Nam Kim Group Profits Again After The Second Quarter of 2023
Steel NewsDate: 07-08-2023 by: Nhu Quynh
Recently, Nam Kim Group announced its latest financial report for the second quarter of 2023. Accordingly, the profit after tax in the first 6 months of the year reached 76,2 billion dong. This is also the first quarter of profit after losing business in the previous quarters.
In the second quarter of 2023, Nam Kim Group recorded net revenue of 5,499 billion dong, down 23.6% year-on-year. The cost of goods sold also decreased by 20.6% to 5,004 billion dong, so gross profit decreased by 44.5% to 496 billion dong.
Financial revenue for Nam Kim Group decreased by 53.7% to 50,5 billion dong. The company's expenses in the last quarter also decreased, in which selling expenses decreased by 60% to 214 billion dong.
Nam Kim's leadership also said that 2023 would be a year of many challenges and not really favorable for growth when domestic market demand is still weak. Countries also strengthen trade protectionist policies to protect the production sources of domestic enterprises, negatively affecting Nam Kim Group's export activities. However, the most difficult period has passed when the business activities of enterprises have had a positive trend.
In the second quarter of 2023, Nam Kim's profit after tax reached 125,4 billion dong, down 38% over the same period last year. This is also the first quarter to be profitable again after reporting losses in previous quarters. In terms of business orientation in 2023, Nam Kim Group sets a business target of 20,000 billion dongs in revenue and an expected profit before tax of 400 billion dongs. Thus, at the end of the year's first half, with what has been achieved, Nam Kim Group has completed 49% of the revenue target of 9,874 billion dong and 29% of the year's profit target of 76,2 billion dong. If this result remains unchanged, Nam Kim shares may be traded on margin again in the near future.
Nam Kim Group will also optimize the capacity of production lines to increase capacity to 1,2 million tons per year, thereby increasing productivity, reducing production costs per product unit, and increasing capacity enterprise competition.
By the end of the second quarter, Nam Kim's total assets reached 12,179 billion dongs, down 9.5% over the same period last year. The company has 950 billion dongs in cash and 134.5 billion in cash equivalents. At the end of the period, financial investment reached 396 billion dongs, investment in trading securities alone reached 120 billion dongs, almost all of which were bonds, and more than 9 billion dongs were invested in 1,174 BID shares.
In addition, Nam Kim Group also had 1,885.6 billion dongs of short-term receivables, up 24%. Inventories have decreased by 25.3 billion dongs to 5,385 billion dongs, and Nam Kim has set aside 156.4 billion dongs to reduce inventory prices.
On the stock market, after the trading session on July 28 closed, Nam Kim Group shares increased by 0.76% to 19,800 VND/stock, and trading volume reached more than 8,5 million units.