The Money-Spinner: Selling a ‘Must-Have’ Item Cheaper than Iced Tea, This Vietnamese Enterprise Turns a Cool Profit of Nearly VND 6 Billion a Month

Specifically, according to the reviewed semi-annual financial statements of Hanoi Battery Joint Stock Company (Habaco – PHN), revenue in the first six months reached over 219 billion VND, a 7.4% increase, thanks to improved sales volume.

During this period, the stable battery market led to increased production and consumption by the company. Moreover, the decrease in the price of main raw materials resulted in a reduction in the company’s input costs compared to the same period in 2023. Consequently, the gross profit from Hanoi Battery Joint Stock Company’s business activities amounted to 60.8 billion VND, reflecting a notable 43.9% surge compared to the first half of 2023.

After deducting expenses, the company’s net profit for the first six months of 2024 stood at over 33.9 billion VND, marking a 70% increase compared to the first half of 2023. This equates to an average monthly profit of 5.65 billion VND.

With these encouraging results in the first half of the year, Hanoi Battery Joint Stock Company has accomplished over 61% of its profit target for 2024. In fact, this year, the company’s management expects to sell more than 386 million batteries, leveraging the government’s stimulus policies and VAT reductions, along with a favorable environment of lower interest rates and anticipated economic recovery and increased consumption.

According to the company’s semi-annual financial statements for 2024, among the fixed cost groups, financial expenses amounted to approximately 3.2 billion VND, representing a reduction of over 30%. Hanoi Battery Joint Stock Company does not have any financial debt.

Attributable to the consistently improving business performance, Hanoi Battery Joint Stock Company maintains a policy of high dividend payouts. The company has scheduled a cash dividend payout for 2024 to its shareholders, with a rate of 50%, equivalent to 36.3 billion VND. In fact, at the beginning of June 2024, Hanoi Battery distributed a partial dividend in advance, with a rate of 30%. Over the years, the company has consistently maintained a policy of high and regular dividend payouts to its shareholders.

Hanoi Battery: A Company with Over 60 Years of History and Renowned Products

Hanoi Battery Joint Stock Company, formerly known as Van Dien Battery Factory, was established in early 1960. It was considered the first and only factory in the North at that time, producing and supplying batteries for national defense, security, and other purposes of the national economy. The initial design capacity of the factory was 5 million batteries per year, mainly producing R20 and R40 batteries.

However, following the renewal policy of the Party and the State, in late 2003, Hanoi Battery initiated the equitization process. In December 2003, the company held its first General Meeting of Shareholders. On January 2, 2004, Hanoi Battery commenced operations as a joint-stock company.

Among the company’s battery products, the Rabbit Battery brand has become a household name for many generations of Vietnamese families across the country, from urban to rural areas and from the North to the South.

Since 2010, GP Batteries International Limited, a leading consumer and rechargeable battery manufacturer in Asia, has been a strategic shareholder of Hanoi Battery, holding 30% of its capital. In 2020, the GP Battery Group acquired a 49% stake after the Vietnam National Chemical Group (Vinachem) divested its capital.

Thanks to its pioneering investment in technology and equipment upgrades, Hanoi Battery Joint Stock Company currently produces over 200 million batteries annually. The company’s product portfolio has become more diverse, and labor productivity has increased manifold. Hanoi Battery’s products are now exported to India, Central Asia, Africa, Eastern Europe, and South America. Additionally, the over-60-year-old company also enjoys a significant market share in Laos and Cambodia.