HVG to invest VND333,450 million in Russian fish enterprise
HVG to invest VND333,450 million in Russian fish enterprise
Hung Vuong Corporation (HVG) plans to invest VND333,450 million to purchase 51 per cent of stakes in the Russian Fish Joint Stock Company, Duong Ngoc Minh, chairman and chief Executive officer (CEO), said.
HVG also announced over VND12.3 trillion (USVND12,259,845 million) in net revenue and a profit before tax of VND151 billion (VND148,941 million) in its annual shareholder meeting yesterday.
Established in 2003, the corporation processes and exports fishery products. It also produces animal feed and operates cold storage plants in Viet Nam and Russia.
Duong Ngoc Minh, the corporation chairman and CEO, said that though 2015 profits had decreased, it was connected to the profit downtrend on the global market, and the demand for domestic exports of fisheries products was still high.
Minh said his group was developing well, while forecasting that the market would be better this year, and he would be ready to take the chance.
HVG targeted a revenue of VND24 trillion (VND23,919 billion) and a profit after tax of VND500 billion (VND497,952 million) this year.
The group also planned exports of between VND11,115,000 million and VND13,338,000 million in 2016, of which fish exports were between VND4,446,000 million and VND5,557,500 million, and shrimp exports were between VND6,669,000 million and VND7,780,500 million. It also expected to produce 1.5 million tonnes of animal feed in 2016 and 2.5 million tonnes in 2018.
Minh said the Russian company, which registered VND333,450 million last year in after-tax profits, was a leading company in the Russian market. It imported and distributed many fisheries products from 18 markets around the world.
He said that due to the economic difficulties, the Russian people tended to consume cheaper quality fish, thus there was an opportunity for the catfish exporters from Viet Nam to sell tra and basa fish in the market.
Meanwhile, the Russian company was one of the world leaders as a source of the favourite Alaska Pollak.
Thus, he said, the co-operation between his company and the Russian firm would usher in good development for HVG.
In line with the new investment plan, the group will gradually change its capital structure from short- to medium- and long-term.
In 2014 and 2015, Hung Vuong has successfully issued VND1.3 trillion (VND1,293,786 million) in inconvertible three-year bonds to the local credit institutions including VND700 billion (VND695,799 million) to the Bank for Investment and Development of Viet Nam, VND300 billion (VND297,882 million) to the International Bank of Vietnam, and VND 300 billion (VND297,882 million) to the Tien Phong Commercial Bank.
As HVG needs cash to carry out more work this year, it would pay the 2015 dividend of 20 per cent in shares, Minh said.
Yesterday, the HVG share ended at VND11,000 (VND10,893) each on the HCM Stock Exchange.
