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Thành Công Textile and Garment Joint Stock Company’s Board of Directors has approved the unaudited business results for 2023 and the business targets for 2024, which will be presented at the 2024 Annual General Meeting. The specific time and venue for the Annual General Meeting have not been announced by TCM. The record date for shareholders is March 5, 2024.
In 2023, TCM recorded a net revenue of VND 3,325 billion and a net profit of VND 134 billion, corresponding to a decrease of 23% and 52% compared to the previous year, mainly due to weak orders and lower selling prices. This is also the lowest profit figure in 7 years for TCM since 2017. In other words, the company was unable to achieve the revenue target of VND 3,927 billion and the profit target of VND 245 billion set by the 2023 Annual General Meeting of Shareholders.
In 2024, the Board of Directors of the company will present to the shareholders a plan to achieve a net revenue of VND 3,707 billion and a net profit of VND 161 billion, corresponding to an increase of 11% and 20% respectively compared to the 2023 performance. Part of the basis for the plan is the context of Vietnam’s textile and garment exports returning to growth in the early months of the year, contrary to the bleak situation in the previous year.
According to data from the General Statistics Office, in the first two months of 2024, textile and garment exports reached USD 5.2 billion, an increase of 15% compared to the same period, ranking fourth among the highest-grossing commodity groups in the country. This result was achieved thanks to the recovery of the global textile and garment consumer market since the end of 2023.
Seizing the recovery signal, in January 2024, Thành Công Textile and Garment achieved a revenue of over USD 14.3 million (over VND 353 billion) and a net profit of USD 977 thousand (VND 24 billion), an increase of 43% and 62% compared to the same period. This is also the highest profit level in the past 9 months for TCM since May 2023. Compared to the plan presented at the 2024 Annual General Meeting of Shareholders, the company has achieved 10% of the revenue target and 15% of the profit target in the first month of the year.
The Board of Directors of TCM stated that the company has already exceeded the revenue target for the first quarter’s orders and has achieved around 80% of the revenue target for the second quarter’s orders in 2024. Based on the forecast of Vietnam’s textile and garment export situation in 2024 and the current order reception situation, the company hopes that the export order situation in 2024 will be more favorable than in 2023.
From early February 2024 until now, TCM’s stock price has been consistently increasing. In the morning session on March 11, TCM’s stock price stood at VND 45,000 per share, an increase of nearly 13% in just over a month; but far from the historical peak of VND 80,000 per share set in late March 2021.
| TCM stock price performance since the beginning of 2024 |
High-level leadership changes
In terms of operations, the Board of Directors of TCM has appointed Mr. Song Jae Ho as the Chief Executive Officer, the Legal Representative of the Company for the term of 3 years (2024-2027), replacing Mr. Jung Sung Kwan from March 5, 2024.
Previously, Mr. Jung Sung Kwan submitted his resignation as the Chief Executive Officer and withdrew from the position as a member of the Board of Directors of TCM for the term of 2021-2025 due to personal reasons.
Thành Công Textile and Garment has also relieved Mr. Song Jae Ung from the position of Deputy CEO from January 10, 2024, after serving in this position for 1 year, following his personal wishes.
In June 2023, the Board of Directors of TCM appointed Mr. Lê Hyoung Kyu as Director of Strategy and Mr. Han Kwang Taek as Director of Innovation.
