Agriculture major HAGL looks to consolidate position in 2023

By Trang Nguyen
Sun, April 30, 2023 | 7:00 am GMT+7

Hoang Anh Gia Lai JSC (HAGL) is taking a defensive approach to consolidate its current position and avoid overreaching, said the agriculture corporation's chairman Doan Nguyen Duc.

Duc made the announcement at HAGL's 2023 annual general meeting of shareholders on Friday, where the firm approved a revenue plan of VND5.12 trillion ($218.19 million) and after-tax profit of VND1.13 trillion ($48.15 million) for 2023, a slight increase compared to 2022.

The company said the plan is based on the implementation of a policy to maintain production and business scale no lower than in 2022, in the context of complicated developments in the domestic and global economies.

Banana trees are tended to by Hoang Anh Gia Lai workers. Photo courtesy of the company.

Banana trees are tended to by Hoang Anh Gia Lai workers. Photo courtesy of the company.

In the first three months of this year, the company's estimated net revenue reached VND1.83 trillion ($77.81 million), with post-tax profit of nearly VND308 billion ($13.12 million).

Shareholders approved the election of Nguyen Chi Thang, director of Khan Xay One Member Co., Ltd to HAGL's board of directors. The company's board of directors currently includes chairman Doan Nguyen Duc and members Vo Truong Son, Vo Thi My Hanh, Tran Van Dai, and Nguyen Chi Thang.

The board of directors also presented a plan to issue shares under the Employee Stock Ownership Plan (ESOP) with a volume of 20 million and an issuing price of VND7,500 ($0.32) to mobilize up to VND150 billion ($6.39 million).

Duc said the ESOP would not negatively impact current shareholders, but instead bring employees together. If employees are determined to improve productivity, the stock price will increase, and shareholders will benefit, he explained.

Before the meeting, HAGL announced that its recent private placement had not been completed as fluctuating stock prices had discouraged investors.

According to the previous plan, HAGL would offer nearly 162 million shares at VND10,500 ($0.45) per share, raising nearly VND1.7 trillion ($72.45 million) that HAGL could use to supplement capital for subsidiaries and pay off part of bond principals.

HAGL chairman Duc said the corporation has not intended to conduct such a private placement again because the market is unfavorable. Therefore, the company has temporarily halted the expansion of its pig farm and banana plantations.

He emphasized the need for caution in 2023 due to market difficulties.

Regarding shareholders' concerns about the investment in HAGL Agrico (HNG), general director Vo Truong Son affirmed that HAGL only holds about 9% of its chartered capital. In the worst case, if HNG shares are delisted, the company can negotiate with partners to sell them.

HAGL reported an after-tax profit of VND1.180 trillion ($50.32 million) in 2022, an almost six-fold increase year-on-year and a record high since 2015. This positive figure was supported by a full-year 2021 provision of more than VND1.56 trillion ($66.57 million).

In 2022, the corporation's net revenue hit VND5.08 trillion ($216.7 million), nearly double that of the previous year. Of this, fruit and pork sales reached VND3.82 trillion ($162.86 million), equal to 75% of the total.

The Ho Chi Minh Stock Exchange announced on October 11, 2022 a change in the status of HAG from “controlled” to “warning” because its after-tax profit in 2021 was only VND203.3 billion ($8.42 million) while undistributed after-tax profits as of December 31, 2021 were a negative VND4.47 trillion ($185 million).

Hoang Anh Gia Lai, listed on the Ho Chi Minh Stock Exchange as HAG, closed the Friday trading session at VND7,620 ($0.32).

Comments (0)
  • Read More
Thai IP developer Amata eyes clean energy cooperation with northern Vietnam province

Thai IP developer Amata eyes clean energy cooperation with northern Vietnam province

Amata Group of Thailand on Wednesday recommended the northern province of Quang Ninh foster cooperation in clean energy development in the time to come.

Investing - Wed, December 18, 2024 | 4:54 pm GMT+7

Czech's Sev.en Global Investments to make Europe's largest energy investment in Vietnam

Czech's Sev.en Global Investments to make Europe's largest energy investment in Vietnam

Czech-based Sev.en Global Investments, a multi-sector business, will expand its footprint to Asia, with Vietnam as a key market, the firm announced Wednesday.

Energy - Wed, December 18, 2024 | 3:43 pm GMT+7

Vietnam's Mekong Delta has immense opportunities for herbal-based medicine development: exec

Vietnam's Mekong Delta has immense opportunities for herbal-based medicine development: exec

The government should prioritize planning for designated growing areas and support product promotion to advance the development of products derived from medicinal herbs, said Pham Thi Xuan Huong, general director of OPC Pharmaceutical JSC.

Companies - Wed, December 18, 2024 | 2:15 pm GMT+7

Petrovietnam seeks WB support in offshore wind energy

Petrovietnam seeks WB support in offshore wind energy

State-owned Petrovietnam has called on the World Bank to provide support, including capital, to help with green energy projects, especially offshore wind power.

