DCM stock hits ceiling in first session of the week

Shares of Ca Mau Petroleum Fertilizer Joint Stock Company (stock code: DCM) hit the ceiling price in the first session of the week, up to VND40,100, establishing the highest price range since June 2022 with extraordinary liquidity.

DCM shares of Ca Mau Petroleum Fertilizer Joint Stock Company maintained green throughout the trading session at the beginning of the week. Strong demand before closing brought the stock price to the ceiling of VND40,100, accumulating VND2,600 compared to the reference price. This is the highest price range in the past 2 years, and increased by about 31% compared to the price range of VND30,700 at the beginning of the year (calculated according to adjusted price).

DCM closed the first session of the week with no sellers, and the remaining buy volume at the ceiling price was more than 760,000 shares. The massive cash flow helped the matched value skyrocket to VND680 billion, nearly 3 times higher than the session at the end of last week. The volume of shares changed hands reached more than 17.2 million units, ranking fourth on the Ho Chi Minh City Stock Exchange, after DXS, VRE and HPG. This is also the highest liquidity of this code since March 2022.

After 4 consecutive selling sessions, foreign investors returned to net buying 2 million DCM shares today, equivalent to a net value of nearly VND82 billion. The value of foreign investors' purchases of DCM shares is second only to VNM, thereby contributing to the list of stocks with the most positive impact on the VN-Index.

DCM's increase was in line with the performance of fertilizer stocks. Other stocks such as BFC also hit their ceilings, while DPM and DGC increased by 3.7% and 1.8%, respectively, compared to the reference price.

Price and liquidity chart of DCM stock from the beginning of the year until now.

DCM's current price of VND40,100 is still lower than the forecast of some analysis groups. Typically, in the report at the end of June, DSC Securities Company expected the target price of this stock this year to be VND43,000.

According to this analysis group, the driving force for DCM's stock price increase comes from the fact that this company is likely to exceed its business plan with revenue of about VND14,560 billion and after-tax profit of VND1,554 billion, up 16% and 40% respectively compared to last year. The company has supporting factors such as the market share in the Central Highlands and Southeast regions expected to break through thanks to the acquisition of the KVF plant, urea prices expected to continue to rise due to tight supply and factors such as reduced depreciation costs, increased proportion of domestic natural gas, and the revised VAT law will support profits.

“DCM will exceed its 2024 business plan with the company's prospects from urea prices continuing to increase from the second half of 2024 with an estimated increase of about 5-8% compared to the present. The prospect of expanding domestic and export NPK market share in the ASEAN group and factors such as reduced factory depreciation, amended VAT law and reduced risks in input gas prices will help the company's net profit increase by about 35-40% compared to the same period,” said the DSC expert.

With a more optimistic view, Mirae Asset Vietnam Securities Company forecasts DCM's target price for the next 12 months at VND45,000. The company's experts said fertilizer prices will improve in 2024 in the context of Russia and China banning fertilizer exports until the end of May, causing a shortage of supply.

Ca Mau Petroleum Fertilizer Joint Stock Company set a target of VND11,878 billion in consolidated revenue and VND794.8 billion in after-tax profit this year. The parent company's equity reached VND9,850 billion. The board of directors said the company has accumulated cash flow to serve production and business, so there is no plan to increase capital to expand production.

In the first quarter, the company recorded revenue of VND2,885 billion, up nearly 2% over the same period last year. Pre-tax profit reached more than VND382 billion and after-tax profit was approximately VND350 billion, up 46% and 52% respectively over the same period last year. Total assets as of the end of the first quarter reached VND15,743 billion, up slightly from VND15,237 billion at the beginning of the year. Liabilities were more than VND5,452 billion, most of which were short-term debts.

At the annual meeting late last month, DCM's Board of Directors announced that it would allocate approximately VND1,059 billion to pay cash dividends at a rate of 20%. The last registration date to receive dividends is June 25 and payment will be made on July 11.

In response to some questions about the low dividend rate while the amount of cash held and profit plan, Mr. Van Tien Thanh - General Director of Ca Mau Petroleum Fertilizer Joint Stock Company shared that with the specific business characteristics in the fertilizer sector with only a profit margin of 8-12%, the annual dividend rate as in previous years is also reasonable.

Source: https://baodautu.vn/co-phieu-dcm-cham-tran-trong-phien-dau-tuan-d219562.html