The reason why HAG stock of "boss" Duc is making waves on November 12

HAG's current market price is VND 11,200/share, still down 23% compared to the most recent peak set at the end of May 2024 (VND 14,500/share).

On November 12, HAG of Hoang Anh Gia Lai Group suddenly increased to the ceiling price, with liquidity of more than 26 million shares in the midst of a fiery market.

HAG's current market price is VND 11,200/share, still down 23% compared to the most recent peak set at the end of May 2024 (VND 14,500/share).

Regarding Hoang Anh Gia Lai, the unit has just announced the resolution of the Board of Directors approving the operational strategy for the period 2024 - 2030.

Firstly, the company will focus on large corporate customers and international traders; catching up with the trend of information explosion and globalization. Secondly, it will effectively control operations and costs, minimizing risks during operations.

Bau Duc's (Chairman of the Board of Directors Doan Nguyen Duc) enterprise will deploy an agricultural digitalization program, applying a work management system to manage departments and projects in the office block and subsidiaries from November 2.

Mr. Doan Nguyen Duc's HAG shares hit the ceiling on November 12.

According to the recently announced Q3/2024 financial statements, HAGL recorded net revenue in the period of VND 1,432 billion, down 24%. Specifically, fruit revenue decreased by 12% to VND 880 billion, pork sales revenue dropped by 52% to VND 234 billion,...

Although revenue decreased, the company's gross profit margin increased sharply from 27% to 43% with gross profit recorded at VND609 billion. In addition, interest expenses improved, decreasing by VND55 billion to VND144 billion.

Therefore, Chairman Doan Nguyen Duc's company still recorded an 8% increase in after-tax profit to VND351 billion, of which the parent company's after-tax profit was nearly VND332 billion.

After 9 months, Mr. Duc's business brought in revenue of 4,198 billion VND, down 17% but net profit reached 851 billion VND, up 20%. On average, Mr. Duc's business earned more than 3 billion VND per day. Accumulated loss decreased from 1,669 billion VND to 626 billion VND.

In 2024, Hoang Anh Gia Lai set a record revenue target of VND 7,750 billion and after-tax profit of VND 1,320 billion. Thus, the company has currently achieved 54% and 64% of the plan, respectively.

As of September 30, Hoang Anh Gia Lai's assets were VND22,492 billion, an increase of VND1,589 billion compared to the beginning of the year, mainly due to the increase in long-term receivables in the investment cooperation contract worth VND1,021 billion (an increase of VND878 billion). Notably, the company only had VND114 million in cash, accounting for 0.05% of total assets.

Liabilities are VND 13,532 billion, of which, loans are VND 7,313 billion, down VND 556 billion after 9 months. At the 2024 Annual General Meeting of Shareholders, when asked if the profit plan includes debt cancellation, HAGL's leaders affirmed that it does not. Therefore, Mr. Duc and HAGL can completely expect this additional surprise element if they convince BIDV bondholders to cancel interest on the current bond lot with outstanding debt of more than VND 4,500 billion.

Mr. Duc once shared that the company is in the process of negotiating with bondholders to erase overdue interest payments, similar to how Eximbank erased HAGL's debt in 2023. However, the negotiation process may last several years and the decision to erase interest belongs to BIDV.