Vinaconex's Northern Power Development 2 (ND2) net profit margin reaches 67%

Nedi 2 Power Investment and Development Joint Stock Company (Code: ND2) was the first member company of Vinaconex (Code: VCG) with main activities in the field of energy investment and development. The unit is holding and operating many hydropower projects in Lao Cai province and many provinces in the North.

Northern Power Investment and Development - Nedi 2 (ND2) reported a sharp increase in third quarter profit, with a net profit margin of up to 67% (Photo TL)

Recently, Nedi 2 announced its Q3/2024 financial statements with net revenue reaching 151.9 billion VND, up 4.5% over the same period. Cost of goods sold accounted for only 29 billion VND, gross profit reached 122.6 billion. Thus, Nedi 2's gross profit margin is up to 80%.

During the period, the company had to pay 12.5 billion VND for financial expenses, which is the interest on previously borrowed loans. This interest expense is even 4 times larger than the current business management cost and is also the largest expense that Nedi 2 has to pay.

After deducting all expenses and taxes, Nedi 2 still brought in 102 billion VND in profit, with a net profit margin of 67%. This means that for every 100 VND in revenue, Nedi 2 earned 67 VND in profit. Currently, Vinaconex (Code: VCG) holds a controlling stake of 51.1% in Nedi 2 and is the unit that benefits the most from this business result.

In the first 9 months of the year, Nedi 2 recorded net revenue of VND282.5 billion and profit after tax of VND138.1 billion, up 53% over the same period last year. This result is equivalent to completing 76% of the revenue target and 89% of the annual profit target.

Regarding capital structure, Nedi 2 currently has 763.8 billion VND in liabilities. Of which, short-term debt accounts for 179.7 billion VND, long-term debt accounts for 453.7 billion VND. During the period, the unit tended to reduce its debt when paying the principal of 200.9 billion but only borrowed an additional 73.8 billion VND. This is also the reason why interest expenses were reduced during the period.

Source: https://www.congluan.vn/lam-thuy-dien-lai-nhu-vinaconex-cong-ty-con-phat-trien-dien-mien-bac-2-nd2-bien-lai-rong-len-toi-67-post317027.html