Shares of Hoa Phat Group rose 1.3% in the first trading session of the week, reaching 32,000 VND, establishing the highest price level since April 2022.
Hoa Phat Group's HPG shares maintained a positive trend for most of the first trading session of the week, at one point reaching 32,150 VND. The increase narrowed towards the end of the session before closing at 32,000 VND, accumulating a 1.3% gain compared to the reference price. This increase brought HPG's share price back to the range established at the end of April 2022, and represents a 17% increase compared to the beginning of this year.
HPG's liquidity topped the Ho Chi Minh City stock exchange on May 20th, with 46.49 million shares changing hands, an increase of over 15 million shares compared to the end of the previous week. The trading value reached VND 1,484 billion, an increase of VND 572 billion and exceeding the combined trading value of the next two stocks, SSI and MSN.
While domestic investors are actively accumulating shares, foreign investors are showing signs of net selling from HPG. Specifically, foreign investors are extending their net selling streak to the second consecutive session with a total value of 100 billion VND.
The rising share price, coupled with high liquidity, propelled HPG into the top 3 stocks contributing most to the VN-Index on May 20th, after BCM and VPB. Hoa Phat's market capitalization currently stands at VND 186,073 billion, making it the largest private corporation on the Vietnamese stock exchange, with its market capitalization only surpassed by four state-controlled enterprises: Vietcombank, BIDV , Viettel Global, and ACV. Specifically on the HoSE exchange, Hoa Phat's market capitalization ranks third after Vietcombank (VND 513,637 billion) and BIDV (VND 282,741 billion).
HPG shares surged ahead of the record date for shareholders entitled to receive additional shares from equity capital. Accordingly, Hoa Phat will issue over 580 million additional shares to existing shareholders, at a ratio of 10% (each shareholder owning 10 HPG shares will receive 1 new share). The issuance sourced from capital surplus of over VND 3,200 billion and undistributed after-tax profits of over VND 2,600 billion.
Following the issuance, Hoa Phat 's charter capital is expected to increase by nearly VND 6,000 billion, from VND 58,100 billion to nearly VND 64,000 billion. Hoa Phat will be the second largest company in terms of outstanding shares on the stock market with 6.4 billion shares, second only to VPBank with 7.9 billion shares.
In a recent analysis report, Agriseco Research's team of experts projected a one-year target price of VND 35,000 for HPG, maintaining their buy recommendation. According to the team, Hoa Phat's business performance will continue to recover strongly thanks to three factors: recovering domestic demand driven by the construction market and increased public investment, export growth, and advantages in its complete value chain and extensive sales network, which will help increase market share.
This year, Hoa Phat Group aims for revenue of VND 140,000 billion and after-tax profit of VND 10,000 billion, representing increases of 16% and 47% respectively compared to 2023. In the first quarter, the group recorded revenue of VND 30,852 billion and after-tax profit of VND 2,869 billion, representing increases of 16% and sevenfold respectively compared to the same period last year. By the end of the first quarter, the company had achieved 22% of its revenue target and 28.7% of its profit target.
Source: https://baodautu.vn/co-phieu-hoa-phat-len-vung-dinh-2-nam-d215635.html
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