Digiworld reveals M&A failed; Song Hong sells off some companies; FPT Retail enters the electronics market.

FPT Shop has just simultaneously opened 10 electronics stores nationwide.

The new stores are relatively large, with an area of ​​over 200m2 per store. FPT Retail also has strategic partnerships with 30 major electronics and home appliance brands such as Samsung, LG, Casper, Toshiba, Xiaomi, Daikin, TCL, Aqua, Sharp, Midea, Hisense, etc., to distribute their products. The company plans to increase the total number of electronics stores to 50 locations in 2024.

FPT Retail's latest move comes after a restructuring of the FPT Shop chain and seems to favor the development of the Long Chau pharmacy chain. Expanding into the electronics sector also intensifies the competition between FPT Retail and Mobile World Group (MWG). These two retail companies have already been rivals in the technology (ICT) and pharmaceutical retail sectors. MWG and FRT are also competitors in the pharmaceutical field, with MWG owning the An Khang pharmacy chain and FRT developing the FPT Long Chau pharmacy chain...

The Board of Directors of Song Hong Corporation has agreed on a plan to transfer investment capital in several enterprises, including both listed and unlisted companies. The transfer will take place from August 1st to October 31st, 2024.

Specifically, SHG will transfer all 100,000 shares of Song Hong Shalumi Aluminum Group and 91 shares of Song Hong Construction Company through order matching on the stock exchange.

The company will also transfer its entire investment capital in unlisted companies through negotiated agreements. The transfer price will be agreed upon but will not be lower than the book value of the Corporation (after offsetting the provision for financial investment losses). This list includes Song Hong Civil and Infrastructure Construction Company, Song Hong Urban Consulting and Construction Company (formerly Song Hong Architectural and Urban Consulting Company), and Hanoi Song Hong Real Estate Company (formerly Hanoi Song Hong Real Estate Investment and Business Company). Currently, Song Hong Corporation has set aside provisions for losses on most of its investment capital in these companies.

Earlier this year, the Board of Directors of Song Hong Corporation also agreed to transfer all capital in a number of companies, including Song Hong Central Region, Song Hong Real Estate Investment, and Thao Nguyen Technology and Investment (formerly Song Hong Communication Technology).

This divestment is part of the corporate restructuring plan for the 2024-2025 period, which was approved by the extraordinary General Meeting of Shareholders of Song Hong Corporation in 2024 on February 17, 2024.

According to the company's leadership, after the completion of the state divestment, a corporate restructuring plan must be implemented to eliminate bad debts. Most subsidiaries and affiliated companies are currently operating at a loss and heavily indebted, making it difficult to recover funds after divestment.

The divestment is solely for the purpose of writing off the debts of those companies and does not affect the Corporation's financial statements.

During the 2024-2025 period, the Corporation will focus on divesting assets and definitively resolving accounts receivable/payable (if any), or dissolving/going bankrupt (if eligible) in cases where divestment is not possible; restructuring debt through debt-to-equity swaps; increasing charter capital to implement investment projects, mergers and acquisitions, and establishing new businesses; the parent company will focus on real estate investment and business, and will not directly act as a construction contractor;…

Song Hong Corporation will also negotiate with banks to release the machinery and equipment currently mortgaged to the banks for lease, while effectively utilizing the land at 70 An Duong to generate revenue to maintain operations.

In the near future, the company plans to increase its capital from VND 270 billion to approximately VND 770-820 billion in stages, in line with the restructuring schedule and the financial needs of the investment project. Song Hong Corporation stated that it needs approximately VND 200 billion to implement the Song Hong Tower multi-functional complex project; and approximately VND 300-350 billion to restructure its liabilities.

Digiworld reveals one failed M&A deal.

At a recent investor meeting, the leaders of Digiworld Corporation shared noteworthy information about the company's new business areas.

Digiworld aims for revenue of 6 trillion VND in the third quarter of 2024.

In the first half of 2024, the Vietmoney pawnshop chain incurred an average monthly loss of approximately 1 billion VND, primarily due to office expenses. Management believes Vietmoney will continue to record losses for the remainder of 2024. In previous announcements, Digiworld predicted that Vietmoney's contribution to profits would be negligible over the next two years.

Vietmoney's sales per store per month in the first half of 2024 (i.e., total loans issued) was VND 2 billion (a 20% increase compared to the same period). Of Vietmoney's 16 stores, 14 recorded slight profits at the store level, while the remaining 2 stores were still operating at a loss.

The management stated that Vietmoney could record corporate profit based on average monthly sales per store at VND 2.5 billion.

Information from the investor meeting also indicated that a potential M&A deal in the office equipment sector did not materialize, but there is a high probability of closing a potential deal in the consumer goods sector in 2025.

Regarding Achison's business performance, the company expects to generate 800 billion VND in revenue in 2024. The acquisition of 75% of Achison – a company specializing in the distribution of personal protective equipment and industrial equipment such as grinding wheels, cutting wheels, polishing machines, etc. – is Digiworld's most notable transaction in recent times.

Achison is also being closely watched by investors amidst strong growth in FDI into Vietnam. The construction of numerous factories by major global brands such as Lego, Pandora, and Samsung in Vietnam further reinforces expectations of growth in demand for personal protective equipment.

However, in the first half of 2024, Achison's sales were lower than management's expectations due to weaker-than-expected production. Achison established a branch in Hanoi, recording total revenue of VND 360 billion, with a net profit of VND 8 billion.

Previously, at its 2024 annual general meeting, Digiworld stated that the acquisition of Achison had helped the company reduce costs, and they set a revenue target of VND 1,000 billion for this segment in 2024, representing a 50% increase, and a net profit after tax of VND 50 billion. Weak demand from Europe and America has led to a decline in orders in Vietnam, and the revenue target for Achison has also had to be lowered.

Digiworld aims for revenue of VND 6,000 billion in Q3 2024 (an 11% increase year-on-year and a 20% increase compared to the previous quarter).

  Beta Media and Aeon Entertainment form a joint venture.

Aeon Entertainment (Japan) and Beta Media (Vietnam) agree to establish a joint venture.

This project operates under the Aeon Beta Cinema brand and aims to open more than 50 high-end cinema complexes by 2035. The first location is expected to launch in 2025. Although specific financial details have not been disclosed, industry observers estimate the total investment to be around 5 trillion VND (US$198.2 million).

Aeon Entertainment, a subsidiary of Japan's Aeon Group and the largest cinema operator in the domestic market with 96 locations, considers Vietnam a key growth market. Nobuyuki Fujiwara, president of Aeon Entertainment, cited Beta Media's local market knowledge and network as crucial factors in the partnership.

Meanwhile, Mr. Bui Quang Minh, Chairman of Beta Group, the parent company of Beta Media, also emphasized the potential for "breakthrough development opportunities" through the combination of Aeon's industry experience and Beta's deep understanding of the local area.

Beta Cinema, a Vietnamese cinema brand, is considered to have experienced significant growth recently. In fact, Beta Cinemas boasts one of the most promising franchise policies on the market. The company aims for a youthful, modern cinema concept, leading the mid-range market segment with prices that match standard equipment and spacious, modern facilities. Founded in 2014, by 2024 the brand had 20 cinema complexes nationwide.