Duc Long Gia Lai's after-tax profit was more than 64 billion VND, 4 times higher than the same period last year and the highest quarterly profit ever thanks to divestment of a subsidiary.
Duc Long Gia Lai Group Joint Stock Company (stock code: DLG) has just announced its consolidated financial report for the third quarter of 2024 with net revenue of more than VND 220 billion, down 24% year-on-year. Revenue from BOT toll stations contributed VND 133 billion, while the sale of electronic components brought in more than VND 63 billion.
Gross profit decreased slightly compared to the same period last year, reaching nearly VND85 billion. However, thanks to a sharp decrease in cost of goods sold, gross profit margin improved by 8 percentage points compared to the same period last year, to approximately 39%.
Financial and sales expenses decreased sharply compared to the same period, down 16% to VND74 billion and 68% to VND876 million, respectively. Meanwhile, business management expenses increased sharply to VND126 billion, more than 3 times higher than the same period last year due to the company setting aside provisions for bad debts.
The company recorded a sharp increase in financial revenue, tripling the same period last year to VND180 billion. Of which, nearly VND130 billion came from divesting its subsidiary, Mass Noble, an electronic components manufacturing company registered in the Virgin Islands.
Previously in July, Duc Long Gia Lai announced that it would sell all 97.73% of its capital (equivalent to an investment of VND249 billion) it owned at Mass Noble. This company became a member of Duc Long Gia Lai in May 2015 in the form of a stock swap. Mass Noble plays an important role in Duc Long Gia Lai's business results, contributing 51% of total revenue last year.
After deducting expenses, Duc Long Gia Lai's after-tax profit was more than 64 billion VND, 4 times higher than the same period last year. This is the highest quarterly profit since the company was listed on the stock exchange.
In the first 9 months, the company earned VND815 billion in net revenue, a slight increase compared to the same period last year. Gross profit increased by approximately 19% over the same period, reaching VND238 billion. Gross profit margin was over 29%, up 4 percentage points over the same period. Profit before and after tax were VND145 billion and VND126 billion respectively, double the same period last year.
Duc Long Gia Lai aims to achieve VND1,400 billion in revenue and VND120 billion in after-tax profit this year. If achieved, the company will avoid delisting due to three consecutive years of losses. After the first three quarters of the year, the company has completed 58% of its revenue plan and exceeded its profit target by 5%.
As of the end of September 2024, the company's total assets were approximately VND 4,860 billion, a slight decrease compared to the beginning of the period. Short-term loan receivables accounted for VND 2,020 billion in the company's asset structure. Liabilities decreased from VND 4,524 billion at the beginning of the year to VND 4,216 billion, most of which were short-term items. Owner's equity reached VND 643 billion, accumulated loss was VND 2,565 billion.
According to the management, the main goal this year is to restructure strategic industries by focusing on areas with experience, strengths and good cash flow. The areas expected to grow well and invite cooperation are infrastructure, green energy, and resort hotels. On the contrary, the company will divest from ineffective investment industries.
Financially, the company expects to pay off all loans of over VND1,000 billion by the end of 2025 and accumulate funds to develop new projects.
Next year, Duc Long Gia Lai expects revenue to reach VND1,550 billion and profit to reach VND170 billion. The target for 2026 is revenue to reach VND1,700 billion and net profit to reach VND250 billion.
After announcing positive business results, DLG shares on the HoSE increased to 2,030 VND in the session on October 29 and closed with no sales. The number of shares successfully transferred skyrocketed to 3.8 million units (equivalent to nearly 7.8 billion VND), 4 times higher than the average matched volume of the last 10 sessions. The market capitalization accordingly reached 608 billion VND.
DLG shares are currently under warning and control. On October 2, HoSE warned of the possibility of DLG being forced to delist if the 2024 audited financial statements continue to have an exception opinion.
Source: https://baodautu.vn/duc-long-gia-lai-lai-dam-nho-thoai-von-cong-ty-con-d228689.html
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