Haxaco, officially known as Hang Xanh Auto Service Joint Stock Company, reported revenue of approximately 1,988 billion VND in the first half of the year, down 8% compared to the same period last year. Car sales contributed nearly 87% of total revenue, with the remainder coming from repair services and parts sales.
After deducting costs of goods sold, interest expenses, selling expenses, and administrative expenses, Haxaco recorded a net loss of over 3 billion VND. However, thanks to income from the disposal of fixed assets and support from manufacturers, the company reported an after-tax profit of nearly 27 billion VND, half of what it earned in the first half of last year.
In a document sent to the Ho Chi Minh City Stock Exchange (HOSE), Haxaco Chairman Do Tien Dung said the non-luxury car segment showed signs of improvement and helped maintain stable revenue compared to the same period last year. However, the luxury car segment continues to struggle and hasn't shown a clear recovery in quarter II. Competitive pricing pressures from rivals, coupled with increased costs (interest and operating expenses) from expansion, have eroded profits.
Haxaco has set a pre-tax profit target of 260 billion VND for this year, slightly higher than last year. After the first six months, the company has achieved about 15% of this target.
Haxaco was the first official distributor of Mercedes-Benz and currently holds a major market share for the brand in Vietnam. In addition to Mercedes-Benz, the company also distributes MG cars (a formerly British automaker now owned by a Chinese company).
In a late June analysis, Mirae Asset Securities (Vietnam) projected Haxaco's revenue and after-tax profit for this year to reach 6,378 billion VND and 271 billion VND respectively, representing increases of 16% and 33% year-on-year. The analysts estimated a 12% decrease in Mercedes-Benz sales volume, while MG sales are projected to increase by 66%.
Haxaco's shareholder structure has seen recent shifts. The Finnish investment fund PYN Elite Fund (Non-Ucits) announced this weekend that it has sold a total of 6.6 million shares, reducing its ownership from 10.7% to 3.93% and losing its status as a major shareholder. Earlier, the Cayman Islands-based AFC VF Limited reported selling nearly half a million shares, reducing its stake to 4.64% and also relinquishing its position as a major shareholder.
On the stock market, HAX shares closed at the end of the week at 14,100 VND, down 4% from the reference price. The company's market capitalization is currently around 1,500 billion VND.
Phuong Dong
