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The Profitable Pen: Crafting Titles that Captivate “HSG Aims for Profit Reversal, Plans to Purchase 50-100 Million Treasury Shares”

27 February, 2025

Notably, the Group’s leadership also revealed that they have been promoting investment in many projects in Dong Nai during the 2023-2024 financial year to welcome the wave of development when Long Thanh Airport officially comes into operation.

These contents will be presented at the upcoming Annual General Meeting of Shareholders, expected to be held on March 18 in Ho Chi Minh City.

Cautious about countries erecting tariff barriers

According to the meeting documents, the HSG management board proposed two business scenarios for 2025. The first scenario targets an output of 1.8 million tons, net revenue of VND 35,000 billion, and after-tax profit of VND 400 billion. The second, more optimistic scenario aims for an output of 1.95 million tons, revenue of VND 38,000 billion, and a profit of VND 500 billion.

However, even the optimistic target of VND 500 billion is lower than the result of VND 515 billion achieved in the 2023-2024 financial year.

This plan reflects the management’s caution amidst global uncertainties, especially the potential trade war initiated by the Trump administration, along with tariff measures from countries such as the US, India, and Europe. In the domestic market, demand remains weak while there is an oversupply of steel products.

Regarding the dividend plan for the 2023-2024 financial year, the Company expects to pay a 5% cash dividend.

Notably, the Board of Directors will submit to the shareholders for approval the plan to buy back 50-100 million treasury shares. According to HSG‘s management, this move aims to protect the interests of shareholders in the face of complex fluctuations in the stock market. The buying price and timing will depend on market conditions and compliance with HOSE trading regulations.

Private Placement of Hoa Sen Plastic Joint Stock Company’s Shares

In parallel with the business plan, the Hoa Sen Group continues to promote the restructuring strategy of its operating model.

HSG will maintain its role as the parent company in the traditional steel business segment, with a production system spanning from the North to the South, including Hoa Sen Phu My Steel Sheet Joint Stock Company (capacity of 1.2 million tons/year), Hoa Sen Nghe An Joint Stock Company (1 million tons/year), Hoa Sen Nhon Hoi – Binh Dinh Joint Stock Company, and Hoa Sen Ha Nam Joint Stock Company.

In the plastic segment, HSG plans to privately place 35 million shares of Hoa Sen Plastic Joint Stock Company to strategic investors. The Group stated that it needs capital to focus on developing the Hoa Sen Home construction materials and furniture distribution chain. After the issuance, HSG‘s ownership in Hoa Sen Plastic Joint Stock Company will decrease from 99% to below 50%, making it an associated company.

At the same time, in the period of 2025-2026, the Group will establish Hoa Sen Home Joint Stock Company (owning more than 99%) to be in charge of the construction materials and furniture distribution segment, with a plan for gradual transfer within 5 years and prospects for separate listing when market conditions are favorable.

Promoting many projects in Dong Nai to welcome Long Thanh Airport

In the real estate segment, HSG is pushing forward through Hoa Sen Yen Bai Joint Stock Company. In May 2024, Hoa Sen Yen Bai Joint Stock Company increased its charter capital to VND 621 billion to “revive” the project of a Trade, Service, Hotel, and Restaurant Center and the Hoa Sen Yen Bai Organization – a project that has been implemented since 2016.

Notably, during the 2023-2024 financial year, the Group has also promoted investment in many potential projects in Dong Nai province to welcome the wave of development when Long Thanh Airport comes into operation.

Vu Hao

– 22:54 25/02/2025