2 years after the first "missed death" (2020), HAGL Agrico's HNG shares are again facing the risk of delisting. After 10 consecutive quarters of losses, what business breakthrough will appear in the last quarter of the year? Securities 1.1 billion HNG shares (HAGL Agrico) are at risk of delisting on HOSE Duc Hau • October 30, 2023 06:162 years after the first "missed death" (2020), HAGL's HNG shares Agrico again faces the risk of delisting. After 10 consecutive quarters of losses, what business breakthrough will appear in the last quarter of the year?
Hoang Anh Gia Lai International Agriculture Joint Stock Company (HM:HNG) - HAGL Agrico (Code HNG - HOSE) has just received the 10th consecutive quarter of loss although the loss has decreased greatly over the same period. But a loss is still a loss, it can't be helped!
HAGL Agrico's third quarter revenue decreased to 160 billion VND, in which key segments such as fruit sales and rubber latex sales all decreased sharply. As usual, the business situation below cost price continues to be the main reason leading to business losses.
In the third quarter, HNG reported a consolidated after-tax loss of VND 199 billion - down 52% YoY. However, the recorded figure is still higher than the loss of 112 billion and 135 billion of the previous two quarters.
Accumulated for 9 months, Chairman Tran Ba Duong's enterprise achieved a total revenue of 438 billion VND, negative after-tax loss of 446 billion VND, down 21% and 59% respectively compared to the same period last year. Accumulated losses increased to 7,450 billion.
With this result, although still far from the revenue target of 1,282 billion VND, compared to the target loss after tax of 2,316 billion, the results recorded after 3 quarters of HAGL Agrico are relatively positive.
The most concerning thing right now is the future of more than 1.1 billion HNG shares listed on HOSE. In the coming 4th quarter, even if this number only shows a loss, delisting on HOSE early next year will be completely possible.
HAGL Agrico has lost business in the last 4/5 years (except for an unexpected profit of nearly 21 billion VND in 2020). In 2019 alone, the company even had an after-tax loss of VND 2,444 billion. It was the "small pepper" profit in 2020 that helped HNG shares exit the exchange (avoiding the third consecutive year of losses).
That year, it took a sudden financial revenue of nearly 966 billion VND (945 billion from investment transfer) in the fourth quarter to help the company escape.
In the upcoming fourth quarter, HAGL Agrico needs to achieve a minimum profit of 446 billion VND to be eligible to keep its shares on HOSE. It is known that the last time the enterprise achieved a profit above this threshold was in the second quarter of 2017 (profit after tax of VND 1,003 billion). At that time, HNG was still in the arms of Mr. Doan Nguyen Duc and HAGL Group (Code HM:HAG).
As of September 30, 2023, the total assets of Chairman Tran Ba Duong's company reached 14,144 billion VND - an increase of 1,500 billion compared to the beginning of the year, of which the amount of cash was 16.5 billion VND. Liabilities increased from 9,635 billion to 11,245 billion VND (3.9 times more than equity), of which financial debt was more than 7,800 billion.
Large debt caused the company to spend up to 244 billion VND in interest expenses after 9 months - an increase of 34% over the same period.
HNG also has payable expenses (mostly interest expenses) at 1,166 billion VND - an increase of nearly 300 billion compared to the beginning of the year.
On the stock market, HNG shares ended October 27 at 3,610 VND/share - a decrease of 76% after 4 years.
See more: HAGL Agrico (HNG) suffered losses for the 11th consecutive quarter, owing HAGL more than 1,300 billion VND
