Mr. Dao Huu Huyen's company has huge profits, deposits nearly 10,000 billion in the bank, stocks evaporate 13%

Duc Giang Chemical Group Joint Stock Company (code DGC), chaired by tycoon Dao Huu Huyen, has just announced its consolidated financial report for the second quarter of 2024 with net revenue reaching VND 2,505 billion, up 4% over the same period last year. Gross profit reached VND 983 billion, corresponding to a profit margin increase of 39%.

Although financial revenue in the period decreased by 9% to VND165 billion, financial expenses decreased significantly (36%) to VND16 billion. Selling expenses increased by 8% to VND117 billion, and business management expenses increased by 36% to VND52 billion.

As a result, Duc Giang Chemicals brought in VND 952 billion in pre-tax profit, a slight increase of nearly VND 3 billion compared to the same period last year. Profit after tax of the parent company's shareholders reached VND 842 billion, an increase of VND 1 billion compared to the second quarter of 2023. Thus, this is also the highest profit in the past 6 quarters of this enterprise.

In the first 6 months of the year, Duc Giang Chemicals' revenue reached nearly 4,900 billion VND; net profit was more than 1,500 billion VND, down 7% compared to the first 6 months of last year. Compared to the plan approved by the 2024 Annual General Meeting of Shareholders, the enterprise of tycoon Dao Huu Huyen achieved 48% of the revenue plan and 51% of the after-tax profit target for the whole year.

In the second quarter of 2024, Duc Giang Chemicals' after-tax profit was the highest in 6 quarters. Photo: DGC

At the end of the second quarter of 2024, the company's total assets reached VND15,345 billion, a slight decrease compared to the beginning of the year. Of which, more than VND10,000 billion was cash, mainly kept in the form of bank deposits. In 6 months, Duc Giang Chemicals earned more than VND330 billion in interest.

On the other side of the balance sheet, liabilities are nearly VND2,000 billion, down VND1,500 billion compared to the beginning of the year. Other short-term payables have also dropped sharply, from VND1,260 billion at the beginning of the year to just over VND10 billion. This is the 2023 dividend paid at the beginning of the year.

On the stock market, at the end of the session on July 22, DGC shares reached 114,000 VND/share, down 13% compared to mid-June 2024.

According to Tien Phong Securities Company (TPS), Duc Giang Chemicals has positive recovery prospects in 2024.

First, Duc Giang Chemicals expects to benefit from the wave of global technology investment thanks to its leading position in yellow phosphorus (P4) exports. Duc Giang Chemicals’ yellow phosphorus exports are forecast to increase sharply by the end of 2024, as new electric vehicle battery and chip factories in East Asia and North America diversify their yellow phosphorus suppliers in a China + 1 strategy to reduce dependence on China’s P4 sources.

The support factor from expansion projects will contribute significantly to Duc Giang Chemicals' revenue in the future. Accordingly, the Nghi Son Plastic Caustic Soda Plant project is expected to complete phase 1 in 2024-2025 and phase 2 in 2026 with a scale of 150,000 tons/year, equivalent to over VND 1,800 billion/year.

Mortgaging hundreds of millions of shares, Mr. Duc poured thousands of billions to "save" his subsidiary. By mortgaging more than a hundred million shares at Gia Lai Livestock Joint Stock Company, Hoang Anh Gia Lai hopes that the amount of more than a thousand billion VND borrowed from the bank will revive this subsidiary.

Source: https://vietnamnet.vn/dn-cua-ong-dao-huu-huyen-lai-dam-gui-ngan-hang-gan-10-000-ty-co-phieu-boc-hoi-13-2304752.html