HBC shares skyrocketed in the last session on HoSE

At the end of the last trading session on the Ho Chi Minh City Stock Exchange (HoSE), HBC shares increased by 5.5% compared to the reference price, to VND5,750 and appeared in the list of 10 stocks with the most positive impact on the market.

Shares of Hoa Binh Construction Group Corporation (stock code: HBC) closed the session on September 5 at VND5,750, up 5.5% compared to the reference and included in the list of stocks with the most positive impact on VN-Index. HBC's market price has increased in 6 out of the last 7 trading sessions and accumulated 24% compared to the nearly 9-year low (VND4,630) recorded in the session on August 12.

Not only did HBC go against the market trend in terms of increasing amplitude, its trading volume in today's session also fluctuated strongly. HBC matched 2.9 million shares, an increase of more than 660,000 units compared to the previous session and extended the streak of 7 consecutive sessions with a trading volume exceeding 1 million shares. Today's trading value reached 16.3 billion VND, an increase of 4.2 billion VND compared to the previous session.

Previously, HBC experienced 4 floor-price sessions after HoSE announced information about the mandatory delisting on July 26. The series of floor-price sessions brought the market price at that time from 7,250 VND to 5,130 VND.

During this decline, HBC recorded a sharp increase in liquidity, especially in the last session of July when major shareholder Hyundai Elevator Co., Ltd. sold 5 million shares. After this transaction, Hyundai Elevator Co., Ltd. reduced its ownership in HBC from 8.08% of charter capital (28.06 million shares) to 6.64% of charter capital (23.06 million shares).

According to HoSE's decision, HBC will be delisted from September 6 due to its undistributed profit after tax as of December 31, 2023 being negative VND3,240 billion, exceeding the company's actual contributed charter capital of VND2,741 billion. This stock will be transferred to trading on UPCoM from September 10.

Upon receiving the notice of delisting at the end of July, HBC responded in writing to the management agency and said it did not agree with the grounds for HoSE to compulsorily delist HBC shares of this enterprise . Mr. Le Viet Hai, Chairman of Hoa Binh Construction Group, cited the reasons for the objection as Decree 155 does not provide details on considering the conditions of accumulated losses on the consolidated audited financial statements, or on the separate audited financial statements. Currently, there are no legal documents from any competent authority guiding the application or interpretation of the law in this case.

The company's charter capital is VND2,741 billion, while the after-tax profit in the 2023 audited financial statements is negative VND2,401 billion and in the 2023 audited consolidated financial statements is negative VND3,240 billion. Thus, the total accumulated loss of HBC in the audited financial statements has not exceeded the charter capital. In addition, Mr. Hai said that HoSE's consideration of delisting HBC shares based on previous precedents is not in accordance with current law.

Regarding the business situation, in the first half of 2024, Hoa Binh Construction's audited net revenue reached VND3,812 billion, up slightly from the previously announced VND3,811 billion. The company reported a revised gross profit of VND105 billion, down 13% from the VND121 billion in its self-made report. The difference comes from the parent company's adjustment of data related to the classification of cost of goods sold and other income.

Financial income increased after auditing due to the parent company recording additional interest on late payments from customers, from VND 160 billion to VND 195 billion. Other profits also fluctuated strongly, increasing from VND 518 billion to VND 555 billion after auditing due to upward adjustments at the parent company and at the subsidiary related to receivables from investors . An Hai bridge project .

This is the main reason why the company's after-tax profit increased from VND 740 billion to VND 830 billion after auditing, an increase of VND 90 billion.

Compared to the total revenue target of VND10,800 billion (up 43.3% over the same period) and after-tax profit of VND433 billion set at this year's general meeting of shareholders, Hoa Binh Construction has completed 35.3% of the revenue plan and exceeded 91.6% of the profit target.

As of the end of June, Hoa Binh Construction's total assets reached VND15,790 billion, an increase of VND540 billion compared to the beginning of the year and an increase of VND158 billion compared to the self-reported report. Short-term items accounted for VND14,169 billion in the company's asset structure. Of which, the company's cash and cash equivalents were nearly VND305 billion.

As of June 30, 2024, the company had an accumulated loss of VND2,403 billion and some overdue debts. “These signs indicate the existence of material uncertainties that may cast doubt on Hoa Binh Construction’s ability to continue as a going concern,” the auditors said in the financial report.

Source: https://baodautu.vn/co-phieu-hbc-tang-vot-trong-phien-cuoi-cung-tren-san-hose-d224131.html