Long Hậu sets to divest from Sài Gòn - Hiệp Phước Port

Monday, Jun 10, 2024 10:04

Long Hậu Industrial Park in Long An Province. — Photo mekongasean.vn

After a poor performance in the first quarter of 2024, Long Hậu Corporation is now looking to sell its stake in Sài Gòn – Hiệp Phước Port JSC.

Long Hậu has approved a plan to divest its capital from Sài Gòn – Hiệp Phước Port. The company has tasked its CEO Trần Hồng Sơn with hiring an independent entity with the necessary expertise to evaluate the company's capital contribution and then submit a specific divestment proposal.

As of March 31, Long Hậu held 80,000 shares in Sài Gòn – Hiệp Phước Port, equivalent to an investment value of VNĐ80 billion (US$3.1 million).

In the first quarter of the year, the company reported revenue of VNĐ76.25 billion, a 34.1 per cent decrease year-on-year. Its profit after tax was VNĐ31.45 billion, down 32.3 per cent year-on-year. However, the gross profit margin improved from 50.5 per cent to 53.3 per cent.

The main reason for the decrease in Long Hậu's profit was the significant decline in revenue, as other activities saw negligible fluctuations.

Long Hậu also explained that the significant decline in revenue was primarily due to a drop in revenue from land leasing for ready-built workshops. The revenue decreased from VNĐ53.9 billion in the previous year to only VNĐ0.17 billion.

For the full year of 2024, the company has set a business target of a total revenue of VNĐ743.7 billion and an expected profit after tax of VNĐ131.46 billion. By completing the first quarter of 2024 with a profit of VNĐ31.45 billion, its has achieved 23.9 per cent of the planned profit. — VNS

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