On April 27, Dabaco Vietnam Group Joint Stock Company (code DBC) organized the 2024 Annual General Meeting of Shareholders with the attendance of 294 shareholders and authorized persons, representing 53.59% of charter capital.
At the Congress, Dabaco shareholders approved the 2024 business plan with a revenue target (including internal revenue) of VND 25,380 billion, an increase of 14% compared to last year’s performance. The expected profit after tax target is 729.8 billion VND, 29 times higher than the result achieved in 2023.
This year, Dabaco is expected to deploy many capital mobilization plans, all of which have been approved by shareholders at the General Meeting, specifically:
Dabaco will issue 12 million shares under the employee selection program (ESOP) at a price of 10,000 VND/share to attract and reward employees with many contributions and long-term commitment to the company. Subjects of issuance are employees who have actively contributed to the company’s production and business activities. ESOP shares will be restricted from transfer for 12 months from the date of completion of the offering.
In addition, Dabaco will offer 80.67 million shares to existing shareholders at a price of 15,000 VND/share (ratio 3:1) to supplement capital for the company’s business activities. Shares offered to existing shareholders are not subject to transfer restrictions.
Expected implementation time is in 2024, after approval by the State Securities Commission. Dabaco is expected to mobilize more than 1,330 billion VND from the above two issuance options. The money was used to invest in Dabaco Vegetable Oil Company Limited to implement the Investment Project to build a Dabaco soybean oil pressing and refining plant.
After completing the above two issuance options, Dabaco will continue to privately offer 48.4 million shares (equivalent to 20% of the number of outstanding shares at the time of submission to the 2024 Annual General Meeting of Shareholders) to investors. strategy. Shares offered for private placement will be restricted from transfer for 3 years from the date of completion of the offering.
The expected offering price is not lower than 28,000 VND/share, corresponding to the minimum mobilized amount of 1,355 billion VND. This new capital source will be used by Dabaco to invest in a farm that produces and sells high-quality pig breeds and commercial pigs in Dong Thinh commune, Ngoc Lac district, Thanh Hoa province (more than 930 billion VND), Repayment of bank loans for the Dabaco Thanh Hoa high-tech pig breeding and commercial pig breeding area project in Thach Thanh district, Thanh Hoa province (nearly 425 billion VND).
Sharing at the Congress, Chairman of the Board of Directors Nguyen Nhu So affirmed that strategic shareholder Dabaco chose to be a foreign investor knowledgeable about the agricultural sector, able to promote existing strengths and supplement the group’s shortcomings. .
Mr. So also said that if the issuance to simple financial investors had been accepted, the offering could have been completed a long time ago. Dabaco’s money is not lacking and can be mobilized from many sources. “If it was just for money, I could still buy the shares offered this time. “Financial investors who don’t understand agriculture will have a lot of headaches. Strategic shareholders must bring the world’s progress to them.”Dabaco Chairman emphasized.
Vaccine progress is beyond expectations, commercial announcement is expected in the third quarter of 2024
Regarding the group’s business situation, Chairman of the Board of Directors Nguyen Nhu So also shared details about Dabaco’s activities in the past and the orientation for the coming period.
In the context of the stressful epidemic situation, Dabaco made a bold decision to import 10,000 breeding pigs in 2023. The price of each breeding pig is about 8,000 USD. “If we don’t boldly import pigs last year, Dabaco could be empty-handed this year”Dabaco Chairman affirmed.
Mr. So also said that the group just imported another batch of pig breeds and just flew back to Vietnam on April 24. Quality pig herds help significantly improve productivity for Dabaco. “In its 28-year history, the group has never had pig herd productivity as high as it is today, higher than the US, Canada and on par with Europe.”Dabaco Chairman shared.
Regarding current scale, Dabaco has over 50,000 sows and is aiming to reach 60,000 sows. The group partly operates under the “contract farm” model in association with farmers. After the livestock law is implemented, this model will shrink, forcing it to invest in concentrated farms. Mr. So said, Dabaco is striving to have land to build a farm to raise 58,000-60,000 sows by 2025, at the latest 2026.
Regarding the progress of the factories, Dabaco Chairman said that the group plans to inaugurate the phase 2 oil pressing factory around May next year. Meanwhile, the Vaccine Factory is striving to complete testing by May 20 and conduct a GMP assessment.
“It is expected that the commercial announcement will take place in the early third quarter of 2024. The results are beyond imagination”Chairman of Dabaco talked about the progress of the Vaccine Factory, which is of interest to many shareholders. “Previously on January 2, 2024, Dabaco successfully registered for management with the State. During the stressful epidemic period, in January 2024, the group decided to give internal injections and the protection was recorded up to This time it is 100%. 20 days ago, the group’s scientific and technical council proposed to vaccinate about 500 sows.”.
At the Congress, many questions from shareholders were answered by Chairman Nguyen Nhu So:
About Q1 profits, Q2 and year-end prospects?
Dabaco Chairman said that the 2024 plan was built carefully and meticulously. Production cost is only 48,000-51,000/kg. Construction selling price is only 52,000/kg. However, it will not be until March-April that the price will reach this target due to the impact of the epidemic last year. However, Mr. So also predicted that pig prices will remain high because supply has decreased more strongly than demand and it will take at least 18 months to overcome the supply shortage.
Regarding the results of the first quarter of 2024, Dabaco profit reached about 70 billion VND. Mr. So emphasized that the 2024 plan must definitely be completed. “Completion is normal, not to mention the factors that can contribute. From the second quarter, the business situation will be very good. Second quarter profit strives to reach about 250 billion”Dabaco Chairman shared.
About the African swine fever vaccine?
Chairman of Dabaco said that when the researcher invented it, the Vietnamese Ministry of Agriculture asked the US Department of Agriculture to just transfer it to us. Therefore, this technology will be exclusive to Vietnam.
Mr. So said, when successful, it will sell very expensive. “Dabaco’s vaccine is a 1-dose injection based on research. Dabaco’s advantage is that the herd is very large and can be tested on a large scale. The standard death rate of pigs for meat is less than 5%, Dabaco’s is 3.2%. %”Dabaco Chairman shared.
About the cooking oil segment?
Mr. So said, the Dabaco oil brand used to be monotonous, only Coba oil. Difficult to sell on the market. However, Dabaco has just launched 5 or 6 more product lines. Previously, we only made soybean oil, but now we also produce gac oil, rice oil, etc. to diversify products and export to Korea, Iran, etc.
About management thinking and the slogan “dare to think, know how to do”?
Chairman of Dabaco said that the group’s leadership system compared to the general level of the whole country is rare. Not only good at expertise but also good at management. “We are proud to have built a leadership team after 28 years. There are many officials who can replace me at any time without any impact, or even do better”, Mr. So shared. Currently, the Deputy General Directors are all very young but have many years of experience. The directors of member companies are also very good at expertise, research, etc. In the near future, the group will research more about genetic technology.
Tags: Pig herd productivity high today confidently completing profit plan billion
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