At the close of trading on June 27th, XDC shares of Tan Cang Construction Joint Stock Company had hit the ceiling price for the ninth consecutive session, pushing the share price up to 767,100 VND per share.
Thus, XDC has officially overtaken VNZ of VNG Corporation to become the stock with the highest market capitalization on the stock exchange to date. At the close of today's trading session, VNZ shares reached only 726,000 VND/share, down 0.55%.
After a period of quiet and sluggish trading, XDC shares suddenly surged on the stock exchange with continuous limit-up increases. From a price of 15,700 VND on April 24th, XDC's price increased 56 times by June 27th, in just over two months.
However, the liquidity of XDC shares has not improved, with average trading volume remaining at only a few hundred shares per session, and regular trading has only been recorded in the last two months. Prior to that, the stock had almost no liquidity.
XDC stock performance from its listing to the present (Source: TradingView).
Notably, XDC's stock price began to accelerate following the trading activity of major shareholder Do Phu Dat. Specifically, Mr. Dat purchased 500 XDC shares, increasing his total ownership to 6.1%, thus officially becoming a major shareholder of the company from April 25, 2023.
With the XDC share price at the time of purchase at 18,000 VND/share, Mr. Do Phu Dat spent approximately 9 million VND for 500 XDC shares. Therefore, Mr. Dat's asset value may have increased to 383 million VND after two months, 42 times the initial investment.
Tan Cang Construction Company Limited, formerly an engineering unit of the Navy, operates in the fields of construction and repair of hydraulic structures; dredging of river and seaports; and leasing of onshore cranes in the provinces of Quang Nam, Khanh Hoa, Vung Tau, and Ho Chi Minh City.
On October 21, 2022, Tan Cang Construction Company offered nearly 3.28 million shares for public auction in its first public offering, with a starting price of VND 15,322 per share, equivalent to a fundraising value of over VND 50 billion.
On December 1, 2022, XDC shares were officially listed on the UPCoM exchange, with an initial offering price of VND 15,500 per share. The company's charter capital is VND 90 billion, equivalent to 9 million shares.
According to the audited financial report, in 2022 the company's revenue reached VND 279 billion, a 15% decrease compared to the same period. Of this, construction activities contributed VND 273 billion, while the remaining nearly VND 6 billion came from bridge construction business cooperation activities. As a result, XDC's after-tax profit only reached VND 8 billion, a 9% decrease compared to 2021.
According to the explanation, the company's management stated that its production and business activities only began to pick up again in the second quarter of 2022. However, geopolitical instability in some regions and global inflation have driven up raw material prices, causing a serious decline in domestic construction investment demand. In addition, generating revenue from competitive bidding has been difficult due to the scarcity of construction projects .
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