Thong Nhat leaf steel was reduced in turnover of 44% in the first quarter of the year, partly due to the US tightening tariffs, the export market fluctuated.
The first quarter financial statements of Thong Nhat Leaf Steel Joint Stock Company (TNS) showed that the revenue decreased by 44% to about 450 billion dong. The Board of Directors said that the market in the first 3 months of the year undergo continuous fluctuations and affected by the US tightening tariffs, causing escalating trade tensions.
However, this business still earns nearly 9 billion dong, up more than half compared to the first quarter of 2024. The Board of Directors explained that they searched for new customers and maintained the amount of existing customers, looking for a reasonable source of goods. The company also implemented solutions to reduce costs, improve business efficiency to reduce capital 45%, raise gross profits by 12% over the same period.
In addition, interest expenses decreased by 48% and sales costs, business management also reduced sharply, helping to increase profit after tax.
This year, TNS passed the production and processing plan of 190,000 tons of steel, slipping nearly 28% compared to 2024. Accordingly, they set a target of 20 billion dong after tax, equivalent to more than 40% over the same period. After the first quarter of the year, the company completed nearly 44% of the plan.
The Board of Directors said that the increase of commercial defense policies, technical barriers, and shipping issues globally this year will significantly affect steel exports.
Thong Nhat leaf steel is a manufacturer specializing in cold rolled leaf steel and after -rolling products for both domestic and export. From the continuous losses of many quarters, this business has started to profit steadily from the second half of 2023 to the present. However, by the end of March, the company still has more than 113 billion dong of accumulated losses.
TNS shares closed the session of April 18, increasing by 12.5% to 4,500 dong per unit, this level is still nearly 20% lower than the beginning of the year. This stock code is in limited trading, only buying and selling every Friday.