The Hanoi Stock Exchange has approved Machinery Spare Parts No 1 Joint Stock Company (Futu 1)’s request to trade 7,079,853 shares on UpCOM under the code FT1.

The shares will be traded on September 27 at the reference price of VND21,700 (US$0.95) per share.

Futu 1 was established in 1986 and was formerly the No 1 Auto Parts Factory located in Chuong My District, Ha Noi. The company became a joint stock company in 2008, focusing on manufacturing, assembling and trading electronic and electrical appliances and parts for agricultural machines. Its main products include auto and motorbike spare parts and components, mechanical parts and agricultural machines.

The company has more than 1,000 workers and 10 main production lines supplying spare parts, components and motors for many companies such as Yamaha, Honda and Piagio.

The Vietnam Engine and Agricultural Machinery Corporation (VEAM) is currently the firm’s parent company, owning 55 per cent of Futu 1.

In 2016, Futu 1 earned revenue of VND808 billion, up 4.7 per cent from the previous year and made an after-tax profit exceeding VND53.3 billion, representing growth of 7 per cent. The dividend payout ratio was 46.6 per cent in 2016 and 50 per cent in 2015.

Futu 1 expects to reach VND830 billion in revenue this year with an estimated after-tax profit of VND40 billion, down 25 per cent from the previous year. — VNS