On March 3, 2025, Hoa Sen Group (HSG) announced significant operational changes as it seeks to restructure its business strategy by ceasing operations at several locations and converting them to branches. This restructuring reflects the company's intent to improve operational efficiency and adapt to market conditions.
Among the notable changes is the termination of operations at the Mien Trung General Warehouse located at 7 Lien Chieu Industrial Zone, Hoa Hiep Bac Ward, Lien Chieu District, Da Nang City. This location will be officially converted to a branch to streamline operations under the new structure.
Similarly, the group has decided to discontinue the Binh Dinh General Warehouse business at A1.2 and A1.3, Nhon Hoa Industrial Zone, Nhon Hoa Ward, An Nhon Town, Binh Dinh Province. A new branch under this name has been established, led by Mr. Ly Quoc Viet, born in 1993, marking the beginning of fresh leadership to drive future growth.
The Ha Nam General Warehouse located at Thanh Liem Industrial Zone, Kien Khe Town, Thanh Liem District, Ha Nam Province, will also cease operations to make way for its branch replacement. Mr. Nguyen Van Tiep, born in 1985, has been appointed to oversee the new branch, reflecting the company’s focus on experienced leadership.
Adding to this transformation, HSG has announced the establishment of the Binh Duong General Warehouse branch at No. 9, Thong Nhat Avenue, Song Than II Industrial Park, Di An Ward, Di An City, Binh Duong Province. Mr. Nguyen Le Hoang Nam, born in 1989, will head this new venture. These appointments are part of HSG's strategy to reinforce its operational framework across the country.
Despite these proactive steps, HSG's stock has recently experienced two consecutive drops, currently trading at 18,900 VND per share, leading to concerns among investors about its future performance. The group's current market capitalization stands at approximately 11.736 trillion VND. Investors are wary as the group's plans for expansion and restructuring coincide with potential financial challenges.
To navigate these challenges, Hoa Sen Group is reportedly planning to implement substantial financial strategies, including the buyback of 50-100 million treasury shares, which could extend up to 180 million shares, equaling roughly 30% of the group's charter capital. This move aims to stabilize the company's share price and reinforce investor confidence, especially at a time when stock performance may weaken.
HSG's business outlook for the fiscal year 2024-2025 appears cautious. The group anticipates sustaining its consumption volume near previous figures at about 1.95 million tons. Revenue projections estimate around 38 trillion VND, translating to estimated profits after taxes of 500 billion VND, reflecting about a 3% downturn as the company faces competitive market dynamics.
Should market conditions deteriorate, projections suggest more worrying figures, with revenues potentially dropping by 11% to around 35 trillion VND and after-tax profits falling by 22% to 400 billion VND. This scenario highlights the delicate balance HSG must maintain as it seeks to reposition itself for sustainable future growth.
Overall, the operational changes being implemented by Hoa Sen Group, coupled with its ambitious share buyback plan and cautious financial projections for the upcoming fiscal year, indicate the company's commitment to adapting to market conditions. Stakeholders will be keeping a close eye on these developments as the group navigates this period of transformation.