Steel company shares hit ceiling for 11 sessions, leader says there is no abnormality

Workers working in Vicasa-Vnsteel factory – Photo: Company website

On November 27, Vietnam Steel Corporation approved the plan to sell all shares in Vicasa-Vnsteel Company (HoSE: VCA), equivalent to 65% of capital.

Then, from the trading session on November 28 to December 12, VCA Steel Company's shares hit the ceiling for 11 consecutive sessions and closed with no sellers.

Meanwhile, the volume of remaining buy orders at the ceiling price is always very high, about 50,000 shares.

VCA's trading liquidity was not high in the past due to its relatively concentrated shareholder structure, when Vietnam Steel Corporation held a large number of shares.

Typically, in November, VCA recorded 12 sessions in which no shares were successfully transferred.

However, in December, liquidity exploded when each session matched no less than 10,000 shares.

In particular, in today's trading session (December 12), the volume of buy orders reached 423,000 shares. More than 263,000 of these shares were successfully matched.

Vicasa-Vnsteel representative, Mr. Ngo Tien Tho - general director of the company - explained that the fluctuations in VCA stock price are entirely determined by market supply and demand.

Investors' decisions regarding VCA are not within the control of the company. The company's production and business activities remain stable, with nothing unusual.

“The company does not participate, intervene or take any action that could affect stock price fluctuations in the market,” Mr. Tho stated in an official dispatch explaining to the State Securities Commission.

Mr. Ngo Tien Tho was elected as General Director of Vicasa-Vnsteel from the beginning of August 2024. Two months later, he became a member of the company's Board of Directors for the 2023-2028 term after the extraordinary congress.

Mr. Tho was born in 1979, used to be a metallurgical engineer at Thu Duc Steel Factory, started working at Vicasa-Vnsteel since 2017.

Mr. Tho personally does not own VCA shares and is representing 15% of the capital of Vietnam Steel Corporation.

Vietnam Steel Corporation plans to publicly auction 65% of its equity at Vicasa, with the lowest price of VND24,158/share.

Participants are domestic investors, completion time from Q4-2024 to Q1-2025.

As soon as this information was announced, VCA code increased to 9,090 VND/share in the session of November 28.

In addition to Vietnam Steel Corporation, Vicasa-Vnsteel also has a major shareholder, Da Nang Steel Company, which owns 7.14%.

Regarding business results, decreased sales volume and selling prices caused the company's net revenue in the third quarter of 2024 to decrease by nearly 2% over the same period.

Along with that, management costs increased due to the adjustment to reduce the allocation of land rent and severance allowance.

Accumulated in the first 9 months of the year, Vicasa-Vnsteel recorded a negative pre-tax profit of nearly 1.9 billion VND and a net loss of more than 1.5 billion VND, while in the same period last year, it made a profit of more than 3.5 billion VND.

Vicasa-Vnsteel was established in 1967, headquartered in Bien Hoa, Dong Nai. The company plans to have pre-tax profit of about 8 billion VND this year.

Source: https://tuoitre.vn/co-phieu-cong-ty-thep-tang-tran-11-phien-lanh-dao-noi-khong-co-bat-thuong-20241212185422537.htm