Hoa Phat Group shares increased by 1.3% in the first session of the week, to VND32,000, establishing the highest price range since April 2022.
Hoa Phat Group's HPG shares remained green for most of the first trading session of the week and at one point reached VND32,150. The increase narrowed at the end of the session before closing at VND32,000, accumulating 1.3% compared to the reference. This increase brought HPG's market price back to the price range established at the end of April 2022, while increasing by about 17% compared to the beginning of this year.
HPG's liquidity topped the Ho Chi Minh City Stock Exchange in the session of May 20 when 46.49 million shares were traded, an increase of more than 15 million shares compared to the end of last week. The transaction value reached VND1,484 billion, an increase of VND572 billion and greater than the transaction value of the two following codes, SSI and MSN, combined.
While domestic investors are actively buying stocks, foreign investors are showing signs of net withdrawal from HPG. Specifically, foreign investors are extending their net selling streak to the second consecutive session with a total value of VND100 billion.
The rising market price on the basis of high liquidity has put HPG into the group of 3 stocks contributing the most to the VN-Index in the session of May 20, after BCM and VPB. Hoa Phat's capitalization value currently reaches 186,073 billion VND, thereby becoming the largest private corporation on the Vietnamese stock market because its capitalization is only lower than 4 state-owned enterprises: Vietcombank, BIDV, Viettel Global and ACV. On the HoSE alone, Hoa Phat's capitalization is ranked 3rd after Vietcombank (513,637 billion VND) and BID (282,741 billion VND).
HPG shares increased sharply before the closing of the list of shareholders entitled to receive additional shares issued from equity capital. Accordingly, Hoa Phat will issue more than 580 million shares to existing shareholders, at a rate of 10% (each shareholder owning 10 HPG shares will receive 1 new share). The issuance source is taken from the equity surplus of more than 3,200 billion VND, and undistributed profit after tax of more than 2,600 billion VND.
It is expected that after the issuance, Hoa Phat's charter capital will increase by nearly VND6,000 billion, from VND58,100 billion to nearly VND64,000 billion. Hoa Phat will be the enterprise with the second largest number of outstanding shares on the stock market with 6.4 billion shares, only after VPBank with 7.9 billion shares.
In a recent analysis report, the expert team of Agriseco Research forecasts the target price of HPG in the next year at VND35,000, thereby maintaining the buy recommendation. According to this team, Hoa Phat's business results will continue to recover strongly thanks to three factors: domestic demand recovering due to the construction market and increasing public investment, export growth and advantages in the complete value chain as well as a wide sales network to increase market share.
This year, Hoa Phat targets revenue of VND140,000 billion and after-tax profit of VND10,000 billion, up 16% and 47% respectively compared to 2023. In the first quarter, the group recorded revenue of VND30,852 billion and after-tax profit of VND2,869 billion, up 16% and 7 times respectively compared to the same period. By the end of the first quarter, the company had completed 22% of the revenue plan and 28.7% of the profit plan.
Source: https://baodautu.vn/co-phieu-hoa-phat-len-vung-dinh-2-nam-d215635.html
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