Real estate company chairman had nearly 5 million shares sold for mortgage

Mr. Nguyen Khanh Hung, Chairman of the Board of Directors of LDG Investment, has just announced that a securities company sold nearly 5 million shares under forced liquidation.

The transaction was carried out via order matching on May 18-19. After the transaction, Mr. Hung's share ownership ratio at LDG decreased from 5.86% to 3.92%, officially no longer a major shareholder at LDG.

This is not the first time Mr. Hung has had his shares sold for mortgage. In April, Mr. Hung had more than 3.5 million LDG shares sold for mortgage on April 13-14.

Chairman Nguyen Khanh Hung. (Photo: LDG)

Even earlier, in November 2022, Mr. Hung was repeatedly sold off millions of shares by securities companies.

Since the time Mr. Hung was sold off in November 2022, LDG shares have always been around VND5,000/share. At the end of the trading session on May 19, LDG shares were priced at VND4,370/share.

LDG has just announced its financial report for the first quarter of 2023. The company recorded revenue of VND 0.71 billion, down 99.4% year-on-year, and after-tax profit recorded a loss of VND 69.98 billion, compared to the same period with a profit of VND 2.4 billion, a decrease of VND 72.38 billion.

The real estate market is in trouble, and stock prices are plummeting. A number of real estate company chairmen are being forced to sell off their assets by securities firms.

In March 2022, Mr. Do Quy Hai, Chairman of the Board of Directors of Hai Phat Investment Joint Stock Company (HPX), had more than 1 million HPX shares sold for collateral, reducing his ownership from 14.73% to 14.39% of charter capital.

Mr. Nguyen Thien Tuan, Chairman of the Board of Directors, and his son, Mr. Nguyen Hung Cuong, Vice Chairman of the Board of Directors of DIC Corp, also sold 10 million and 2 million DIG shares, respectively.

Business news

The stock market also has several other important events for companies listed on the exchange.

* TDH: On May 19, Thu Duc Housing Development Corporation received 9 decisions from the Ho Chi Minh City Tax Department on the enforcement of administrative decisions on tax management.

* VHC: Vinh Hoan Corporation's April business results report recorded export revenue of VND869 billion, down 16% compared to the previous month and down 47% compared to the same period last year.

* DXG: According to the financial statement of Ha An Real Estate Investment and Trading JSC (a company 99% owned by Dat Xanh Group JSC), after-tax profit was less than VND 60 billion in 2022, while the previous year's profit was up to VND 1,333 billion, a decrease of nearly 96%.

* TS4: Seafood Company No. 4 announced its Q1/2023 financial report, with net revenue reaching nearly 54 billion VND, almost 11 times higher than the same period last year. However, the company operated below cost, resulting in a gross loss of over 563 billion VND and a net loss after tax of nearly 566 billion VND. This is the heaviest quarterly loss since its listing in 2002 and the 10th consecutive quarter of losses.

* IDP : The Board of Directors of International Dairy Products Joint Stock Company has just approved the dissolution of its subsidiary, Green Light Investment Joint Stock Company, after nearly 9 months of establishment. This is an enterprise of IDP aiming to enter the real estate market.

Dividend information

* CDN : Danang Port JSC announced the closing date for 2022 cash dividend payment. The ex-dividend date is June 14. It is expected that CDN will need to spend nearly VND 149 billion to pay 2022 dividend at a rate of 15%.

* CHP: June 8 is the closing date for the list of shareholders receiving the remaining 2022 dividends of Central Hydropower JSC. The ex-dividend date is June 7 and the expected payment date is July 5. CHP needs to spend more than VND 264 billion for this dividend payment at a rate of 18%.

* NLG: Nam Long Investment Corporation announces the last registration date for the second dividend payment of 2022 in cash. The ex-dividend date is May 29. NLG will spend nearly VND 77 billion on this dividend payment at a rate of 2%. Previously, NLG paid the first dividend of 2022 in cash at a rate of 3%.

* HDG: The Board of Directors of Ha Do Group Corporation approved the implementation of the plan to issue shares to pay dividends in 2022. Accordingly, with an implementation rate of 25%, HDG plans to issue nearly 61.2 million shares to pay dividends in 2022.

* CAN: Ha Long Canned Food JSC will pay 2022 cash dividends at a rate of 15%. The ex-dividend date is June 7. With 5 million outstanding shares, the estimated total amount CAN needs to pay for dividends is VND 7.5 billion. Implementation date is June 23.

VN-Index

At the end of the trading session on May 19, the VN-Index closed down slightly by -1.24 points, stopping at 1,067.07 points. The HNX-Index and UPCoM-Index closed up slightly by +0.9 points and +0.18 points, reaching 213.91 points and 81.08 points, respectively.

According to SSI Securities, the VN-Index recovered and remained above the support zone of 1,054 – 1,056 points. The VN-Index may not have had a major change to change the accumulation trend in the zone of 1,054 – 1,075 points.

Amidst the current sideways movement and strong cash flow, the market is likely to see a shift in cash flow.

Investors can focus on sectors that are attracting money to find short-term trading opportunities. At the same time, it is necessary to pay attention to account risk management when the VN-Index adjusts below the support level of 1,054 points.

Mr. Nguyen Ngoc Thuy's company shares are restricted from trading. Ho Chi Minh City Stock Exchange (HoSE) announced the transfer of Apax Holdings Investment JSC (IBC) shares from controlled to restricted trading.

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