VIMID aims to raise VND 538.1 billion from shareholders to repay loans.

Vietnam Machinery Investment and Development Joint Stock Company (VIMID, ticker VVS – HoSE) could increase its capital to VND 430.5 billion if it successfully issues more than 21.5 million shares to existing shareholders.

VIMID has approved the details of its share offering plan to existing shareholders at a ratio of 100%, meaning that shareholders owning 1 share are entitled to purchase 1 additional new share at a price of VND 25,000 per share. This is expected to be implemented in 2026, after approval from the State Securities Commission.

VIMID's purpose in raising capital is to repay bank loans. Source: VIMID

With 21.5 million shares outstanding, VIMID is estimated to issue more than 21.5 million additional shares to raise VND 538.1 billion. Of this amount, the company will use the entire proceeds to repay bank loans, with repayment scheduled for 2026.

Therefore, if the issuance is successful, the charter capital is expected to increase from VND 215.25 billion to VND 430.5 billion.

It is known that, as of March 31, 2026, VIMID only possessed VND 53.29 billion in cash and cash equivalents, but its total outstanding debt amounted to VND 642.7 billion, equivalent to 78.5% of its total equity.

In terms of business performance, in the first quarter of 2026, VIMID recorded revenue of VND 2,750.55 billion, an increase of 142.1% compared to the same period last year; after-tax profit reached VND 166.48 billion, an increase of 538.8% compared to the same period last year. The gross profit margin improved from 5.9% to 8.3%.

During the period, with increased revenue and improved gross profit margins, VIMID recorded a 245.2% increase in gross profit compared to the same period last year, equivalent to an increase of VND 163.13 billion, reaching VND 229.66 billion.

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Furthermore, during the same period, financial revenue increased by 238.4% year-on-year, equivalent to an increase of VND 76.81 billion, reaching VND 109.03 billion; financial expenses increased by 119.6%, equivalent to an increase of VND 35.58 billion, reaching VND 65.32 billion; selling and administrative expenses increased by 79.8%, equivalent to an increase of VND 28.86 billion, reaching VND 65.04 billion; and other activities showed negligible fluctuations.

Thus, despite facing pressure from increased financial, sales, and administrative costs, VIMID's net profit still increased by 538.8%, reaching VND 166.48 billion, mainly due to a sharp increase in gross profit and a significant increase in financial revenue.

VIMID further explained that the increase in financial revenue was mainly due to an increase in exchange rate gains of VND 17.37 billion to VND 56.08 billion; and an increase in interest on deposits and bonds from VND 14.84 billion to VND 52.95 billion.

In 2026, VIMID aims for net revenue of VND 9,500 billion and after-tax profit of VND 368 billion.

Thus, ending the first quarter of 2026 with after-tax profit reaching VND 166.48 billion, VIMID has completed 45.2% of its 2026 plan.

In terms of asset size, as of March 31, 2026, VIMID's total assets increased by 33.3% compared to the beginning of the year, equivalent to an increase of VND 1,705.4 billion, reaching VND 6,821.4 billion. Of this, the main assets recorded were VND 4,833.8 billion in short-term receivables, accounting for 70.86% of total assets; VND 1,788.2 billion in inventory, accounting for 26.21% of total assets; and other items accounting for an insignificant proportion.

In the first quarter of 2026, asset fluctuations were mainly due to a 130.6% increase in inventory compared to the beginning of the year, equivalent to an increase of VND 1,012.7 billion, reaching VND 1,788.2 billion; short-term receivables increased by 15.3% compared to the beginning of the year, equivalent to an increase of VND 642.1 billion, reaching VND 4,833.8 billion…

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It is known that as of March 31, 2026, VIMID had three major shareholders: Mr. Nguyen Vu Tru, Chairman of the Board of Directors, owning 44.77% of the charter capital; Ms. Nguyen Thi Thu Huyen, Vice Chairman of the Board of Directors, owning 10.34% of the charter capital; and M&A Holdings Vietnam Joint Stock Company, owning 8.36% of the charter capital; and the remaining 36.53% of the charter capital belonged to minority shareholders owning less than 5% of the charter capital.

Regarding the stock, after a strong surge at the beginning of 2026, from March 13th to May 14th, VVS shares reversed course and fell by 31.2%, from 160,500 VND to 110,400 VND per share, and the stock's liquidity showed signs of a sharp decline.

Source: https://baodautu.vn/vimid-muon-huy-dong-5381-ty-dong-tu-co-dong-de-tra-no-vay-d596170.html