A series of 4 price reduction sessions 'blew away' 20% of Vocarimex's (VOC) market price
In the past few days, VOC shares have experienced 4 consecutive sessions of price loss on the UpCOM floor. Specifically, in the trading session on October 6, VOC still maintained the price of 27,000 VND/share.
However, in the following 4 consecutive trading sessions from October 9 to October 12, VOC continuously lost value. Recorded on October 12, 2023, VOC stock price was only 21,600 VND/share, losing 20% of its value in just 4 days.
This price has brought VOC back to the bottom level it created in mid-August. However, the downtrend has not shown any signs of stopping as selling pressure is still overwhelming.
VOC's series of price reductions took place right after the company closed the last registration date for cash dividend payment. Accordingly, on October 10, 2023, VOC closed the registration date for cash dividend payment at a rate of 30% (equivalent to each shareholder owning 1 share receiving 3,000 VND in dividends).
Besides, Vocarimex's business situation is also an issue of concern to many shareholders as this unit has experienced its fourth consecutive quarter of gross losses.
4 consecutive quarters of gross loss, Vocarimex is operating below cost price
Converted to a joint stock company in 2014, the main shareholder of Vocarimex is currently Kido Group with 87.3% ownership of charter capital. This is also the unit that benefits the most when Vocarimex makes the decision to pay "heavy" dividends despite business losses.
Over the past year, Vocarimex has witnessed fluctuations in revenue. In the third quarter of 2022, the company's revenue reached 453 billion VND, increasing to 599.7 billion in the fourth quarter of 2022.
Vocarimex (VOC) has suffered a gross loss for 4 consecutive quarters due to operating below cost price (Photo TL)
Entering the first quarter of 2023, revenue plummeted to only 195 billion VND and only recovered to 474.7 billion VND in the second quarter of 2023. Also in these 4 consecutive quarters, VOC continuously operated below cost price, causing the company to incur a gross loss. Peaking in the fourth quarter of 2022 and the second quarter of 2023, Vocarimex's gross loss was 148.4 billion VND and 109.1 billion VND, respectively.
In the second quarter of 2023, financial revenue dropped to only VND 29.3 billion. The reason is that the company no longer recorded the trillion-VND profit from divesting from Calofic. Sales expenses and administrative expenses were recorded at VND 6 billion and VND 6.8 billion, respectively.
In the second quarter, Vocarimex had a net operating loss of VND93.5 billion and a post-tax loss of VND75.1 billion. With a loss in business, most of the dividends paid by VOC to shareholders came from the profit from selling shares at Calofic.
Receivables increase sharply, who is Vocarimex lending money to?
At the end of the second quarter of 2023, Vocarimex's total assets increased sharply to VND 2,832.8 billion thanks to the extraordinary profit from selling shares at Calofic. Cash increased sharply from VND 66.5 billion to VND 413.4 billion.
Short-term receivables also increased 5.3 times, to VND1,800.6 billion. Of which, receivables from short-term loans increased from VND70 billion to VND1,370 billion. According to the financial statement explanation, this is the source of money that VOC lends to other units on a short-term basis.
Notably, Vocarimex is lending ATO Investment JSC VND 640 billion; Nhat Vinh Food Company Limited VND 360 billion; Saigon Truong Luu Thuy JSC VND 300 billion. All three loans are due in October 2023.
Source
Comment (0)