Hoa Sen expects revenue growth of 104% in April

Wednesday, Jun 02, 2021 18:13

A worker in Hoa Sen's warehouse. — Photo hoasengroup.vn

A recent report released by Hoa Sen Group (HSG), a leading company in galvanised steel in the domestic market, showed that in April, its revenue is expected to increase more than 100 per cent over the same period last year.

The company estimated product consumption to reach 216,390 tonnes in April, resulting in a surge of 104 per cent year-on-year to VND4.55 trillion in revenue.

Its profit after tax is expected to rise 498 per cent compared to last year to VND538 billion.

In the first seven months of the fiscal year 2020 - 2021, from October 1, 2020 to April 30, 2021, Hoa Sen's product consumption is estimated at nearly 1.3 million tonnes, completing 72% of the company’s business plan.

During the same period, its revenue is forecasted to grow 68 per cent against last year to nearly VND24.5 trillion, completing 74% of the plan, leading to an increase of 368 per cent to over VND2.2 trillion in profit after tax.

That means the steel producer’s profit after tax in the first seven months of the fiscal year 2020 - 2021 has nearly doubled the amount of the whole financial year 2019 - 2020.

Hoa Sen owns 10 factories across the country, with a total designed capacity of more than two million tonnes per year and a distribution system with more than 536 retail stores nationwide.

The company said that the current export market is favourable for steel products, especially galvanised steel sheets due to the economic stimulus packages of countries to cope with the impact of the COVID-19 pandemic, leading to global rising demand for steel.

The steel maker also announced the payment of dividends for the fiscal year 2019 - 2020 in shares.

Accordingly, Hoa Sen will issue 44,462,521 new shares to pay a 10 per cent stock dividend. Shareholders owning 100 shares will receive 10 new shares. Total issuance value is over VND444.5 billion.

After paying dividends in shares, Hoa Sen's charter capital will increase to more than VND4.89 trillion.

The capital for issuing new shares comes from the accumulated undistributed profit after tax according to the company's audited consolidated financial statements for the fiscal year 2019 - 2020.

The company plans to finalise the list of shareholders on June 15 and complete the dividend payment in July.

In the stock market, the HSG shares, which are listed on the Ho Chi Minh Stock Exchange (HoSE), closed Wednesday’s trade at VND43,300 per share, down 0.46 per cent.

The share price jumped nearly 83 per cent since the beginning of the year thanks to higher steel price in the international market.

At the current price, the company’s market capitalisation is nearly VND19.3 trillion. — VNS

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