How is Quoc Cuong Gia Lai doing, given the sale of QCG shares?

DNHN - Recently, QCG's shares reached the ceiling price from May 26 to the present, causing many investors to "fall back" and lose more than 12 percent immediately following the morning session on June 14. How is the business of Ms. Nguyen Thi Nhu Loan

Quoc Cuong Gia Lai’s shares were abruptly sold off.

14 June morning, after a long series of ceiling gains, QCG shares of Quoc Cuong Gia Lai turned downward.

Notably, before hitting the floor at 11,250 dongs, this ticker reached a high of 12,850 dongs at the beginning of the session. Statistics indicate that 1.43 million QCG shares were matched at the ceiling price and over 1 million were matched at the floor price this morning.

After 10 am, the "turning" price movement of QCG stock occurred in the blink of an eye. Consequently, investors who rushed to place buy orders at the ceiling price lost 12.5% in a matter of minutes.

Meanwhile, investors who were able to sell shares at the ceiling price this morning can be described as "extremely fortunate." Even if they agree to sell at the floor price, investors still make a profit after T+2.5 due to the previous series of ceiling increases.

Since the chain of ceiling increases began on May 26, the price of QCG has increased by 121.5% (including this morning's floor decrease). During the aforementioned period, whenever investors sold, they made a substantial profit.

Currently, QCG has white buyers and matched orders totaling 2.76 million shares, whereas the selling surplus at the floor price is approximately 2 million shares. The level of order matching at QCG on the morning of June 14 was significantly higher than in previous sessions. Yesterday, QCG's total matched order was only 461,000 units, while on December 6 it was only 417,500.

This morning, VN-Index primarily moved above the reference line, but temporarily closed at 0.07 points, or 0.01%. The pressure to generate a profit is considerable. The HNX-Index rose 0.18 points, or 0.08%, while the UPCoM-Index rose 0.07 points or 0.09%. There were 430 market-wide losers compared to 347 market-wide winners. Thus, although the indicators increased marginally, the overall situation was "green with red skin"

The trading volume on the HoSE was 424 million shares, or 7,574 billion VND, while on the HNX it was 59 million shares or 886 billion VND.

How does QCG fare?

QCG shares of Quoc Cuong Gia Lai Joint Stock Company have increased by 91% since the beginning of the year, bringing the company's market capitalization to VND 2,088 billion. However, during the first quarter of the previous year, Quoc Cuong Gia Lai earned only 1 billion dongs.

According to Quoc Cuong Gia Lai, the company's production and business operations are proceeding normally and unaffected by recent events. Receipt of an active judgment enforcement decision from the Ho Chi Minh City Civil Judgement Execution Department on refunding the company a sum of nearly 17 billion dongs temporarily held in the bank's account has only recently been made public by QCG. Ho Chi Minh City Police are under investigation by the security firm. In addition, there is information about the Vietnam International Arbitration Center's (VAIC) decision regarding the lawsuit between Sunny Island Joint Stock Company and the Bac Phuoc Kien Residential Project.

The current market price of QCG shares is 7,590 VND per share, and the company's market capitalization has increased to 2,088 billion VND. In just one trading week, QCG surpassed the ceiling price by a margin of approximately 40 percent, and in one month, its value increased by 86 percent. QCG's stock price has increased by 90.7% since the start of the year, after 5 months of trading on the market.

Ms. Nguyen Thi Nhu Loan owned nearly 102 million QCG shares as of December 31, 2022, representing 37.05 percent of QCG's charter capital. Nguyen Quoc Cuong is the son of Loan; Cuong Dollar owns 537,500 shares. Nguyen Ngoc Huyen My, the daughter of Loan, owns 39.4 million shares of QCG. Lau Duc Duy, the son-in-law of Loan, owns 10,5 million shares of QCG.

With the strong increase of QCG shares on the stock market, Ms. Nguyen Thi Nhu Loan's family's asset valuation based on the share price increased proportionally. In particular, the aforementioned assets increased by nearly 91% compared to the start of the year, reaching approximately VND 1,156 billion.

In the first quarter of this year, Quoc Cuong Gia Lai Joint Stock Company's revenue reached nearly VND 166 billion, a 23 percent increase over the same period last year. However, the company's gross profit margin is only 5%, compared to 10% for the same period a year ago. This resulted in a 39% decline in gross profit to over 16 billion Vietnamese dongs.

On the other hand, certain expenses incurred during the period, including financial expenses and selling expenses, increased by 55% and 18%, respectively, to 11 billion dongs and nearly 2 billion dongs, thereby compromising QCG's results. trail. As a result, QCG's profit for the first quarter of 2023 was just over 1 billion dongs, a decrease of 91% compared to the same period in the previous year.

Nhan Ha Phan