Minh Phu Seafood Group Joint Stock Company announced the issuance of over 1 million ESOP shares to employees at a price of VND 10,000, equivalent to 60% of the market price on the UPCoM exchange.
According to a recent announcement, the management of Minh Phu Seafood Group Joint Stock Company (stock code: MPC) stated that it will soon issue over 1 million shares under an employee stock option program.
The issuance volume is equivalent to 0.26% of the total outstanding shares. The issuance price is 10,000 VND, which is approximately 60% of the current market price on the stock exchange (16,800 VND).
The capital raised from the issuance, expected to exceed VND 10.5 billion, will be used to increase the company's charter capital, meet business needs, and supplement working capital.
The shares are expected to be issued in the third or fourth quarter of 2024, after the State Securities Commission receives all the necessary reporting documents. These shares will be subject to a 5-year transfer restriction from the completion of the issuance.
The management stated that the purpose of the issuance is to enhance the roles, responsibilities, and rights of employees. In addition, it aims to align employee interests with the interests of the company community, increasing motivation and productivity. The issuance also aims to attract talent and retain capable management personnel.
The allocation ratio for Group 1 (comprising the General Director, Deputy General Director, Director, Board Secretary, and General Director's Assistant) is 81.2% (corresponding to 853,000 shares). Of these, General Director Mr. Le Van Quang purchased the most shares, totaling 187,200 shares (corresponding to 17.8%). Following Mr. Quang is Ms. Chu Thi Binh, Chairwoman of the Board of Directors, who purchased 141,200 shares (corresponding to 13.4%). The remaining 198,000 shares will be distributed among the other four groups.
On the stock exchange, MPC shares have fallen 11% from their year-to-date high of 18,900 VND to 16,800 VND. The average trading volume over the last 10 sessions is over 86,300 shares. Market capitalization reached over 6,718 billion VND.
Regarding business performance, for the first half of the year, Minh Phu recorded net revenue of over VND 6,488 billion, a 45% increase compared to the same period last year. Gross profit for the first half of the year reached VND 639 billion, a 41% increase compared to the same period last year. The gross profit margin for the first half of the year was 9.8%, showing only a negligible difference compared to the first six months of last year. The company reported a pre-tax profit of VND 65.8 billion and an after- tax profit of VND 45.7 billion after deducting expenses, while in the same period last year it incurred losses of VND 33.9 billion and VND 88.1 billion respectively.
At its 2024 Annual General Meeting, Minh Phu set a target of 70,000 tons of production this year, generating revenue of VND 18,568.7 billion. Pre-tax and after-tax profits are projected at VND 1,385.2 billion and VND 1,265.7 billion respectively. This marks the third time in the past five years that the company has set a pre-tax profit target exceeding VND 1 trillion.
After six months, Minh Phu has achieved 34.9% of its revenue target. However, the company has only completed 4.7% and 3.6% of its pre-tax and after-tax profit targets, respectively.
According to the company's management, achieving a trillion-VND profit target in 2024 faces numerous challenges from economic fluctuations . Specifically, the company recognizes that high inflation could continue to reduce demand for seafood and increase the price of raw materials for farming and processing. The company has chosen a strategy of product diversification, focusing on deep processing to create value-added products and maintain the quality of raw materials to address these challenges.
The second issue addressed by Minh Phu's management was the energy price crisis and transportation costs. Accordingly, the company stated that it will monitor the market and adjust its business plan flexibly, expanding into Asian countries to reduce transportation costs and seek niche markets, as well as increasing its capacity to serve the domestic market. Specifically, the company stated that it will soon focus heavily on the domestic market with the goal of increasing the proportion of domestic revenue from the current 1% to 5-10%.
As of the end of Q2/2024, Minh Phu's total assets reached VND 11,198 billion, an increase of VND 990 billion compared to the same period last year. The company has approximately VND 5,697 billion in liabilities, the majority of which are short-term. According to the financial report, Minh Phu currently has equity of nearly VND 5,502 billion. Undistributed after-tax profit reached VND 816 billion.
Source: https://baodautu.vn/minh-phu-phat-hanh-1-trieu-co-phieu-esop-d223602.html
Comment (0)