At the close of the final trading session on the Ho Chi Minh City Stock Exchange (HoSE), HBC shares rose 5.5% compared to the reference price, reaching 5,750 VND and ranking among the top 10 stocks with the most positive impact on the market.
Shares of Hoa Binh Construction Group Joint Stock Company (stock code: HBC) closed on September 5th at VND 5,750, up 5.5% from the reference price and included in the list of stocks with the most positive impact on the VN-Index. HBC's share price has increased in 6 out of the last 7 trading sessions and has accumulated 24% from its nearly 9-year low (VND 4,630) recorded on August 12th.
Not only did HBC buck the market trend in terms of price increase, but its trading volume also fluctuated significantly today. HBC saw 2.9 million shares traded, an increase of over 660,000 units compared to the previous session, extending its streak of 7 consecutive sessions with trading volumes exceeding 1 million shares. The trading value today reached 16.3 billion VND, an increase of 4.2 billion VND compared to the previous session.
Previously, HBC experienced 4 floor-price sessions after HoSE announced information about the mandatory delisting on July 26. The series of floor-price sessions brought the market price at that time from 7,250 VND to 5,130 VND.
During this downward trend, HBC recorded a surge in liquidity, especially in the last trading session of July when major shareholder Hyundai Elevator Co., Ltd. sold 5 million shares. Following this transaction, Hyundai Elevator Co., Ltd. reduced its ownership in HBC from 8.08% of charter capital (28.06 million shares) to 6.64% of charter capital (23.06 million shares).
According to a decision by HoSE, HBC was compulsorily delisted from September 6th due to its undistributed after-tax profit as of December 31st, 2023 being negative VND 3,240 billion, exceeding the company's actual contributed charter capital of VND 2,741 billion. The shares will be transferred to trading on the UPCoM exchange from September 10th.
Upon receiving the delisting notice at the end of July, HBC responded in writing to the regulatory authority, stating that it disagreed with the grounds for the HoSE's mandatory delisting of its shares . Mr. Le Viet Hai, Chairman of Hoa Binh Construction Group, cited the reasons for his objection as follows: Decree 155 does not specify in detail the conditions for considering accumulated losses on consolidated audited financial statements or on separate audited financial statements. Currently, there is no legal document from any competent authority providing guidance or interpretation of the law in this case.
The company's charter capital is VND 2,741 billion, while the after-tax profit in the separate audited financial statements for 2023 was a negative VND 2,401 billion and in the consolidated audited financial statements for 2023 was a negative VND 3,240 billion. Therefore, the total accumulated losses of HBC in the separate audited financial statements have not exceeded its charter capital. Furthermore, Mr. Hai argued that HoSE's reliance on past precedents to consider delisting HBC shares is inconsistent with current law.
Regarding the business situation, in the first half of 2024, Hoa Binh Construction's audited net revenue reached VND3,812 billion, slightly up from the previously announced VND3,811 billion. The company reported a revised gross profit of VND105 billion, down 13% from the VND121 billion in the self-made report. The difference comes from the parent company's adjustment of data related to the classification of cost of goods sold and other income.
Financial income increased after the audit due to the parent company recording additional interest on late payments from customers, from VND 160 billion to VND 195 billion. Other income also fluctuated significantly, increasing from VND 518 billion to VND 555 billion after the review due to upward adjustments at the parent company and at the subsidiary related to receivables from investors . An Hai Bridge project .
This is the main reason why the company's after-tax profit increased from VND 740 billion to VND 830 billion after the audit, an increase of VND 90 billion.
Compared to the total revenue target of VND 10,800 billion (a 43.3% increase year-on-year) and after-tax profit target of VND 433 billion set at this year's shareholders' general meeting, Hoa Binh Construction has completed 35.3% of the revenue plan and exceeded the profit target by 91.6%.
As of the end of June, Hoa Binh Construction's total assets reached VND15,790 billion, an increase of VND540 billion compared to the beginning of the year and an increase of VND158 billion compared to the self-made report. Short-term items accounted for VND14,169 billion in the company's asset structure. Of which, the company's cash and cash equivalents were nearly VND305 billion.
As of June 30, 2024, the company had accumulated losses of VND 2,403 billion and several overdue debts. “These indicators suggest the existence of material uncertainties that could cast doubt on Hoa Binh Construction’s ability to continue as a going concern,” the auditors stated in their financial report.
Source: https://baodautu.vn/co-phieu-hbc-tang-vot-trong-phien-cuoi-cung-tren-san-hose-d224131.html
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