DIC Corp (DIG) bond outstanding balance may hit a peak of 3,000 billion VND again

DIC Corp issues additional VND 2,100 billion in bonds

At the end of 2022, DIC Corp (Code DIG) bought back bonds before maturity. After several quarters of ineffective business, DIC Corp had to issue a new batch of bonds worth VND 2,100 billion to raise money to implement new projects.

Specifically, DIC Corp has approved a plan to issue up to VND 2,100 billion in private bonds in 2023. This is a non-convertible bond lot, without warrants and guaranteed by a payment guarantee from a credit institution. The expected issuance period will be from the fourth quarter of 2023 to the end of 2024.

Dig Corp's bond could hit 3,000 billion dong in the near future. — DIC Corp's (DIG) outstanding bonds are likely to climb to VND3,000 billion again (Photo TL)

According to DIC Corp's announcement, the purpose of the issuance is to raise money to carry out three major projects including: Long Tan Urban Tourism Area project; A5 Apartment project in Chi Linh Central Area, Vung Tau City; Cap Saint Jacques Complex project.

DIC Corp's outstanding bond balance has long been a topic of interest to investors. At the beginning of 2022, DIC Corp recorded a huge total outstanding bond balance of up to VND 3,387.2 billion. After fluctuations in the corporate bond market, DIC Corp repurchased bonds, reducing the outstanding bond balance at the end of the third quarter of 2023 to only VND 889 billion.

If the above plan to issue 2,100 billion VND in bonds is successfully implemented, DIC Corp's outstanding bond balance could once again increase to nearly 3,000 billion VND.

Only completed 10% of the year's business target

DIC Corp's business activities have continuously recorded a decline due to the impact of the sluggish real estate market. Revenue in the third quarter of 2023 most recently reached VND 235.2 billion, down about 44.5% over the same period. The company recorded a gross profit of VND 66.9 billion, down 41% over the same period. The corresponding gross profit margin remained at 28.4%.

During the period, financial revenue was recorded at VND10.8 billion, down 27.6%. At the same time, financial expenses also decreased by 2/3, down to VND11.6 billion. Sales expenses and business management expenses both decreased, recorded at VND46.6 billion.

After deducting all expenses, DIC Corp's profit after tax was 12.1 billion VND, an improvement over the same period. However, it should be noted that the company escaped losses partly thanks to a sharp cut in payable expenses. Business activities are still being affected by the market slump as revenue has dropped sharply compared to the same period.

DIC Corp's accumulated revenue in the first 9 months of the year reached 593.7 billion VND, down 60.9% compared to last year. Profit after tax decreased 31%, down to only 97.7 billion VND. Compared to the business target set at the beginning of the year, DIC Corp has only completed 10% of the annual profit plan.

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