Vietnam's oldest bicycle brand gears up for stock market debut

The Hanoi Stock Exchange (HNX) recently approved the listing of 23.7 million shares of TNV, owned by the Thong Nhat Ha Noi JSC, on the UpCom bourse.

Customers at a store of Thong Nhat Hanoi. (Photo: Thong Nhat FB)

The transaction value for these shares is 237 billion VND (9.3 million USD), priced at 10,000 VND per share.

Established in 1960 as the Thong Nhat Bicycle Factory, Thong Nhat Ha Noi has a rich history. Thong Nhat bicycles were once a beloved brand synonymous with generations of Vietnamese people.

As of June, ahead of the UpCom listing registration completion, major shareholders in Thong Nhat Ha Noi include the Hanoi People’s Committee, representing 45% of state capital, VSD Investment JSC with a 41.68% stake and Trinh Nguyen Khanh with 12.17%.

The iconic Thong Nhat brand saw consistent revenue growth from 2020 to 2023.

Revenues increased from 77.9 billion VND in 2020 to 100.5 billion VND in 2021. However, the company faced losses of 10 billion VND and 10.7 billion VND in 2020 and 2021, respectively, due to the impact of the COVID-19 pandemic.

By 2022, its revenue surged by almost 42% to 142 billion VND, with TNV returning to profitability at 13.7 billion VND. In 2023, revenue continued its upward trajectory, reaching 176.6 billion VND, although net profit decreased to 2.6 billion VND.

Last year, sports bicycle sales at the Thong Nhat Ha Noi JSC dropped by 50%, totalling around 12,000 units. Conversely, sales of children's bicycles saw a significant 140% increase year-on-year, with over 74,000 units sold./.

VNA