Vietnam Airlines shares hit a 19-month high.

HVN shares just experienced an exhilarating trading week with four consecutive days of strong gains on high trading volume, pushing the share price up to 16,000 VND, the highest price since September 2022.

Despite a sharp market correction for the third consecutive session, shares of Vietnam Airlines (stock code: HVN) continued their bullish trend. Specifically, HVN rose 6.67% to VND 16,000 in the final trading session of the week, extending its two-session winning streak to its highest price since the beginning of September 2022. Overall this week, Vietnam Airlines shares only recorded one day of decline, with the rest of the sessions showing positive gains, resulting in an 18.5% increase compared to the end of the previous week.

The surge in HVN's share price helped it lead the group of stocks with the most positive impact on the VN-Index last week. With over 2.21 billion shares listed on the Ho Chi Minh City Stock Exchange, Vietnam Airlines' market capitalization is approximately 35,440 billion VND.

Not only has the share price fluctuated significantly, but the flow of money into Vietnam Airlines shares has also improved considerably. Specifically, in the April 5th trading session, the volume of successful trades reached 4.64 million units, double that of the previous session and the highest level in the past 9 months. The volume of successful transactions in this session was equivalent to 73 billion VND.

Price and liquidity chart of HVN stock.

According to the audited consolidated financial report for 2023, Vietnam Airlines recorded revenue of over VND 92,230 billion, a 30% increase compared to the previous year. This is also the third highest revenue figure in the company's history, only lower than the period of 2018-2019 before the Covid-19 outbreak. The company reported a net loss of VND 5,631 billion, a significant improvement compared to the VND 11,220 billion loss of the previous year. Currently, the company has accumulated losses of approximately VND 41,000 billion and negative equity of over VND 17,000 billion.

HVN shares are also under control and trading restrictions, only being traded in the afternoon session. The stock also faces the risk of mandatory delisting due to violations of business performance conditions, including losses for three consecutive years, accumulated losses exceeding the contributed charter capital, and negative equity in the most recent audited financial statements.

In its explanation regarding the roadmap for resolving the issue of controlled shares, the Vietnam Airlines leadership stated that it has completed the restructuring plan for the Corporation for the period 2021-2025 and has reported it to shareholders and relevant authorities for consideration.

According to the plan, in 2024-2025, Vietnam Airlines will implement a comprehensive set of solutions to address the consolidated losses and negative equity. The company also anticipates a positive recovery in both the domestic and international aviation markets, leading to more positive business results during this period.

Source