|
May Thanh Tri’s workforce has decreased by almost 90% since the end of 2008, now standing at 147 employees. |
The Board of Directors of Thanh Tri Garment Joint Stock Company (UPCoM: TTG) has just approved changes to the capital usage plan from the 2024 private offering of shares, based on the 2025 AGM resolution.
Previously, in late August 2024, TTG successfully sold 1.4 million shares at VND 10,000/share, raising VND 14 billion and increasing its charter capital from VND 20 billion to VND 34 billion.
Initially, the proceeds were intended to be used for social insurance debt payment (VND 3.4 billion), labor costs for Q3 2024 (VND 4.3 billion), factory improvement (VND 4 billion), and rent payment from April 2024 to April 2025 (VND 2.3 billion). The disbursement was scheduled for Q3 2024.
However, as of February 13, 2025, the Company has only completed two items: social insurance debt payment and Q3 2024 salary payment. The remaining two items have been proposed for adjustment. Specifically, VND 4 billion will be allocated for Q3 2025 salaries, and VND 2.3 billion for rent from September 2024 to September 2025. The disbursement has been postponed to Q3 2025.
Explaining the adjustments, the Company stated that they could not reach an agreement with the supplier regarding the type of goods and unit price, hindering the planned factory upgrade. The rent payment also needed adjustment as the Company had advanced its own capital to pay for warehouse rent from April to August 2024, and then used the raised capital to pay for the remaining period from September 2024 to April 2025.
Reducing ownership in subsidiary due to cash flow constraints
The cash flow pressure is also reflected in the Board’s decision to reduce its ownership in the subsidiary – Thanh Tri Garment JSC TTG – from 60% to 49% in late 2024 due to insufficient capital contribution as initially committed (VND 5.94 billion). The Company also had to balance bonus payments during the Tet holiday, resulting in limited financial resources.
This was one of the two subsidiaries established by TTG in 2024. For the other subsidiary – Thanh Tri Phu Tho Garment JSC, TTG withdrew capital just a few months after its establishment, as the development orientation no longer aligned with their strategy.
Nevertheless, the 2025 AGM approved the plan to establish a subsidiary to acquire land for investment projects in various provinces. The subsidiary or joint venture will operate in the textile and related industries, with a capital contribution of up to VND 20 billion.
In parallel, shareholders also agreed to exempt the public offering requirement for Song Da 19 Joint Stock Company (UPCoM: SJM) – a major shareholder currently holding 11.76% of TTG‘s capital – when receiving the transfer of a total of more than 1.5 million shares, equivalent to 44.28% of the capital, from nine existing shareholders (including five major shareholders who will divest entirely). If the transaction is completed, SJM will become the parent company of TTG with a 56.04% ownership stake.
Projected 2025 profit is 5.5 times higher than the previous year
May Thanh Tri (TTG), formerly known as Thanh Tri Export Garment Enterprise, was established in 1992 in Hanoi and equitized in 2008. At the time of equitization, the Company had nearly 1,100 employees, but by the end of 2024, this number had dropped to 147.
While the Company does not publish quarterly financial statements, according to annual reports, TTG incurred losses for three consecutive years from 2020 to 2022 before returning to profitability with a profit of VND 1.8 billion in 2023 and VND 2.2 billion in 2024. However, the Company still had accumulated losses of VND 13.3 billion at the end of 2024.
The 2025 plan is quite ambitious, targeting a revenue of VND 60 billion and a net profit of VND 12 billion, 5.5 times higher than the previous year. However, TTG has not paid dividends, with the last dividend payment made in 2018.
| TTG’s Financial Results for 2019-2024 |
Notably, by the end of 2024, TTG had fully settled its financial debts (down from VND 1.3 billion at the beginning of the year). Total liabilities were less than VND 3 billion, mainly comprising employee benefit expenses (VND 1.2 billion), other short-term payables, and tax liabilities.
In the stock market, TTG shares are currently trading around VND 10,900/share, a decrease of over 30% since the beginning of April 2025 – a period marked by negative news about tariffs. The share price has also dropped by nearly 60% from its peak of VND 27,000/share in late November 2024.
Currently, the share price has returned to the bottom level of September 2024, the starting point of a strong upward trend that lasted until the end of November. Over the past year, TTG has declined by nearly 29% in value, with an average daily trading volume of just over 3,800 shares.
| TTG Share Price Movement over the Past Year |
– 15:13 19/05/2025
Legamex: A Legacy of Saigon’s Textile Industry Fades Away
Once a leading garment manufacturer in Vietnam, Legamex is now embroiled in a financial crisis, with cumulative losses surpassing VND 166 billion and negative equity. The company has been compelled to halt its core contract manufacturing operations and revise its plans for utilizing capital raised through equity offerings to repay its financial obligations.
The Top 10 Best-Performing Stocks: New Kid on the Block Creates Waves, a State-Owned Enterprise Stock Soars by Almost 60%
Vinpearl tops the leaderboard of stocks with the strongest gains, surging across four consecutive sessions, three of which hit the ceiling price.
“Viconship Acquires Over 1 Million Additional Shares of Haiphong Shipping and Stevedoring Company (HAH)”
A group of shareholders associated with Viconship has increased their ownership to 11.61% of the charter capital in Hai An Transport and Stevedoring.
The Rising Dollar: An Unstoppable Force?
In the week of May 12-16, 2025, the US dollar continued its upward trajectory in the international market following the trade agreement between the US and China.
“Shareholder Meeting: Considering Multiple Payment Installments to Reclaim the Bac Phuoc Kien Project”
At the 2025 Annual General Meeting held on May 17, JSC Quoc Cuong Gia Lai (HOSE: QCG) will propose to its shareholders a target of VND 300 billion in pre-tax profit, a figure surpassed only in 2010 and 2017, alongside record-breaking revenue. The most surprising item on the agenda is the proposal to change the company’s name after over three decades of operation.
