Tycoon cuts losses on chicken farm, stops expanding pig farm

According to the documents of the 2023 Annual General Meeting of Shareholders (AGM) scheduled to take place at the end of June of Nova Consumer Group Corporation (NCG), this year, due to the instability and fluctuations of pig prices, to minimize capital risks, the company will not expand sow and pork farms, focusing on maximizing the capacity of the current rented farms to optimize costs.

The company will cut losses in the chicken farm segment by transferring the leased farms to new investors, expected to complete the transfer in the second quarter of 2023.

In the context of the domestic macro economy facing many challenges, unfavorable world economy, high inflation and risks of economic growth decline, the company decided to temporarily suspend investment projects to expand the farm.

The company continues to maintain its market share in the veterinary medicine segment, taking advantage of the growth momentum from 2022 in the animal feed segment to gain more market share from competitors in 2023. This is the company's core business in the agricultural sector.

Regarding the consumer segment, in the context of spending still affected by the dual impact of the pandemic and economic uncertainty, the company expects modest single-digit growth for the food and beverage segment.

In 2023, the company targets net revenue of VND 5,628 billion, after-tax profit of VND 16.8 billion, down 93% over the same period last year.

Businesses sell chicken farms at a loss. (Photo: DT)

Business News

The stock market has a number of other important events of listed companies.

* CII: Ho Chi Minh City Infrastructure Investment Joint Stock Company announced that Vietcombank has approved credit for CII's infrastructure projects to restructure the cash flow of the projects. The total credit limit is over VND9,340 billion for the two companies implementing the Hanoi Highway and BOT Trung Luong - My Thuan projects.

* FMC : According to the updated business results report for May, Sao Ta Food JSC recorded revenue of 10.9 million USD, down 44% over the same period. This is also the lowest monthly revenue since the beginning of 2022.

* YEG : The 2023 Annual General Meeting of Shareholders of Yeah1 Group Corporation approved the 2023 business plan, with revenue reaching VND 425 billion and expected after-tax profit of VND 30 billion, up 35.3% and 20.53% respectively compared to 2022.

* STG : Southern Logistics JSC announced documents for the 2023 Annual General Meeting of Shareholders with a revenue target of VND 3,180 billion and a record after-tax profit of VND 406 billion.

* VND : VNDirect Securities Corporation plans to submit to shareholders for approval to pay 2022 dividends in shares. If the proposal is approved, 2022 will be the first year that VND does not pay cash dividends to shareholders after 6 years, since 2016.

Transaction information

* CII: Ho Chi Minh City Infrastructure Investment Corporation announced the time to transfer all of its capital contributions at Saigon Water Infrastructure Corporation (SII). CII registered to sell all of the nearly 33 million SII shares it holds from June 6 to July 5. The number of shares expected to be transferred is equivalent to 50.62% of SII's capital.

* LCG : Mr. Nguyen Van Nghia, member of the Board of Directors of Lizen JSC, has just registered to sell 5 million LCG shares during the period of June 8 - July 7, to reduce his holding ratio from 7.71% to 5.1%.

* HHV : On May 31, Deo Ca Transport Infrastructure Investment JSC reported that Mr. Pham Dinh Thang is no longer a major shareholder due to the transfer of 3.5 million HHV shares to his wife, Ms. Tran Thi Ngoan.

VN-Index

At the end of the trading session on June 2, VN-Index increased by 1.15% to over 1,090 points, HNX-Index increased by 2.06 points (+0.92%) to 226.03 points, UPCoM-Index increased by 0.45 points (+0.54%) to 83.96 points.

According to SHS Securities, the market recovered immediately after a slight correction session, although this was the T+3 session of the explosive session. The market's upward momentum continued to be maintained well. The recovery session helped the market continue to consolidate its strength to continue the upward trend.

VDSC Securities believes that the market will continue to increase to test supply pressure around 1,080 points at the beginning of the next session. However, it is still necessary to temporarily pay attention to the risk of increased supply at this strong resistance zone.

If selling pressure does not increase sharply when the index approaches the 1,080-point resistance, VN-Index is likely to continue moving towards the next resistance zone of 1,090-1,100 points.

Meat prices drop sharply, tycoon sells pig farm at a loss The Golden Group Joint Stock Company (TGG) has just announced the transfer of the Hoa Binh Pig Farm project.

Source