and the number of patients. However, the after-tax profit target for 2024 may face challenges due to higher operating costs from the upcoming operation of TNH Viet Yen General Hospital and increased interest expenses due to higher debt.
In addition, the goal is to increase the bed occupancy rate to nearly four times by 2030. In VCSC’s view, TNH’s goal to quadruple its scale by 2030 is quite ambitious. Given the capital-intensive nature and lengthy hospital development process, ensuring sufficient funding is crucial. To address this, TNH has decided to increase the foreign ownership limit from 49% to 70%. This move could help attract international investors, providing the necessary capital for expansion and benefiting TNH from strategic partnerships and technology transfers in the medium term.
