Vocarimex Shareholders Meeting: SCIC will divest in the third quarter

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At the annual General Meeting of Shareholders of Vietnam Vegetable Oils Industry Corporation (Vocarimex, UPCoM: VOC) held on the morning of June 26, Ms. Tran Thi Hong Linh – Member of the Board of Directors of Vocarimex representing the capital of Dau Dau Corporation State Capital Investment (SCIC) revealed in the list of divestments, it is expected to withdraw 36% of Vocarimex’s capital in the third quarter.

In August 2019, SCIC used to auction all Vocairmex capital at a starting price of VND22,300 / share, 43% higher than the stock price at that time. The auction cannot take place because there are no investors participating. VOC’s current price is VND 14,300 / share.

The largest shareholder of Vocarimex is Kido Group (HoSE: KDC) holding 51% of the capital. At the annual General Meeting of Shareholders this year, Mr. Tran Le Nguyen, General Director of Kido said that he would merge member units such as Kido Foods, Tuong An, Vocarimex Accordingly, to implement the plan to consolidate Tuong An (HoSE: TAC), Kido will buy back the State capital in Vocarimex because this unit owns 26.55% of the capital.

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SCIC will divest Vocarimex in the third quarter. Photo: DH

The 2020 profit plan is similar to 2019

In 2019, world oil prices are complicated. The exchange rate of USD / VND has increased but it has been relatively stable, affecting the production and business activities of the Corporation due to the main imported raw materials. Besides, the cooking oil market still faces pressure on price competition.

Accordingly, the enterprise recorded a revenue of 2,547 billion VND, exceeding 6% of the plan and down 42%; EBT of 242 billion, exceeding 34% of the plan and down 7% compared to the previous year. However, Vocarimex has adjusted its business plan to the plan approved at the Annual General Meeting of Shareholders 2019.

Ms. Nguyen Thi Xuan Lieu, General Director said that from the beginning of the year until September 2019, oil price dropped continuously and the strongest point dropped in August. and oil-pressed agricultural products were also in good season, inventories in Indonesia and Malaysia increased. By January this year, oil prices increased again with the US-China agreement to reduce some taxes, inventories in Indonesia and Malaysia decreased due to increased exports. However, the Covid-19 epidemic broke out, all supply activities were interrupted, causing the price of oil to decrease, until May and June to tend to increase. Management understands the impacts affecting oil prices and can control appropriate business and production activities. However, with such abnormal oil price movements, it is not easy to complete a business plan.

The BOD submitted a 12% cash dividend plan for 2019, equivalent to VND 146 billion, which was advanced on June 2.

In 2020, the business plans revenue of 2,910 billion dong, up 14%; Profit before tax VND 243 billion, equivalent to that of the previous year.

Mr. Nguyen Hung Cuong, Deputy General Director of Information, Vocarimex in the first 5 months, net revenue is 1,100 billion dong, up 4%. Profit margin increased from 1.4% in 2019 to 2.7% in the first 5 months of the year thanks to management’s price forecast and well organized storage of input materials.

Regarding business orientation in 2020, businesses will focus on improving management capacity, labor productivity, building and developing markets in accordance with business characteristics. At the same time, Vocarimex strengthened the industrial channel sales system, penetrating deeply into the commercial cooking oil market; focus on businesses and units that use vegetable oil in production and business.

Ms. Lieu further shared that in case SCIC divests its capital into the market and if Kido Group buys it successfully, it will become Vocarimex’s major shareholder. Meanwhile, the next step will be to transform the business, evaluate production to plan for the future.

Ms. Lieu also asserted that if this happens, it is only in the direction to make Vocarimex grow stronger.

Source: ndh.vn