HSG targets Bt36 bn in revenue in 2016-17
VIETNAMESE steel maker Hoa Sen Group (HSG) targets revenues of 23 trillion dong (Bt36 billion) for the fiscal year 2016-17, it announced at its annual shareholders’ meeting in Ho Chi Minh City late last week.
At the meeting, the company also announced its target of an after-tax profit of 1.65 trillion dong for 2016-17. Total sales will be more than 1.57 million tonnes, it said.
For the 2015-16 fiscal year, HSG posted growth of 130 per cent in profit after tax. In detail, the company reported that it gained more than 1.5 trillion dong in profit after tax. Meanwhile, revenue increased by 25 per cent over the firm’s initial projection, reaching nearly 17.9 trillion dong.
Sales grew by 22 per cent, exceeding 1.2 million tonnes.
Last year, the company constructed many projects, including the Hoa Sen plant in the central province of Nghe An, |which will be put into operation this year with a capacity of 1.2 million tonnes per year.
The plan of expanding the Hoa Sen building-materials project in Ba Ria-Vung Tau was started in March last year and will be finished this month.
Last year also marked a turning point for HSG as it decided to pour money into the real-estate market by building Hoa Sen Tower in Quy Nhon, a city in the south-central province of Binh Dinh, and a trade centre in Yen Bai province.
At the meeting, HSG decided to pay a cash dividend of a maximum of 10 per cent per share.
It also said it would issue 3.5 million of shares at the price of 10,000 dong per share to its staff this year. After the issue, the total registered capital of HSG will increase to 3.47 trillion dong.
Chairman L Phuc Vu shared with the meeting that the company was restructuring and that HSG would set up joint stock companies in regions of Vietnam. HSG will be the mother company that holds at least 51 per cent of shares in the regional companies.
About the Ca Na Steel Plant, Vu said all procedures between HSG |and Ninh Thuan province had been completed and the company was waiting for the government’s decision.
He added that HSG had hired three consultant companies from India to analyse the feasibility of the project.
During the meeting, HSG received an award for being the best-managed company in Asia in the metals and mining |sector according to a 2016 poll of leading equity|analysts by Euromoney magazine.