VPBank Securities and Viet Cat Fund want to spend 1,700 billion VND to buy HAG shares

After-tax profit plan is 1,120 billion VND

This morning (April 8), Hoang Anh Gia Lai Joint Stock Company (HoSE: HAG) held the 2022 Annual General Meeting of Shareholders. One content of the report just announced is the plan to offer more than 161.9 million individual shares with price 10,500 VND/share.

The total amount expected to be collected is VND 1,700 billion expected to supplement working capital for subsidiaries including Hung Thang Loi Gia Lai Co., Ltd. (buying and selling agricultural materials, fruits, animal feed); Gia Lai Livestock Joint Stock Company, Le Pang Cattle Joint Stock Company (investing in fruit tree projects). In addition, the company will also use 500 billion dong to pay a part of the bond principal issued on December 30, 2016.

The Board of Directors presented to shareholders this year’s plan with net revenue of VND 4,820 billion, profit after tax of VND 1,120 billion, up 130% and 775% respectively compared to last year. If this plan is completed, this will be the highest profit of HAGL since 2015. This year, the company continues to not pay dividends.

Unit: billions dong

In terms of investment strategy, the group continues to focus on two main areas: fruit trees and pig farming. The planned area of ​​fruit trees is 10,000 ha, of which banana trees account for 7,000 ha. By the end of last year, HAGL had planted 5,000 hectares, this year will plant another 2,000 hectares.

As for the pig industry, as of December 31, 2021, the company has built 7 clusters of barns with a capacity of raising about 400,000 pigs per year, each cluster houses 2,400 sows and each head. Sows give birth to about 25 meat pigs per year. This year, the company will build 9 more clusters of barns to bring the total to 16 clusters, with a capacity of more than one million pigs per year.

The meeting will also dismiss Ms. Nguyen Thi Huyen from the position of Member of the Board of Directors from April 8 and elect an additional member of the Board of Directors for the 2020-2025 term.

Estimated profit in the first quarter of 248 billion VND

Mr. Doan Nguyen Duc, Chairman of HAGL Board of Directors, said that in the first quarter, sales reached about VND 882 billion, profit of VND 248 billion, gross profit margin reached 37%. This part of profit does not include the operating efficiency from Cattle Cattle Company because it has been consolidated since March 30. If Le Pang is included, the profit can reach 300-400 billion dong.

Talking about the business plan in 2022, Mr. Duc said that it was built on the price of pig 53,000 – 55,000 VND/kg, banana price 10,500 VND/kg. However, Mr. Duc predicts the pig price will reach 60,000 VND/kg in the next one month and bananas are selling at 14,000 VND/kg, sometimes selling 18,000 – 20,000 VND/kg.

HAGL plans to grow bananas to raise clean pigs, without antibiotics, without drugs to gain weight, without eating animal protein, creating different products in the market. To deploy, the company plans to issue nearly 162 million shares, earning 1,700 billion dong. Mr. Duc said HAGL will raise pigs and sell live pigs to slaughterhouses. The company will work with partners to distribute the product, it is expected that there will be about 5,000 stores to sell 1 million pigs. It is expected that in 2023, the sales of live pigs will be over VND 10,000 billion. Besides, the company also makes a factory to process pork into sausages, ham, pork… for export and domestic sale.

Also at the meeting, Mr. Duc said HAGL had found a partner, VPBank Securities and Viet Cat Fund in Hanoi to buy shares issued by the company, worth about VND 1,700 billion. Nova Consumer Group intends to negotiate to buy shares of HAGL but disagree, so the two sides could not come to an agreement.

At the end of the meeting, shareholders approved the appointment of Mr. Tran Van Dai as a member of the Board of Directors for the term 2020 – 2025. Mr. Dai is an agricultural engineer with over 30 years of experience in pig farming, used to work for CP Group. , the livestock segment of Hoa Phat.

Kong Chiem