National Securities Corporation (NSI) recently registered to sell all 513,000 shares it holds at Song Da Urban and Industrial Park Development Investment Joint Stock Company (Sudico, HoSE: SJS), equivalent to 0.44% of capital, from June 22 to July 19, 2023.
If the transaction is successful, National Securities will no longer be a shareholder of SJS. The reason for the sale, according to the company, is to restructure its portfolio.
Regarding the relationship, Mr. Bui Quang Bach - Member of the Board of Directors of Sudico is concurrently holding a similar position at National Securities and is a Member of the Board of Directors and Audit Committee of SAM Holdings. Mr. Bach currently does not hold any shares in SJS. Meanwhile, Mr. Phuong Xuan Thuy - Member of the Board of Directors of SJS is also Vice Chairman of the Board of Directors of SAM Holdings.
On June 12, SAM Holdings JSC (HoSE: SAM) also divested all its capital from SJS on June 12, 2023 after placing an agreement to sell 377,600 SJS shares, equivalent to 0.33% of capital. The total estimated transaction value is nearly VND 17 billion. After the transaction, SAM Holdings is no longer a shareholder of Sudico.
Previously, National Securities registered to sell 2.1 million shares but in fact only sold 1.6 million SJS shares, thereby reducing the ownership ratio from 21.84% to 0.44%, equivalent to 513,000 shares. The transaction was conducted from April 24 to May 19, 2023. The reason for not selling all registered shares was because the market situation was not favorable.
Regarding the financial picture, at the end of the first quarter of 2023, SJS's net revenue reached 54 billion VND, down 71% over the same period. In the same direction, the cost of goods sold decreased more sharply than revenue, down 74% to 44 billion VND, leading to a sharp improvement in gross profit.
In contrast, the company recorded pre-tax profit of VND 17 billion and after-tax profit of VND 11.5 billion, down more than 15% compared to the same period in 2022. Compared to the results achieved in the first quarter, the company has only achieved 5% of the annual profit plan.
In which, SJS transferred all shares of Thang Long Real Estate Investment and Trading JSC with a value of 160 billion VND, so in the period, the investment provision reversal recorded more than 42 billion VND.
SJS stock performance over the past year (Source: TradingView).
In addition, SJS is setting aside 13.6 billion VND in provisions for its securities portfolio. The investment in shares of Viet Real Estate Investment JSC recorded a loss of 76% while the investment in PV2 Investment JSC lost up to 80%.
In the morning trading session on June 19, SJS stock price was trading around VND 42,300/share, down 5% compared to the beginning of the year. Compared to the bottom in November 2022, the stock price has only increased slightly by 10% and is still trending sideways .
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