Thai Nguyen International Hospital (TNH) profit stagnates for 3 consecutive years

Thai Nguyen International Hospital (TNH) has just announced its 2023 business plan with expected revenue of VND470 billion and expected profit after tax of VND150 billion. Compared to the implementation in 2022, the planned revenue increased by about 1.5% and profit after tax increased by about 6.7%.

Regarding the dividend payment for 2022, Thai Nguyen International Hospital agreed at the extraordinary General Meeting of Shareholders in October 2022 to pay dividends in shares at a rate of 30%, issuing 25.9 million shares at a price of VND 20,000/share to existing shareholders at a ratio of 2:1. In addition, the company also issued an additional 2.5 million ESOP shares at a price of VND 10,000/share.

Thai Nguyen International Hospital has made a profit of 3 consecutive years, reducing leg pain for image 1. — Thai Nguyen International Hospital (TNH) profit remains flat, no growth for 3 consecutive years (Photo TL)

Thus, it can be seen that the dividend payment plan of Thai Nguyen International Hospital will not include cash dividends. The plan to issue shares in 2023 is expected to help the company reduce its debt burden but at the same time will increase other costs.

Regarding the business situation in 2022, the annual revenue of Thai Nguyen International Hospital reached 463.2 billion VND, an increase of about 12.3% compared to 2021. Of which, the cost of goods sold accounted for 252.7 billion VND, gross profit from sales and service provision reached 210.5 billion VND.

The rapid increase in cost of goods sold caused the company's gross profit to stagnate at VND210.5 billion despite revenue growth. During the period, financial revenue was insignificant, just over VND24 million.

During the period, most expenses decreased, of which financial expenses decreased from VND 42 billion to only VND 37.4 billion, all of which were interest expenses. Sales and administrative expenses went in the opposite direction, increasing from VND 22 billion to VND 27.4 billion. After deducting taxes and expenses, the remaining profit after corporate income tax was recorded at VND 140.6 billion, a slight decrease compared to 2021.

By the end of 2022, Thai Nguyen International Hospital's total assets were recorded at VND 1,394.1 billion, an increase of 8.4% compared to the beginning of the year. The increase mainly came from equity capital, increasing from VND 415 billion to VND 518.7 billion. The index of short-term loans and financial leases increased slightly from VND 228.7 billion to VND 258.6 billion, an increase of about 13.1%. Undistributed profit after tax was recorded at VND 402.1 billion.

Looking at the business situation of Thai Nguyen International Hospital in the past few years, it can be seen that in 2021 and 2022, the hospital's profits have almost stagnated and there has been no growth. Even the profit plan for 2023 has not changed, so if this plan is achieved, TNH can actually say that there has been no growth for 3 consecutive years from 2021 to 2023.

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