AGM stock has seen a downward adjustment in the last three sessions, falling to 3,080 VND per share on August 1st, with over 317,000 shares traded. Compared to its peak this year, AGM’s market price has dropped by nearly 62% in just over four months.
| AGM Share Price Movement since the Beginning of 2024 |
The share price took a negative turn after Angimex announced its consolidated financial statements for Q2 2024, revealing unfavorable figures. Specifically, revenue reached over 92 billion VND, a 43% decrease compared to the same period last year, and the company incurred a net loss of 84.5 billion VND, a larger loss compared to the 38 billion VND loss in Q2 2023.
According to the company, high fixed costs, including depreciation, interest expenses, and provisions, remain the primary reason for the losses. Financial expenses nearly doubled from the previous year to over 53 billion VND, with interest expenses alone amounting to 41 billion VND.
For the first six months of the year, AGM’s revenue stood at nearly 151 billion VND, a 53% decrease compared to the same period last year. This decrease was attributed to the loss of 207 billion VND in revenue from Honda vehicle sales, spare parts, and repair services. Conversely, revenue from food sales increased by 67% to over 118 billion VND, making up the largest portion of the company’s revenue.
The high cost of goods sold, coupled with fixed expenses, resulted in a net loss of 99.5 billion VND for the company.
For 2024, Angimex has revised its profit-before-tax target downward to 5 billion VND, an 81% reduction from the previous plan. However, the company has yet to turn a profit. As of June 30, 2024, the accumulated loss increased to nearly 260 billion VND, causing Angimex’s equity to fall to almost 78 billion VND.
On the balance sheet, Angimex’s total assets as of the end of Q2 were recorded at 1,165 billion VND, a 6% decrease from the beginning of the year, or a difference of 72 billion VND. However, the company only had over 6 billion VND in bank deposits and less than 15 million VND in cash. On the liabilities side, the company’s total liabilities stood at 1,243 billion VND, an increase of 28 billion VND from the beginning of the year, including over 959 billion VND in loans.
To address these challenges, Angimex has been actively selling off assets to repay debts, generate cash flow, and restore its business operations. In the first six months of the year, the company recorded 6.5 billion VND in net profit from the disposal of investments in other entities and nearly 343 million VND from the sale and disposal of fixed assets.
