Nam Kim Steel profit reaches only 44.3% of 2023 target

Although the business results of Nam Kim Steel, a major steelmaker in Vietnam, in 2023 were better than 2022, the company completed only 93% of its revenue plan and 44.3% of its profit target.

According to Nam Kim's newly released financial statement, its net revenue reached VND18,595 billion ($761.77 million) in 2023, down more than 19.4%.

Its profit before tax and after tax reached VND177.3 billion ($7.26 million) and VND117.4 billion ($4.8 million), respectively, better than last year.

On the balance sheet, the steel maker’s total assets on December 31, 2023 stood at VND12,235 billion ($501.22 million), down more than 9% from the beginning of the year.

SMC Trading Investment JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as SMC, has just registered to sell all 13.1 million Nam Kim shares, or a 4.98% stake, via order matching and throughput.

The trading period will take place from February 5 to March 4, 2024. If the transaction is made, SMC will leave Nam Kim after nearly seven years.

Experts see the case as one of SMC's initiatives to raise liquidity in the face of tough business conditions and large bad debt. In 2023, SMC made a loss of more than VND919.3 billion ($37.66 million), an increase from VND652 billion ($26.7 million) in 2022.

By the end of 2023, the company recorded over VND1,263.3 billion ($51.73 million) in bad debt from companies like Delta-Valley Binh Thuan Co., Ltd. (VND440.8 billion or $18.05 million), Da Lat Valley Real Estate Co., Ltd. (VND169.2 billion or $6.93 million), The Forest City Company Limited (VND131.5 billion or $5.38 million), and Hung Thinh INCONS JSC (VND63 billion or $2.8 million).

Nam Kim shares (HoSE: NKG) closed Thursday at VND24,000 ($0.98) apiece.