Profit increased by 45% but still behind the annual plan
Clever Group Joint Stock Company (Code: ADG) is the predecessor of Smart Advertising Joint Stock Company (CleverAds), associated with the name of famous businessman Nguyen Khanh Trinh. After a gloomy 2023, Clever Group had a significant recovery in the second quarter of 2024.
Specifically, the company recorded revenue in the second quarter of VND 118.4 billion, profit after tax of VND 11.9 billion. This result has partly helped to offset the loss of VND 1.9 billion in the previous quarter of 2024. As a result, the 2024 semi-annual financial statement recorded profit after tax of VND 8.7 billion, an increase of 45% over the same period.
Clever Group (ADG) profit increased by 45% but still behind the annual plan (Photo TL)
At first glance, ADG's semi-annual profit has grown strongly compared to the low base of 2023. However, compared to the target set for 2024 with after-tax profit of VND 53.4 billion, ADG has only completed 16.2% of the yearly plan.
With unremarkable results in the first half of 2024, it is not difficult to understand why ADG shares continue to decline.
ADG lost nearly half of its market value since the beginning of the year.
Clever Group’s ADG stock was once a shining star in the digital advertising market. The company was the first partner of Google and Facebook in Vietnam, dominating a large market share in the digital advertising sector since 2013.
At one point, ADG shares "climbed" to VND 69,000/share on the UpCom floor and moved to the HoSE floor with a reference price of VND 64,900/share from the beginning of 2021. Since then, ADG has continuously lost value, currently only recorded at VND 11,550/share at the trading session on October 16, 2024.
In just the first 9 months of the year, ADG shares have lost more than half of their value. Compared to the time they first listed on HoSE, ADG's market value has been "blown away" by 82.2%.
Compared to the beginning of 2024, ADG shares have lost nearly half their value. In addition, compared to the reference price when listed on HoSE, ADG has lost 82.2% of its value after just over 3 years.
This means that if an investor buys ADG shares as soon as the company is listed on HoSE, with an investment value of 100 VND, the investor will now only have 17.8 VND left.
ADG and cross-industry investment decisions
In the digital advertising sector, Clever Group’s capabilities cannot be denied as it is still a partner of major technology companies. However, ADG’s cross-industry investment activities are making investors question the level of efficiency it brings.
Recently, Clever Group contributed an additional VND22.2 billion, bringing the total capital contribution to VND50.2 billion for Smart Real Estate JSC. Thereby, Clever Group now owns 69.674% of Smart Real Estate. Chairman Nguyen Khanh Trinh was appointed as the authorized representative to manage the capital contribution at this Smart Real Estate subsidiary.
Not only investing in Smart Real Estate, Clever Group also previously invested more than half of its assets in financial investments. At the end of the second quarter of 2024, the unit's total assets were 451 billion VND, but the financial investments held to maturity accounted for 252 billion VND.
Notably, there are 138.6 billion VND in deposits and 114 billion VND in bonds. The investment bonds include: 52.2 billion VND in bonds of Saigon Glory Company Limited; 50 billion VND in bonds of Tan Thanh Long An Investment Company; 6.28 billion VND in bonds of Hung Thinh Land Joint Stock Company.
Tan Thanh Long An is a company that is late in paying bond interest and is also the company whose assets securing the bonds are being frozen due to its involvement in the Van Thinh Phat Group case.
In addition, Clever Group was also involved in a "scandal" when it decided to spend 29 billion VND to buy the villa of Chairman Nguyen Khanh Trinh at B8 - 12 of the garden villa and sports and entertainment project in Tien Xuan commune, Thach That district, Hanoi.
Source: https://www.congluan.vn/co-phieu-cua-clever-group-adg-lao-doc-giam-50-gia-tri-sau-9-thang-nam-2024-post317098.html
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