Vietnam Airlines shares hit 19-month peak

HVN shares have just experienced an exciting trading week with 4 strong increasing sessions on high liquidity, bringing the market price to 16,000 VND, the highest price since September 2022.

Despite the market's third consecutive correction, shares of Vietnam Airlines Corporation (stock code: HVN) continued to maintain a state of excitement. Specifically, HVN increased by 6.67% to VND 16,000 in the last trading session of the week, thereby extending the streak of two consecutive sessions of increase to establish the highest price range since the beginning of September 2022. Overall, this week, Vietnam Airlines shares only recorded one session of decrease, the rest increased positively, accumulating 18.5% compared to the end of last week.

HVN's increase helped this stock lead the group of stocks that had the most positive impact on the VN-Index last week. With more than 2.21 billion shares listed on the Ho Chi Minh City Stock Exchange, Vietnam Airlines' market capitalization is about VND35,440 billion.

Not only did the market price fluctuate strongly, the cash flow into Vietnam Airlines shares also improved significantly. Specifically, in the session on April 5, the successful order matching volume reached 4.64 million units, double that of the previous session and the highest level in the past 9 months. The successful transfer volume in this session was equivalent to 73 billion VND.

HVN stock price and liquidity chart.

According to the audited consolidated financial report for 2023, Vietnam Airlines recorded revenue of more than VND92,230 billion, up 30% over the previous year. This is also the third highest revenue figure in the company's history, only lower than the 2018-2019 period when Covid-19 had not yet broken out. The company reported a loss after tax of VND5,631 billion, a significant improvement compared to the previous year's level of more than VND11,220 billion. Currently, the company has an accumulated loss of about VND41,000 billion and negative equity of more than VND17,000 billion.

HVN shares are also under control and restricted from trading as they are only allowed to trade in the afternoon session. This stock also faces the risk of being delisted for violating the conditions of having a loss-making business result for 3 consecutive years, accumulated losses exceeding the actual contributed charter capital and negative equity in the most recent audited financial report.

In the explanation of the roadmap to overcome the situation of controlled shares, Vietnam Airlines' board of directors said that it had completed the restructuring project of the Corporation for the period 2021-2025 and reported to shareholders as well as competent authorities for consideration.

According to the plan, in 2024-2025, Vietnam Airlines will implement synchronous solutions to overcome the situation of consolidated losses and negative equity. The company also expects the domestic and international aviation markets to recover positively, so production and business activities will have more positive results in this period.

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