Despite numerous difficulties, Novaland Group's stock is "surging"

DNHN - The trading value of NVL shares of NoVa Real Estate Investment Group JSC increased to more than 1,100 billion dongs on June 28. Even though the Group has encounter numerous difficulties in the recent past relating to its financial business operation.

During trading on June 28, NVL shares increased 4.3% to 15,600 dongs per share, reaching a high of 15,850 dongs per share. This represents a 6-month high.

Shares of Novaland rose sharply because numerous business initiatives were aimed at overcoming obstacles. As a result of delaying the payment of VND7,000 billion in bonds, Novaland's cash flow pressures have also decreased.

At the 2023 Annual General Meeting of Shareholders, the chairman of Novaland, Bui Thanh Nhon, stated that 2022 was a stormy year that left the company with heavy losses and valuable lessons.

During the crisis, there was no operating cash, and banks squeezed capital and sales money. Novaland accepted the loss and committed to compensating customers and shareholders.

In the fourth quarter of 2022 and the first half of 2023, Novaland will have resolved several issues, including debt postponement, asset sale, and debt conversion into shares; coordinate with international consulting organizations and leading experts to restructure and control cash flow; and restructure and manage the company's cash flow.

Similar to Novaland, HBC shares of Hoa Binh Construction Group increased to the ceiling price and exceeded par value following the AGM. The closing price of HBC on June 28 was 10,100 VND per share, a gain of 6.77 percent. Since June 1st, HBC's stock price has increased by over 20%.

Notably, Apec Group’s performance on the market continued to decline. APS shares traded at 10,600 dongs each. Both API and IDJ are priced at 9,300 VND per share. This group was abandoned by investors, who constantly placed sell orders at the floor price with no takers.

Financial News

There are several other significant events involving companies listed on the floor of the stock exchange.

* DPM: At the 2023 Annual General Meeting of Shareholders, PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) established a conservative plan with consolidated revenue of VND 17,372 billion, profit after tax of VND 2,250 billion, and dividend payment of 40% - a relatively high level compared to the norm.

* SPC: Saigon Plant Protection Joint Stock Company until the payment of the first dividend in cash at a rate of 7 percent in 2022. The closing date for shareholder registration to receive dividends is July 21, and payment begins on August 14.

* DIG: There were only 535 shareholders present at the 2023 Annual General Meeting of Shareholders of DIC Corp (DIG) on June 28, representing shares representing 36.91 percent of charter capital. According to the rules, the first DIG meeting was unsuccessful.

* LDG: Following two unsuccessful attempts, LDG Investment Joint Stock Company has announced that the third Annual General Meeting of Shareholders will be held on July 31, 2023.

* VGC: Viglacera Corporation's Board of Directors has just approved the capital contribution to Viglacera Thai Nguyen Joint Stock Company. Viglacera Corporation is a founding shareholder and holds 51% of Viglacera Thai Nguyen's total charter capital, or VND 306 billion.

* BSR: Binh Son Refining and Petrochemical Joint Stock Company has announced the termination of the right to receive cash dividends in 2022. The rights expiration date is August 22.

Transactional details

* NVL: NovaGroup Joint Stock Company has just announced that more than 1.65 million shares of No Va Real Estate Investment Group JSC (Novaland) were sold by a securities firm between June 21-23 and June 26-28. After the transaction, this organization's ownership of NVL shares decreased from 539.2 million to over 537.5 million, or by 27.56%.

A securities firm sold 4.26 million IBC shares of Apax Holdings Investment Group Joint Stock Company as a mortgage of 4.26 million IBC shares of Egroup Education Group Joint Stock Company. Transactions occur between June 22 and June 28.

* PCG: Viet Tu Investment Co., Ltd. has sold all 2,8 million shares of PCG held by Urban Gas Development Investment JSC. The deal was executed on June 19.

* POM: Between July 3 and July 28, Mrs. Do Nhung, the sister of Mr. Do Duy Thai, Chairman of the Board of Directors of Pomina Steel JSC, registered to sell 5,3 million POM shares by agreement and order matching.

* TIG: Thang Long Investment Group Joint Stock Company has approved the transfer of all 9,9 million shares held by HDE Holdings JSC for VND 15,000 per share. The anticipated date of implementation is the second quarter of 2023.

* TKC: On June 23, the investment organization MKDS Financial Investment Fund acquired more than 1.15 million shares of Tan Ky Construction and Real Estate Trading Joint Stock Company.

VN-Index

The VN-Index increased by 4.02 points (+0.35%) to 1,138.35 points on June 28. The HNX index fell 0.57 points (-0.25%) to reach 230.25 points. The UPCoM-Index rose 0.34 points (+0.39%), reaching 85.99 points.

According to Tien Phong Securities (ORS), there is still a chance that the VN-Index will reach around 1,200 points as long as the cash flow remains stable at over 15,000 billion dongs per session.

In contrast to small- and mid-cap stocks in the past, large-cap groups have a relatively sluggish cash flow growth rate, so this increase will be prudent.

According to SHS Securities, the market's accumulation model has performed very well over the past six months from a medium- to long-term perspective. After a series of short-term recoveries, the VN-Index has reached a zone of strong resistance around 1,150 points.

PV (Synthesis)