Mr. Le Phuoc Vu’s company spent trillion to buy stocks

According to the annual session in mid-March, Hoa Sen Group (stock code HSG) will submit to shareholders advocating the acquisition of 50-100 million shares. The Board of Directors can also depend on the market change up to 186 million shares, or 30% of shares have been issued at the ceiling level prescribed in the Enterprise Law.

The Board of Directors said that this is a backup measure to protect shareholders’ interests when the stock market is complicated, affecting stock prices.

The lotus is expected to use a surplus of equity and profit after tax to make transactions. Assuming that according to the current market price (17,750 VND), Mr. Le Phuoc Vu’s company can spend 880-3,300 billion VND to buy stocks.

This acquisition policy was announced by Hoa Sen at the same time with the forecast of the Board of Directors of the complicated fluctuations of the steel sheet industry this year. In the business plan report, the company assesses very low domestic demand demand, while steel is redundant, so it must compete fiercely with businesses in the same industry.

“In the context of political power transfer in the US, the risk of trade war is huge. Therefore, corrugated iron and steel exports face many challenges, difficult to ensure a stable market share,” the Board of Directors, ” Lotus director said.

This business expects the business results of the financial year 2024-2025 backward compared to the same period. According to the most positive scenario, the company expects the same consumption output in the previous year. At that time, net revenue reached VND 38,000 billion and after tax of 500 billion, down about 3% compared to the previous year.

With a more cautious scenario, they expected revenue to fall by 11% to 35,000 billion dong and the after -tax interest lowered 22% to 400 billion dong.

Mr. Le Phuoc Vu’s company has recorded a net revenue of 10,221 billion dong and after a tax profit of 165 billion dong in the first 3 months of the year. On the stock market, HSG shares fluctuated in the area of ​​17,000-18,000 VND, not much fluctuations compared to the beginning of the year. However, compared to the highest price area in the past 12 months, the current level decreased by more than 30%.

At the annual meeting in 2022, Mr. Le Phuoc Vu forecasted the stock price to 100,000 VND, three times the price of that time. The basis of this expectation is the shift from production to the development of Hoa Sen Home – the distribution system of construction materials. Accordingly, the lotus from the steel supplier will become a partner of thousands of other suppliers. Mr. Vu said that if successfully implemented this system, the revenue of 5 or 10 billion USD a year is not a unrealistic figure.

In the upcoming meeting document, Hoa Sen leaders said the development of construction materials and furniture distribution continues to be the focus of the business. The company advocates the establishment of Hoa Sen Home Joint Stock Company to receive this distribution system. In the long term, if the situation is favorable, they will consider issuing shares to the public and listing lotus home.