Mr. Trinh Trung Hieu, Chairman of the Board of Directors of Huu Nghi Food Joint Stock Company (HNF), registered to purchase nearly 3.5 million HNF shares. If the transaction is successful, Mr. Hieu will increase his holdings from 8.23 million shares (equivalent to 27.45% of charter capital) to 11.73 million shares, representing 39.09% of the capital.
Based on the trading price of VND 28,600 per share on September 18, 2024, Mr. Hieu is estimated to spend approximately VND 100 billion to acquire 3.5 million HNF shares.
Mr. Trinh Trung Hieu’s move to purchase shares comes as HNF’s stock has risen 41% since the beginning of 2024, bringing the company’s market capitalization to VND 858 billion.
Notably, the volume of shares registered for trading by Mr. Hieu is equal to the total volume sold by three individuals who were former leaders and related parties at HNF. Specifically, two former leaders of the company, Ms. Le Thi Lan Anh, former Vice Chairwoman of the Board of Directors, and Mr. Le Viet Anh, former Deputy General Director and Member of the Board of Directors (Mr. Viet Anh’s sister), registered to sell their entire holdings, which amount to 1 million units (3.34% of capital) and 1.35 million units (4.5% of capital), respectively.
Ms. Vu Lam Nhi, daughter of Ms. Lan Anh, also registered to sell 1.14 million HNF shares (3.8% of charter capital) from September 19 to October 18, 2024, for portfolio restructuring purposes. The planned trading period coincides with the time frame of Mr. Hieu’s intended purchase.
Illustrative image
Previously, at the 2024 Extraordinary General Meeting of Shareholders, the company’s shareholders approved Mr. Hieu’s continued acquisition of shares from certain shareholders to increase his ownership percentage without the need for a public offering.
In terms of business performance, for the first six months of 2024, Huu Nghi Food recorded net revenue of VND 813 billion, an increase of 18% over the same period last year. Gross profit exceeded VND 245 billion, up 61%. The company reported a pre-tax profit of VND 69 billion and a post-tax profit of VND 60.8 billion, representing a 6.3-fold and 7.1-fold increase, respectively, compared to the same period in 2023.
For the full year 2024, Huu Nghi set targets of VND 2,077.65 billion in revenue, VND 68.35 billion in pre-tax profit, and a 10% dividend payout ratio in cash. After the first half, the company has achieved 41.6% of its revenue target and slightly exceeded its profit plan.
As of the end of the second quarter of 2024, the company’s total assets stood at VND 1,680 billion, a slight decrease from the beginning of the period. Liabilities amounted to VND 1,074 billion, mainly comprising short-term debt. Owners’ equity reached VND 606 billion, with undistributed post-tax profits of over VND 179 billion.
PV
The Ultimate Headline:
“Shareholders Await the Biggest Deal in Vietnam’s Stock Market History: When Will Vinhomes Buy Back its Shares?”
“Shares of Vinhomes, trading as VHM on the stock exchange, have surged by approximately 27% since the company first announced its plan to purchase treasury stocks in early August.”
“Vinhomes Shareholders Approve Repurchase of 370 Million VHM Shares, Market Capitalization Surges by VND 40,000 Billion in Just One Month”
Vinhomes will purchase its shares immediately after gaining approval from the State Securities Commission for its share buyback scheme.
