TNH Group JSC and Tam Duc Heart Hospital JSC are two of the rare hospitals listed on the stock exchange.
TNH’s Ambitious Expansion Plans Amid Capital Constraints
According to the consolidated financial statements for the second quarter of 2024, TNH Group JSC (code: TNH, HoSE) achieved a revenue of VND 130 billion, a 5% increase compared to the same period last year. The surge in cost of goods sold led to a 8% decrease in gross profit, amounting to VND 53.5 billion.
During this period, the company incurred VND 880 million in sales expenses, while there was no such expense in the previous year. TNH attributed this to the concentration of resources on completing the Vietnam Yen Hospital project, particularly on recruitment and staffing costs.
Additionally, the scarcity of certain medicines in the bidding process forced TNH Hospital to source from alternative suppliers, resulting in higher medicine prices compared to the winning bid.
Consequently, TNH reported a post-tax profit of nearly VND 39 billion, a 3% increase compared to the second quarter of 2023.
For the first six months of 2024, TNH recorded a revenue of VND 222 billion and a post-tax profit of VND 54 billion, representing a decrease of 3% and 13% respectively from the same period in 2023. These figures correspond to 41% and 35% completion of the revenue and profit plans, respectively.
TNH Hospital, formerly known as Thai Nguyen International Hospital
In the second quarter of 2024, TNH Hospital invested an additional VND 160 billion in the construction of Vietnam Yen Hospital in Bac Giang, TNH Lang Son Hospital, and the International Hospital. The total cost of these ongoing projects increased by 63% from the beginning of the year to VND 705 billion by the end of the second quarter of 2024.
TNH Hospital’s ambitious expansion plans into the northern provinces are challenged by capital constraints. Recently, the hospital has extended the deadline for borrowing from members of the Board of Directors, amounting to VND 92 billion. This loan was taken to repay bonds issued in 2020.
The lenders from the Board of Directors include: Mr. Hoang Tuyen, Chairman of the Board of Directors, with VND 35.6 billion; Mr. Le Xuan Tan with VND 11.4 billion; Mr. Nguyen Van Thuy with VND 35 billion; and Mr. Nguyen Xuan Don with VND 10 billion.
The new deadline for repayment is March 31, 2025. The company stated that they need time to complete the procedures for issuing shares according to the resolutions of the 2023 Annual General Meeting of Shareholders and to arrange for new capital to repay the debt as per the signed contract. This is the third time TNH has requested a postponement of the debt repayment to the leadership group, with the original terms remaining unchanged.
Tam Duc Reports Declining Profits but Maintains Consistent Dividend Payouts
Meanwhile, Tam Duc Heart Hospital JSC (code: TTD, UPCoM) recorded a revenue of over VND 189 billion in the second quarter of 2024, a slight increase of 2% compared to the same period last year.
After expenses, Tam Duc Heart Hospital reported a post-tax profit of VND 20 billion, a decrease of 13% from the previous year.
For the first six months of 2024, revenue increased by 12% to VND 367 billion compared to the same period last year. Despite the increase in revenue, post-tax profit decreased by 21%, amounting to nearly VND 34 billion.
For the year 2024, Tam Duc Heart Hospital set a business plan with a target total revenue of VND 700 billion and a post-tax profit of VND 82 billion. Thus, by the end of the second quarter, the company had achieved 52% of the revenue plan and 41% of the profit target for the year.
Despite the decline in financial performance, Tam Duc Heart Hospital has a tradition of paying high dividends. Since its listing in 2017, the cash dividend ratio has consistently remained above the 30% threshold.
In early August 2024, the company finalized the list of shareholders to receive the first installment of 2024 dividends in cash, with a ratio of 10%. This means that for every 1 share owned, shareholders will receive VND 1,000. For 2024, the company plans to distribute dividends at a rate of 33%.
With nearly 15.6 million shares currently in circulation, Tam Duc Heart Hospital is expected to pay out VND 15.6 billion for this dividend installment. The payment is scheduled for August 16, 2024.
Previously, in mid-May, the company paid the remaining dividend of 2023 with a ratio of 13%, completing the dividend plan for 2023 with a ratio of 33%.
