Haxaco's after-tax profit is 8 times higher than the same period last year.

Hang Xanh Auto Service Joint Stock Company (Haxaco, stock code: HAX) has just announced its financial report for the second quarter of 2024 with a series of positive indicators compared to the same period. Specifically, net revenue reached approximately VND 1,123 billion and gross profit reached more than VND 96 billion, up 41% and 71% respectively over the same period. Gross profit margin for this period reached 8.5%.

In the second quarter, Haxaco’s selling and administrative expenses both increased compared to the same period last year. Specifically, selling expenses increased by 32.6% to VND49.2 billion, and administrative expenses increased by 54.8% to VND22.6 billion. In contrast, financial expenses decreased sharply by nearly half, to about VND5 billion.

After deducting all expenses, Haxaco reported pre-tax profit of VND28.4 billion and after-tax profit of VND22 billion, respectively 6.3 times and nearly 8 times higher than the same period last year.

In the first half of the year, Haxaco recorded revenue of VND2,160 billion, up 21% over the same period. Of this, VND1,882 billion came from vehicle trading, the remaining VND264 billion came from repair services and spare parts sales.

Haxaco's half-year gross profit was approximately VND192 billion, while the same period last year it was just over VND133 billion. The gross profit margin for the first half of the year was 8.9%, up 1.5 percentage points compared to the first 6 months of last year. The company reported pre-tax profit of VND69.3 billion and post-tax profit of VND53.7 billion after deducting expenses, nearly 7 times and 8.6 times higher, respectively, than the same period last year.

In the explanatory document sent to the Ho Chi Minh City Stock Exchange, the parent company's financial report showed that key indicators showed negative growth because the automobile business, especially the luxury car segment, is in the process of recovery and is not yet stable. Car manufacturers are having to compete fiercely through deep discount policies and large incentives to stimulate consumer demand. However, the consolidated financial report still recorded strong profit growth thanks to the subsidiaries operating effectively, expanding and developing stable business.

Haxaco reported a sharp increase in after-tax profit in the second quarter of 2024.

This year, Haxaco aims to achieve a consolidated pre-tax profit of 4 times higher than that achieved in 2023, reaching VND200 billion. According to the Board of Directors, to implement this plan, the Company will proactively propose flexible plans on competition, prices, and discount policies to maintain market share. Thus, in the first half of the year, the Company has completed 34.6% of the profit plan.

According to the management board, this year, the company will focus on controlling financial leverage , strengthening risk management and planning for possible scenarios. In addition, Haxaco's management board said that this year it will continue to expand its vehicle business and research to diversify its product portfolio.

In an analysis report earlier this year, SSI Research expected Haxaco's sales to increase more strongly in 2024, with lower interest expenses due to reduced current inventories and the subsidiaries ( car dealerships distributing the MG and VinFast brands) starting to make a profit. The analysis team gave an expected profit of VND96 billion.

“We assess that the market will still be difficult in the first half of 2024 due to weak consumer demand and buyers waiting for new car models, but overall in 2024 the market will see a recovery in both quantity and value (thanks to the economic recovery in the second half of the year, new car models launched, the shortage of chips for cars being resolved, as well as more attractive lending interest rates compared to 2023),” SSI Research wrote.

As of the end of June, Haxaco had total assets of VND1,995 billion, a slight decrease of VND11 billion compared to the beginning of the period. The company's liabilities decreased from VND842 billion to VND770.6 billion. Short-term debt contributed an overwhelming proportion of VND770 billion. The largest item was short-term loans and financial leasing debt with approximately VND608 billion.

The company currently has equity of VND1,225 billion. Undistributed profit after tax is about VND33 billion.

On the stock exchange, HAX shares are currently at VND15,950, up 34% from the beginning of the year price of VND11,910. The average trading volume in the last 10 sessions is more than 1.1 million shares. The company's market capitalization is about VND1,714 billion.