Many times changing business direction
According to BIDV Securities data, the predecessor of HVA Investment JSC (UPCoM code: HVA) is An Hung Construction Investment JSC, established in May 2010 with a charter capital of VND 4.5 billion. Initially, this unit was established to operate in the construction and installation sector.
By 2014, the company had increased its capital to 50 billion VND and changed its name to Hung Viet Green Agriculture Joint Stock Company, located at No. 13, Lane 1, Phung Hung Street, Phuc La Ward, Ha Dong District, Hanoi. The company's business lines changed to livestock and crop farming. HVA shares were also listed on the HNX from July 2015.
HVA Investment JSC (Code HVA) has changed its business direction many times, and its stock price also hit bottom at 500 VND/share (Photo TL)
By the end of 2017, the company changed its name to HVA Investment JSC with a completely changed business orientation to a new field of financial consulting and investment. HVA shares were transferred to be listed on the UPCoM exchange from mid-2023.
Most recently, in the 2023 semi-annual consolidated financial report, HVA also switched to coffee production, processing, and coffee agricultural product trading in addition to the previous financial investment field.
It can be seen that since its establishment until now, after 13 years of operation, HVA has continuously changed its business lines in unrelated fields. From construction to livestock farming, then to financial investment and most recently to coffee trading.
How is HVA Investment JSC doing business?
Currently, HVA Investment JSC is registered at No. 81 Nguyen Hien, Residential Area 91B, An Khanh Ward, Ninh Kieu District, Can Tho City. The legal representative is Ms. Nguyen Thi Quynh Anh. The Chairman of the Board of Directors of the company is Mr. Vuong Le Vinh Nhan.
In the first 6 months of 2022, HVA achieved revenue of VND 298.5 billion, down 43.8% over the same period. Cost of goods sold accounted for VND 296.1 billion, the company's gross profit was only VND 2.5 billion, equivalent to a gross profit margin of only 0.8%.
The revenue structure is not clearly explained in the semi-annual financial statements, so it is unclear whether financial investment or coffee trading is the company's main source of revenue.
Financial revenue was only 685 thousand VND while financial expenses in the period increased by nearly 1.5 times, to 469 million VND. Notably, HVA's business management costs and sales costs were very low compared to the scale of revenue, accounting for 362 million and 868 million VND, respectively. As a result, HVA's after-tax profit only reached nearly 1.5 billion VND in the first 6 months of 2023.
In terms of asset structure, at the end of the second quarter of 2023, HVA had total assets of VND 171 billion, down 4% compared to the beginning of the year. Of which, cash and cash equivalents currently account for VND 10.8 billion. In addition, the company has a deposit of VND 13.6 billion at Public Bank Vietnam Limited.
According to the financial statement, during the period, HVA spent VND60 billion to buy 6,000,000 shares of Avina Coffee Group JSC. This number of shares is equivalent to 40% of the charter capital of Avina Coffee Group JSC.
In addition, HVA also invested VND5 billion in the Fundgo Creative Startup Investment Fund managed by Trustpay JSC. This investment is equivalent to 16.82% of the fund's charter capital. Currently, the fair value of this investment has not been determined.
Fundgo Investment Fund is also the unit that completed the investment in Hanagold, a platform advertised to help consumers buy gold online. However, recently Hanagold has also been involved in a scandal surrounding the illegal mobilization of gold.
HVA shares once hit rock bottom at only... 500 VND/share, the Chairman of the Board of Directors was once fined by the State Securities Commission Inspectorate
Since its listing on the stock exchange in 2015, the market price of HVA shares has continuously fluctuated. However, the common feature is that it has never reached the par value of VND 10,000/share.
The peak of HVA code was only 9,000 VND/share on April 1, 2021. There was even a time when this stock code plummeted from the peak of 7,300 VND/share on August 1, 2018 to only 500 VND/share in the trading session on March 2, 2020. Equivalent to a loss of value of 14.6 times in just over a year.
At the trading session on October 16, 2023, HVA shares were traded at VND 4,800/share. In the last 10 trading sessions, HVA code had 4 sessions of flat price, 3 sessions of increasing price and 3 sessions of decreasing price. In total, in 10 trading sessions, HVA stock price decreased by 9.4%.
Notably, in the history of insider stock transactions at HVA, the company's Chairman of the Board of Directors, Mr. Vuong Le Vinh Nhan, was once punished for violations in the securities sector.
On December 31, 2020, the State Securities Commission Inspectorate issued Decision No. 343/QD-XPVPHC against Mr. Vuong Le Vinh Nhan. Mr. Nhan was fined VND 27.5 million for not reporting on time the reason for not being able to execute stock transactions.
Specifically, Mr. Vuong Le Vinh Nhan, Chairman of the Board of Directors, registered to sell 300,040 HVA shares from May 21, 2020 to June 18, 2020. However, it was not until June 29, 2020 that the Hanoi Stock Exchange received a report on the reason for Mr. Nhan's failure to execute the transaction.
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