NAM KIM STEEL (NKG) ACHIEVED RECORD SALES VOLUME IN Q1 2021, EXPORTS INCREASED SHARPLY FROM EUROPEAN AND US MARKETS

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Recently, Nam Kim Steel (NKG) (NKG) has also adopted the policy of receiving transfers from Dae Myung Chemical Co. Ltd. all 100% charter capital in Dae Myung Paper Vietnam Co., Ltd. According to NKG, the purpose of acquiring Dae Myung Paper Vietnam is to use the land for warehouses and steel pipe workshops as the approved plan in 2020.

Nam Kim Steel (NKG) has just announced production targets in March and the first quarter of 2021 with a good increase in momentum, especially exports. Total production in March reached 101.766 tons, of which galvanizing accounted for the most significant proportion with 44.320 tons, aluminum-zinc steel 23.635 tons, color coated steel 11.031 tons, and steel pipes reached 22.780 tons. Total monthly consumption reached 103.481 tons, with exports alone accounting for 62.422 tons, equivalent to more than 60% of the proportion.

Accumulated in the first 3 months of the year, the Company produced 244.301 tons, consuming 240.072 tons. Exports are at a record high of 151.992 tons, with the main recent markets including European countries and the US.

In 2021, the steel industry continues to receive many prospects. According to the Vietnam Steel Association, world steel demand increased 4.1% this year after recording a decrease of 2.4% the previous year, driven mainly by the recovery in developed markets.

Domestic demand is expected to increase by 8% thanks to active infrastructure investment, the recovery of the real estate market, the recovery of the manufacturing industry, and attracting foreign capital. Specifically, this year, domestic consumption of construction steel, pipe steel, and galvanized sheets is expected to increase by 9%, 8%, and 8%, respectively. Vietnam’s steel exports are also viewed more positively this year.

Accordingly, businesses in the industry simultaneously set optimistic plans for 2021. Particularly, NKG, the company plans to submit to shareholders a revenue plan of VND 16.000 billion, profit after tax of VND 600 billion; up 38% and 200% respectively over the previous year. The company also plans to pay a maximum dividend of 10% in cash or shares.

Recently, the Board of Directors has also approved the policy of receiving the transfer from Dae Myung Chemical Co. Ltd. 100% of charter capital in Dae Myung Paper Vietnam Co., Ltd. According to NKG, the purpose of acquiring Dae Myung Paper Vietnam is to use the land for warehouse and steel pipe workshops according to the approved plan in 2020.

In 2020, NKG achieved revenue of 11.560 billion dongs, a slight decrease, but profit after tax was 6,2 times higher, reaching 295 billion dongs. With the achieved results, the Board of Directors presented the final dividend of 2020 at the rate of 7% in shares. In addition, the Board of Directors presented a plan to award shares at the rate of 13%. The total dividend and bonus ratio is 20% in shares. Correspondingly, Ton Nam Kim will issue a maximum of 1 million shares under the Employee Options Program (ESOP), with no restriction on the right to transfer at the price of 10.000 VND/share, of which it is not distributed to the Chairman of the Board of Directors. Board of Directors and General Director. Currently, NKG shares are being traded for VND 24.250, up 152% from VND 16.000 in early 2021. The average bar in the last 30 days is 4,9 million shares/session.

ton nam kim

Sources Cafef.vn:https://cafef.vn/thep-nam-kim-nkg-dat-san-luong-ban-hang-ky-luc-trong-quy-1-2021-xuat-khau-tang-manh-nho-thi-truong-chau-au-va-my-20210409091642543.chn

Nam Kim Steel Joint Stock Company
Lot A1, Đ2 Street, Dong An 2 Industrial Park, Thu Dau Mot City, Binh Duong
T. (+84)274 3748 848 | F. (+84)274 3748 868
Email: info@namkimgroup.vn

Representative office
Room 802, 8th Floor, Ha Do Airport, 02 Hong Ha, Ward 02, Tan Binh District, Ho Chi Minh City
T. (+84)283 6204 829
Email: info@namkimgroup.vn