The Hanoitimes - With market capitalization of nearly VND2.15 trillion (US$92.98 million), Song Hong Garment has become Vietnam’s second largest garment company in terms of market capitalization.
Vietnam’s leading garment and bedding manufacturers Song Hong Garment, partner of famous fashion brands such as Nike and Levi, debuted 47.6 million shares on Ho Chi Minh City Stock Exchange on November 28.
For a reference price of VND45,000 (US$1.95) per share in its first trading session, the company’s market capitalization stood at nearly VND2.15 trillion (US$92.98 million), becoming the second largest garment company in terms of market capitalization, behind Vietnam National Textile and Garment Group with VND6.3 trillion (US$272.56 million).
Song Hong Garment has been no-longer a state-owned enterprise since 2004 with current charter capital of VND476 billion (US$20.58 million).
The company’s core businesses included providing outsourced production for global brands Nike, Levi’s, Calvin Klein, Tommy Hilfiger, DKNY, Karl Lagerfeld, Hurley, Converse, among others, and bedding for domestic market.
For exporting, Song Hong Garment operates under the Cut-Make-Trim (CMT) and free-on-board (FOB) systems.
Bui Viet Quang, Song Hong Garment’s CEO, said the company maintains business relations with five to six strategic customers, including GAP, Mango, Zara, Columbia Sportswear, GIII, and Haddad Brands.
The company has the largest contract to date with Haddad Brands, manufacturer and distributor of Nike Brand, Levi’s, Jordan Brand, Hurley, which is worth US$29 million and accounted for over 20% of revenue in the first nine months of 2018.
As of September, Song Hong Garment revenue reached VND3 trillion (US$129.78 million), and gross profit of VND580 billion (US$25.09 million).
Song Hong Garment currently has four major shareholders, consisting of brokerage company FPT Securities with 13.61% stake and other three individuals with stakes of 21.63%, 10.92% and 7.7%.