Foreign investors break 10 consecutive sessions of net selling of Hoa Sen shares

Foreign investors ended their 10-session streak of net selling Hoa Sen shares.

Foreign investors bought a net of over 8 billion VND worth of HSG shares on September 18th, following a relentless sell-off of 10 consecutive sessions.

Shares of Hoa Sen Group Joint Stock Company (stock code: HSG) closed today's trading session at VND 20,100, a slight increase of 0.5% compared to the reference price. Thanks to positive foreign investment, HSG extended its winning streak for the second consecutive session.

Specifically, of the 9.28 million HSG shares traded today, foreign investors transacted over 432,000 shares. This group disbursed 8.3 billion VND to buy 416,500 shares, while selling 16,000 shares, equivalent to nearly 320 million VND. The net purchase value therefore reached 8 billion VND, thus ending the net selling streak that had lasted since the beginning of September 2024.

During this net selling spree, the peak was on September 5th, when the net selling value reached over 75 billion VND, while foreign investors disbursed less than 800 million VND. The September 13th session recorded the lowest disbursement, with foreign investors only injecting 52 million VND to accumulate HSG shares.

Overall, foreign investors have net sold HSG shares with a total net value of up to 305 billion VND since the beginning of September.

HSG's share price has fluctuated since foreign investors aggressively sold off their holdings. The stock has fallen slightly by 4% compared to the beginning of the trading series and has lost nearly 21% compared to its 2-year peak reached in July 2024 (25,350 VND). The average trading volume over the last 10 sessions is over 9.2 million shares.

In terms of business performance, in the third quarter of the 2023-2024 fiscal year (from April 1, 2024 to June 30, 2024), Hoa Sen recorded net revenue of VND 10,840 billion, an increase of 25.4% compared to the same period last year. Gross profit during this period was approximately VND 1,337 billion, an increase of 50% compared to VND 892 billion in the same period last year. The gross profit margin reached 12.3%, an increase of 2 percentage points compared to the same period.

After deducting expenses, the company's pre-tax profit was over 287 billion VND and after- tax profit was 273 billion VND, representing increases of 22.5 times and 18.3 times respectively compared to the same period last year.

For the first nine months of the fiscal year (from October 1, 2023 to June 30, 2024), Hoa Sen recorded net revenue of VND 29,163 billion, an increase of 23.8% compared to the same period last year. Gross profit was approximately VND 3,405 billion, an increase of 71% compared to the same period last year. The profit margin was nearly 11.7%. The company reported a pre-tax profit of VND 717 billion and an after- tax profit of VND 696 billion, while in the same period last year it incurred losses of VND 352 billion and VND 410 billion respectively.

For the 2023-2024 fiscal year, Hoa Sen has set its business plan with two scenarios. Specifically, Scenario 1 aims for a sales volume of 1,625 thousand tons, a 13.3% increase compared to the same period. Revenue is projected at VND 34,000 billion, a 7.4% increase compared to the same period, and after-tax profit is projected at VND 400 billion, more than 12 times higher than the previous fiscal year.

Scenario 2 targets an estimated total sales volume of 1,730 thousand tons, a 20.7% increase year-on-year. Revenue is projected to reach VND 36,000 billion, an increase of nearly 14%, and after-tax profit is expected to reach VND 500 billion, more than 15 times higher than the previous fiscal year.

Thus, at the end of the first nine months of the fiscal year, Hoa Sen had completed 87.2% of its revenue plan according to scenario 1 and 82.4% according to scenario 2. Profits accordingly reached 174% and 139% of the annual targets, respectively.

According to an analysis report published half a month ago by KB Securities Vietnam (KBSV), in the short term, Hoa Sen 's export volume will be negatively impacted as demand for imported steel and galvanized sheets weakens due to safeguard measures applied in the US and EU markets. This increases the cost of importing steel into these markets.

In the long term, export prospects will be minimally affected thanks to the price difference between HRC in the US and EU and Vietnam remaining at 10% or more. In addition, lower import tariffs on steel from Vietnam compared to China provide an impetus for galvanized steel exports.

The KBSV expert group recommends a neutral rating with a target price of VND 22,600 per share, representing a return of 12.4% compared to the current price.

Source: https://baodautu.vn/khoi-ngoai-ngat-chuoi-ban-rong-co-phieu-hoa-sen-10-phien-lien-tiep-d225272.html