Media giant YeaH1 set for capital base growth, private offering

YeaH1 Group, a leading media and entertainment company in Vietnam, plans to conduct a private placement to issue 54.8 million shares at VND10,000 ($0.39) apiece this year, as revealed at the firm’s 2024 AGM held on Monday.

The proceeds from the offering, valued at VND548 billion ($21.6 million), will be used to contribute capital to joint ventures, establish subsidiaries/affiliates in new business areas, receive share transfers in the entertainment and media fields, augment capital to its subsidiaries/affiliates, and bolster working capital.

In addition, YeaH1 Group, listed on the Ho Chi Minh Stock Exchange (HoSE) as YEG, intends to issue 5.6 million shares under the employee stock ownership plan (ESOP) from undistributed profits. With the two issuance plans, its charter capital is projected to go up to VND2 trillion ($78.8 million).

In terms of business objectives for 2024, YeaH1 Group has proposed two plans aligned with different market scenarios. In an optimistic market setting, it aims for VND1.1 trillion ($43.3 million) in revenue, up 167% year-over-year, and VND105 billion ($4.14 million) in net profit, up 296%.

In case of less favorable market conditions, revenue is projected at VND800 billion ($31.52 million), a 94% year-over-year increase, with a profit of VND65 billion ($2.56 million), up 145%.

Responding to shareholders’ concerns regarding the ambitious revenue target, YeaH1 Group chairwoman Le Phuong Thao expressed confidence in the company’s ability to attract advertisers and achieve breakthroughs in the second half of this year, citing new TV shows and business ventures. She affirmed the company's commitment to a minimum revenue of VND800 billion, regardless of economic challenges this year.

This year, the corporation is collaborating with partners to produce TV shows, notably with the Ministry of Agriculture and Rural Development and TikTok Vietnam for a farmer-focused show.

Besides television, it is actively engaged in content production and publishing on social platforms. Furthermore, the company has diversified into new segments, including artist management and studio development. Its general director Ngo Thi Van Hanh expects that artist management will serve as a key revenue and commercial potential generator within YeaH1’s portfolio.

On the studio front, the firm is investing in a 3,000-square-meter film studio complex, aiming to produce high-quality content and offer the market a modern studio facility.

In the first quarter of 2024, YEG recorded VND73.5 billion ($2.9 million) in revenue, up 21% year-over-year, and a net profit of VND17 billion ($669,820), quadruple that from last year.

In 2023, the firm posted VND425 billion ($16.75 million) in revenue and VND30 billion ($1.18 million) in net profit, up 31% and 4% year-over-year, respectively. It decided not to pay dividends for 2023. Last year, YEG raised VND450 billion ($17.73 million) through a private offering, which has been used to contribute capital to subsidiaries, pay off debt, and add working capital.

YEG shares closed Monday at VND9,200 ($0.36) apiece.