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Wednesday, September 28, 2022

An Cuong Wood sets ambitious revenue, profit targets this year

The Saigon Times

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HCMC – Shareholders of An Cuong Wood Working JSC (ACG) have approved a business plan for this year with the company’s revenue and after-tax profit targets set at over VND4.2 trillion and VND550.1 billion, rising 28.8% and 21.9% over 2021, respectively.

At its annual shareholders’ meeting on June 6, ACG’s board assessed the plan as feasible as its performance in the first five months of the year was positive and expected the company could reach or even exceed the full-year target in the rest of the year without events that may cause an enormous impact, such as the Covid-19 pandemic in 2021.

In the first half of last year, An Cuong made over VND1.7 trillion in revenue and VND237.5 billion in after-tax profit, up 5.8% and 43.1% over the same period in 2020, respectively. However, in the second half, due to the impact of the pandemic, the company’s revenue and after-tax profit plunged.

In 2021, the company’s consolidated revenue reached nearly VND3.3 trillion, down 12.3% year-on-year.

By cutting costs and focusing on orders with high profits, An Cuong’s consolidated after-tax profit was VND451 billion last year, down 8.3% against 2020.

The company reported positive performance in the first quarter of this year. As the pandemic has been brought under control and the Government has come up with solutions to help the economy recover, the demand for An Cuong’s products has risen again, and the company posted the respective rises of 8.7% and 18.7% in revenue and after-tax profit.

An Cuong maintained its growth in April and May, at over 20%.

As for the business strategy, ACG will remain consistent with its core business activities, enhance R&D, ceaselessly improve the prestige and brand of the company and its product and service quality, increase the local market share in the high-end and middle-end wood and industrial wood material segments, and expand the export markets with a focus on developed markets.

This year, ACG will improve its operation processes at the parent companies and subsidiaries. It will apply digital transformation in its activities to enhance its operational effectiveness and save costs.

Since 2021, the company has enhanced its financial investment activities and has seen positive results. The compound annual growth rates of its revenue and profit hit 51.6% and 58.9% from 2017-2021, respectively.

This year, the company will safely boost investment and M&A activities to support its core business activities and improve the effectiveness of capital use. Its profit from financial investment activities is expected to increase this year and surge in 2023-2024.

As for the 2021 dividend, ACG approved a plan to pay dividends at 80%. Of which, the company has paid a share dividend of 50% and a cash dividend of 5%. It will continue paying a 20% cash dividend this month.

On May 31, the Hochiminh Stock Exchange received ACG’s files to list 135.8 million shares.

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