After the ghost month, real estate stocks continue to experience fluctuations.

Construction Development Investment Corporation (DIC Corp, stock code: DIG) has just announced its audited semi-annual financial report for 2024, recording net revenue of VND 635 billion (down more than VND 180 billion compared to the self-prepared report), up 77% over the same period last year.

After deducting expenses, DIC Group's pre-tax profit only reached 21.5 billion VND, down 55% compared to the self-made report.

However, compared to the same period last year, DIC Corp's profit decreased by more than 95%. The reason is that financial revenue decreased by more than 5 times compared to the same period last year, down to 34.8 billion VND while other expenses increased sharply.

DIG stock price fluctuations in recent times, currently at 22,800 VND/share Source: Fireant

In 2024, DIC Corp set a sky-high target of VND 2,300 billion in revenue and VND 1,010 billion in pre-tax profit, 6 times higher than the previous year's results.

However, after half a year, this business has only achieved 28% of its revenue target and only 2% of its profit target.

The previous year, DIC Corp also set a profit target of trillions but ultimately failed to achieve it.

Before this information, DIG stock price continued to decrease by nearly 2% in the morning session of September 4 to 22,800 VND/share.

Recently, DIC Group shareholders have continuously encountered many big shocks such as the death of former Chairman of the Board of Directors of DIC Corp Nguyen Thien Tuan on August 10.

On August 12, two securities companies, Shinhan Securities Co., Ltd. and Mirae Asset Vietnam Securities JSC, announced that they had sold 5.3 million DIG shares of Mr. Tuan.

Following that, the Government Inspectorate announced the inspection conclusion on law compliance in equitization and divestment of state capital at the Development Investment - Construction Company (now DIC Corp).

The conclusion shows that the Ministry of Construction's use of Decree 187/2004 of the Government to develop a plan for equitization of enterprises is not in accordance with regulations.

Decision 1094/QD-BXD of the Ministry of Construction approving the value of equitized enterprises based on the examination of the determination of enterprise value by the Department of Financial Planning (Ministry of Construction) without being examined by the Equitization Steering Committee is not in accordance with the guidance of the Ministry of Finance and Decree 109/2007 of the Government.

"The above limitations, shortcomings and violations led to a number of procedures not being carried out according to regulations: The Investment Development - Construction Joint Stock Company did not prepare a land use plan; did not determine the value of geographical location advantages for leased land as urban land to calculate into the enterprise value" - the inspection conclusion stated.

The Government Inspectorate discovered that the consulting unit - Vietnam Appraisal and Valuation Joint Stock Company (VIVACO) incorrectly determined the investment capital and original price of two construction works on the land. That led to a difference in the assessed asset value decreasing by nearly 2.5 billion VND.

VIVACO did not re-determine the land use rights value of 25 villas in Phuong Nam Villa Area, which is not in accordance with Government regulations....

In the market, after peaking at VND34,000/share in mid-April 2024, DIG shares continuously fell to less than VND22,000/share in mid-August. From the bottom, DIG skyrocketed to nearly VND26,000/share on August 28. However, this stock later disappointed many investors when it continuously adjusted and is now only VND22,800/share.

Compared to the beginning of 2024, this stock has decreased by nearly 15%, but compared to its golden age when it was over 100,000 VND/share, DIG stock has "evaporated" nearly 5 times.

Source: https://nld.com.vn/het-thang-co-hon-co-phieu-bat-dong-san-van-lien-tuc-gap-bien-co-196240904121637678.htm