The possibility of earning trillions of dong in profit for three consecutive years.

Hoang Anh Gia Lai Joint Stock Company (HAGL, ticker HAG), chaired by Mr. Doan Nguyen Duc (Chairman Duc), reported a net profit after tax of nearly VND 351 billion in the third quarter, an 8% increase compared to the same period last year, despite a 24% decrease in consolidated revenue to VND 1,432 billion.

For the first nine months of the year, net revenue decreased by 17% to VND 4,194 billion, while after-tax profit increased by 20% to VND 851 billion. Accumulated losses were reduced to only VND 626 billion.

HAG is highly likely to reach the trillion-VND profit mark for the third consecutive year, nearing the elimination of its accumulated losses. This is the goal that Chairman Duc wants to achieve by the end of this year.

In 2024, HAGL aims for revenue of VND 7,750 billion, a 20% increase compared to 2023, and after-tax profit of VND 1,320 billion, a 26% decrease.

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Hoang Anh Gia Lai is chaired by Mr. Duc. Photo: HAG

Regarding business details in Q3, the "2 crops, 1 animal" model – growing bananas and durians and raising pigs fed on bananas – continued to drive growth for HAG. Durian was considered highly profitable. Chairman Duc once shared that the selling price was very high, yielding a 40% profit on a 1% investment. The fruit segment had the highest profit margin in Q3, reaching nearly 52%, meaning that for every 2 dong spent on fruit, HAG earned 1 dong in profit.

Specifically, net revenue from fruit reached VND 880 billion, a 12% decrease compared to the same period last year; revenue from pork sales decreased by more than 50% to VND 234 billion. Gross profit margin increased thanks to reduced financial costs, from VND 232 billion in the same period last year to VND 165 billion. Increased financial revenue contributed to a significant increase in HAG's profits.

Does this bear the mark of tycoon Nguyen Duc Thuy?

By the end of the third quarter, HAG's assets increased by nearly VND 1,590 billion, reaching over VND 22,490 billion, while liabilities decreased slightly to VND 13,532 billion. Total short-term and long-term borrowings amounted to over VND 7,313 billion, a decrease of approximately VND 555 billion compared to the beginning of the year.

HAG has short-term loans exceeding VND 1,540 billion from Loc Phat Vietnam Commercial Joint Stock Bank (LPBank), chaired by Mr. Nguyen Duc Thuy, an increase from VND 750 billion at the beginning of the year.

HAGL has long-term loans exceeding 86 billion VND from LPBank, whereas at the beginning of the year there were no outstanding long-term debts. In March 2024, LPBank and HAGL signed a financing agreement worth 5,000 billion VND.

In recent years, HAG has eased its difficulties after selling its agricultural segment (HAGL Agrico - HNG) to Thaco , owned by billionaire Tran Ba ​​Duong, generating a large sum of money to repay debts and attract capital from the LPBank and Thaiholdings groups. HAG has actively written off debt and benefited from its expanding durian orchards and rising selling prices.

At the 2024 Annual General Meeting of Shareholders, Mr. Doan Nguyen Duc stated that if HAG could eliminate its accumulated losses, many funds would invest. With a profit target of VND 1,320 billion in 2024, HAGL is not yet able to eliminate its accumulated losses. Mr. Duc expects HAG to achieve a profit of VND 2,000 billion per year in the coming years.

Currently, HAGL is facing many difficulties, including using short-term capital to finance long-term assets, and negative cash flow from operations and investments.

At the end of September, HAGL announced a delay in paying over 4,500 billion VND in principal and interest on bonds due to insufficient funds collected from HAGL Agrico's debt (with a three-party debt repayment schedule already agreed upon) and the inability to liquidate some non-performing assets.

In its first-half review report, HAG was found by auditors to have violated several commitments under bond contracts and to have failed to pay principal and interest on due bond loans. According to the auditing firm, there are material uncertainties that could lead to substantial doubt about the group's ability to continue as a going concern.

In 2023, HAG liquidated many assets such as Hoang Anh Gia Lai Hotel and HAGL University Medical Center Hospital. HAG received interest rate reductions from Eximbank, which helped boost profits dramatically.

At the close of trading on October 18, HAG shares fell by 200 dong, to 10,600 dong per share.

After overcoming billion-dollar debt, Chairman Duc's business reports highest profit in a decade . Mr. Doan Nguyen Duc's (Chairman Duc) business recorded its highest profit in the past 12 years thanks to interest rate reductions, asset sales, and soaring income from the fruit tree segment – ​​a sector the HAGL owner is betting on for the coming period.