Tuesday, August 11 2020

VietNamNews

Đức Giang chairman regrets listing on Ha Noi exchange

Update: July, 25/2020 - 07:51

 

Workers of Đức Giang Chemical Group JSC (DGC) pack products in the Hà Nội-based factory. The company specialises in washing powder production and is wel-known for its Đức Giang-branded washing powder. — Photo the courtesy of Đức Giang

HÀ NỘI — Moving its listing from the Hà Nội Stock Exchange (HNX) to the Hồ Chí Minh Stock Exchange (HOSE) would help Đức Giang Chemical Group (DGC) increase its trading liquidity, according to its chairman.

“Listing here (HoSE) would help Đức Giang increase trading liquidity, thus attracting more capital investment from funds. Some have expressed their intention to buy 20-25 per cent of Đức Giang” said Đào Hữu Huyền, Chairman of DGC.

“Our decision of listing shares on the HNX in the beginning was wrong as Đức Giang was qualified enough to list on HOSE at the time. Now we have to follow hundreds of procedures for the move,” Huyền said at a conference held early this week in HCM City.

Đức Giang Chemical Group JSC, formerly known as Đức Giang Chemical Company, is a State-owned enterprise under the Việt Nam General Department of Chemicals, established in 1963.

It specialises in washing powder production and is well-known for its Đức Giang-branded washing powder.

In August 2014, the company registered its shares on the HNX with a volume of 33.5 million shares. The stock closed the first session at VNĐ18,740 per share, now they cost some VNĐ40,000 per share.

It has filed for listing on the HOSE with a registered volume of more than 129 million shares, from July 28 at the reference price on the first trading day of VNĐ39,700 per share.

Profit forecast

Đức Giang forecast revenue of more than VNĐ1.6 trillion (US469 million) in the third quarter, and after-tax profit of VNĐ210 billion.

The company plans to spend VNĐ50 billion for the site clearance of the Apatit-Field 25 Mining Project in the northern province of Lào Cai and complete all mining licences in August. The project is expected to be exploited from September. The company will also spend VNĐ116 billion for site clearance of the Đức Giang Nghi Sơn project in the central province of Thanh Hoá, which is expected to break ground in October.

In the first half of 2020, the company's net revenue exceeded VNĐ3 trillion, up 24 per cent year-on-year. Pre-tax profit reached VNĐ690 billion, up 56 per cent compared to the first half of 2019.

During the first half this year, revenue from financial activities doubled to nearly VNĐ60 billion. Selling and administrative expenses increased sharply by 55 per cent and 33 per cent.

Post-tax profit increased sharply from VNĐ280 billion to VNĐ444 billion in the first six months, up by nearly 60 per cent year-on-year.

In 2020, Đức Giang plans to achieve revenue of VNĐ6.08 trillion, up 20 per cent compared to 2019. 

According to its chairman, after 2021, the group will call for investment in the second phase of the Nghi Sơn project.

The Nghi Sơn project, set to be completed in 2026, is only the first stage in the group's 10-year vision, said the chairman, adding that the group was taking the first steps to apply to mine in the Central Highlands.

Đức Giang needs an estimated VNĐ10 trillion for its investment plan. Currently, the company has about VNĐ1.5 trillion in bank deposits. It is expected to issue shares worth VNĐ2.5 trillion for shareholders and individual investors. Accumulated profit for the next five years is expected to be more than VNĐ4 trillion. It will borrow the other VNĐ2 trillion from banks. — VNS

 

Send Us Your Comments:

See also: