SAM Holdings profit decreased by 45%, still guaranteeing subsidiary's loan of 5 million USD

SAM Holdings guarantees $5 million loan for subsidiary

Recently, SAM Holdings JSC (Code SAM) has announced the provision of a payment guarantee letter for all debt obligations (including principal, interest and other debt obligations) of Sacom Wire and Cable JSC at the bank. The initial limit of this guarantee is 5 million USD, equivalent to 121.5 billion VND.

SAM Holdings' profit drops 45.7%, still guarantees a loan of 5 million USD for its subsidiary (Photo TL)

Currently, SAM Holdings owns 99.92% of shares in Sacom Wire and Cable. Therefore, it is quite understandable that SAM Holdings guarantees the loan for its subsidiary. However, this guarantee is given in the context of SAM's business activities showing clear signs of decline in recent times.

Escaped loss in Q3 thanks to financial activities only

Specifically, SAM Holdings' Q3 revenue recorded VND520.2 billion, down 4.7% year-on-year. Gross profit in the period reached VND36 billion, down 24.4%.

Financial revenue recorded 29.9 billion VND, down 57.7%. However, in return, financial expenses also decreased by 64.7%, down to only 20.9 billion VND. Sales and business management expenses also decreased, down to only 8.7 billion and 34.6 billion VND.

After deducting all taxes and fees, SAM's remaining after-tax profit reached 7.6 billion VND, down 33% compared to the same period. It can be seen that if it were not for the financial revenue of nearly 30 billion VND, SAM would almost certainly have suffered a loss in the third quarter.

SAM's accumulated revenue in the first 9 months of the year reached VND 1,451.9 billion, down 7.7%. Profit after tax reached VND 24.8 billion, down 45.7%. Compared to the business plan set for 2023, SAM has only completed 60% of the revenue plan and 27.5% of the annual profit target.

In the trading session on December 1, 2023, SAM shares are being traded at VND 6,420/share.

Source: https://www.congluan.vn/sam-holdings-sam-loi-nhuan-sut-giam-45-van-bao-lanh-cong-ty-con-vay-no-5-trieu-usd-post274677.html