On November 28, the Board of Directors of Nam Kim Steel (stock code: NKG) issued a resolution approving the plan to research and produce tin-plated steel for the packaging industry and nickel-plated tin steel for electric vehicle battery casings, targeting both domestic and export markets.
According to the resolution, the Board has tasked the CEO with evaluating and presenting a feasible plan. This initiative will be executed based on the assessment and selection of a joint venture partner with strong technical capabilities and industry experience.
The company aims to maximize the utilization of its existing production capacities while investing in advanced equipment to develop products for the industrial and food packaging sectors, initially focusing on domestic and export markets.
The next phase involves collaborating with technically and technologically proficient partners through joint ventures to produce nickel-plated tin steel for electric vehicle battery casings.
Earlier in September, the NKG Board approved a capital increase for its subsidiary, Nam Kim Phu My Steel Co., Ltd. Specifically, NKG will inject an additional 620 billion VND, raising the subsidiary’s chartered capital to 2,700 billion VND. The capital contribution will be made in multiple installments during 2025 and/or 2026.
The purpose of this capital increase is to fund the Nam Kim Phu My Steel Sheet Plant project and provide working capital for Nam Kim Phu My Steel Co., Ltd.’s operations.
Previously, NKG had already increased its investment in the Nam Kim Phu My Steel Sheet Plant project for the second time. The total investment for the project was raised by 400 billion VND to 6,200 billion VND, spanning two phases until 2027. This increase aims to fund additional production lines, technology, and the manufacturing of silicon steel for applications in electric motors, automobiles, and transformers.
In Q3, Nam Kim Steel reported revenue of over 3,770 billion VND, a 27% decline, and a net profit of 49.5 billion VND, down nearly 24%. Over the first nine months, export revenue dropped by more than 55%, reducing after-tax profit to 207 billion VND, a decrease of over 50%.
The company attributed the decline to reduced market demand, resulting in a 27.25% drop in Q3 revenue, outpacing the 24.14% decrease in cost of goods sold. This led to a 60.13% reduction in gross profit margin and a 23.62% decrease in after-tax profit.
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