Energy - Wed, December 18, 2024 | 1:36 pm GMT+7

Masan High-Tech Materials exits its downstream business H.C. Starck

Masan High-Tech Materials exits its downstream business H.C. Starck

Vietnam's Masan High-Tech Materials on Wednesday announced the successful closing of the sale of 100% of H.C. Starck Holding (Germany) GmbH to Mitsubishi Materials Corporation Group.

Companies - Wed, December 18, 2024 | 1:24 pm GMT+7

New stock trading system KRX must come on stream in 2025: regulator

New stock trading system KRX must come on stream in 2025: regulator

The State Securities Commission (SSC) of Vietnam has demanded stock exchanges and related entities to launch the new stock trading system KRX in 2025.

Finance - Wed, December 18, 2024 | 11:40 am GMT+7

Hong Kong-invested battery maker GPPD raises Vietnam investment to $35 mln

Hong Kong-invested battery maker GPPD raises Vietnam investment to $35 mln

Singapore-incorporated GPPD Pte. Ltd., a subsidiary of Hong Kong-based Gold Peak Technology Group Limited, has increased its investment in Vietnam’s southern province of Binh Phuoc to $34.6 million.

Industries - Wed, December 18, 2024 | 11:17 am GMT+7

Vietnam interest rate unlikely to fall further: experts

Vietnam interest rate unlikely to fall further: experts

Interest rates in Vietnam are unlikely to decrease further and may even rise slightly in the near future, according to Pham The Anh, chief economist at the Vietnam Economic and Strategy Research Center (VESS).

Economy - Wed, December 18, 2024 | 10:04 am GMT+7

Vietnam an important partner of Guangdong-Hong Kong-Macao Greater Bay area: Sunwah Group chairman

Vietnam an important partner of Guangdong-Hong Kong-Macao Greater Bay area: Sunwah Group chairman

Through Hong Kong, an international financial center, Vietnamese businesses can more easily and effectively access the Guangdong-Hong Kong-Macao Greater Bay, says Sunwah Group chairman Jonathan Choi.

Economy - Wed, December 18, 2024 | 8:17 am GMT+7

Hanoi plans to start work on metro line 2 next year

Hanoi plans to start work on metro line 2 next year

Hanoi is set to start the construction of a section of its metro line 2 next year at a cost of VND35.58 trillion ($1.45 billion).

Infrastructure - Tue, December 17, 2024 | 9:15 pm GMT+7

Bamboo Capital highlights role of businesses in advancing Vietnam’s circular economy

Bamboo Capital highlights role of businesses in advancing Vietnam’s circular economy

Dr. Hoang Trung Thanh, a senior leader of Vietnam's conglomerate Bamboo Capital Group, emphasized the pivotal role of businesses in driving Vietnam’s green economy strategies during his speech at the recent Vietnam Circular Economy Forum 2024.

Bamboo Capital - Tue, December 17, 2024 | 8:15 pm GMT+7

F88 partners with MB to transform over 850 financial stores into bank transaction offices

F88 partners with MB to transform over 850 financial stores into bank transaction offices

Military Commercial Joint Stock Bank (MB) and leading consumer finance firm F88 on Monday officially signed a comprehensive cooperation agreement.

Companies - Tue, December 17, 2024 | 8:15 pm GMT+7

Vietnam’s e-commerce boom: a $5.8 bln opportunity by 2028

Vietnam’s e-commerce boom: a $5.8 bln opportunity by 2028

Vietnam’s business-to-consumer (B2C) e-commerce export value is estimated at VND145.2 trillion ($5.8 billion) by 2028, with micro, small and medium-sized enterprises (MSMEs) projected to contribute 25%.

Southeast Asia - Tue, December 17, 2024 | 7:32 pm GMT+7

Vietnam's retail giants to ensure sufficient supply, steady prices of Lunar New Year holiday goods

Vietnam's retail giants to ensure sufficient supply, steady prices of Lunar New Year holiday goods

Saigon Co.op has stockpiled more than 12,000 tons of essential goods traditionally consumed for the upcoming Lunar New Year (Tet) holiday in late January, or 30-50% higher than normal.

Southeast Asia - Tue, December 17, 2024 | 7:28 pm GMT+7

Indonesia offers tax incentive to hybrid car makers

Indonesia offers tax incentive to hybrid car makers

Indonesia will offer a sales tax incentive on Government-borne Luxury Goods (PPnBM DTP) of 3% for hybrid cars from next year.

Southeast Asia - Tue, December 17, 2024 | 7:21 pm GMT+7

Indonesia ready to establish bullion banks

Indonesia ready to establish bullion banks

Indonesia is ready to set up bullion banks after developing its capability to produce gold bars domestically, according to Minister of State-Owned Enterprises (SOEs) Erick Thohir.

Southeast Asia - Tue, December 17, 2024 | 7:19 pm GMT+7