After a period of stagnation, the Ho Chi Minh City Stock Exchange (HoSE) recorded many businesses submitting applications and planning new listings.
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| Moc Chau Milk has just been approved to list on the HoSE. Photo: Dung Minh |
Starting to have famous enterprises listed on HoSE
After the shock of the plunge in late 2021 and 2022, the stock market began to recover in 2023 and continued to increase in the first half of 2024, with expectations that foreign capital will soon return to the market as Vietnam is making efforts to upgrade the market, and businesses are forecasting positive business results from a low base in 2023.
In that context, it is not difficult to understand why many businesses have been planning to list or transfer to HoSE to prepare for foreign capital flows when the global economy enters the next expansion cycle.
According to HoSE, since the beginning of the year, 4 enterprises have submitted listing applications. Accordingly, DSC Securities Joint Stock Company (code DSC) submitted a listing application of 204.8 million shares on March 1. DNSE Securities Joint Stock Company submitted a listing application of 330 million shares on March 7. Gelex Electricity Joint Stock Company (Gelex Electric, code GEE) submitted a listing application of 300 million shares on April 24. Hoang Gia Production and Investment Joint Stock Company (code RYG) submitted a listing application of 45 million shares on May 21.
In addition, on May 24, MCM shares of Moc Chau Dairy Cattle Breeding Joint Stock Company (Moc Chau Milk) were approved to transfer from UPCoM to HoSE and will trade the last session on June 13 on UPCoM before officially trading on HoSE.
Since the Covid-19 pandemic, listing activities have been sluggish, mainly focusing on a few individual businesses operating in the real estate or agricultural sectors. Business results and stock prices after listing have shown signs of decline, disappointing investors.
For example, Dat Xanh Real Estate Services Joint Stock Company (code DXS) listed in July 2021, was introduced as the "blockbuster" of the market in 2021. However, since reaching its peak on March 21, 2022 at VND 25,460/share, the price of this stock has continuously decreased and by May 28, 2024 it was only VND 7,900/share, a decrease of 68.97% from the peak, when business results continuously recorded a downward trend after listing.
The case of buying and holding losses on newly listed stocks must include Vinh Hoan Joint Stock Company (VHC). In the third quarter of 2021, it invested VND 38.35 billion in DXS shares, set aside a provision of VND 1.86 billion, and by the end of the first quarter of 2024, it still invested VND 60.27 billion in DXS shares, set aside a provision of VND 26.28 billion, equivalent to a temporary loss of 43.6% of the total portfolio.
Similarly, Khai Hoan Land Group Joint Stock Company (code KHG) was listed in July 2021. From July 20, 2021 to May 28, 2024, KHG's share price decreased by 62.9%, from VND 15,400 to VND 5,720/share. Meanwhile, Khai Hoan Land is recording a decline in profits in 2023 and the first quarter of 2024.
Recently, on December 1, 2023, Siba High-Tech Mechanical Group Joint Stock Company (code SBG) also officially listed its shares on the HoSE. However, like other businesses in the same industry, this unit recorded a decline in business results, with its share price from December 4, 2023 to May 28, 2024 decreasing by 22.1%, from VND 19,250 to VND 15,000/share.
Good games are ahead
In the previous period, the new listings were mainly small and medium-sized real estate enterprises and small companies. After that, the enterprises continuously reported difficult business results, leading to a continuous decline in stock prices, causing losses for investors. However, currently, looking at the list of enterprises that have submitted applications and have been approved for listing, it can be seen that the quality of enterprises has improved and the listing industries have been expanded.
Looking at the list of businesses that have submitted applications and been approved for listing, it can be seen that the quality of businesses has improved and the listing industries have expanded. 
For example, Moc Chau Milk owns a total herd of nearly 26,500 cows, 3 breeding centers with a scale of 1,600 cows, an average productivity of over 25 liters of milk/cow/day and products are available in nearly 1,400 supermarkets such as Aeon, Big C, Winmart... As of March 31, 2024, the Company has no debt, owns cash of VND 1,545.96 billion, accounting for 59.3% of total assets. However, like its parent company Vietnam Dairy Products Joint Stock Company (code VNM), the biggest risk is that Moc Chau Milk is operating in an industry showing signs of saturation, with great competitive pressure between domestic and international dairy companies.
Similarly, Gelex Electric is a leading enterprise in manufacturing electrical equipment in Vietnam and managing and investing in power source projects. In particular, the unit owns many big brands such as Vietnam Electric Cable Joint Stock Company, Electrical Equipment Joint Stock Company, Hanoi Electromechanical Manufacturing Joint Stock Company, EMIC Electrical Measuring Equipment Joint Stock Company, CFT Vietnam Copper Wire Company, Gelex Electricity Trading Joint Stock Company, Gelex Power Generation Company Limited...
In fact, not only have businesses submitted documents, at the 2024 general meeting of shareholders, a series of businesses also revealed their plans to IPO and list their member units. In particular, Hoang Anh Gia Lai Joint Stock Company (code HAG) shared that the business plans to IPO Gia Lai Livestock Joint Stock Company at the end of 2024; Masan Group Joint Stock Company (code MSN) plans to IPO and list Masan Consumer Joint Stock Company (Masan Consumer, code MCH); Hoa Sen Group Joint Stock Company (code HSG), the business plans to IPO the plastic and steel pipe sector...
Mr. Lam Van Van, representative of ECI Capital Investment Fund, stated that in the context of economic difficulties, enterprises that operate effectively will be bright spots in the market. IPOing effectively operating subsidiaries will create new attractive products for the market, thereby helping enterprises easily mobilize capital without having to increase the burden of interest rates, solving capital problems for both subsidiaries and parent companies. In the case of promoting advantages after listing, well-developed subsidiaries will be a "lifebuoy" to gradually recover the parent company.
It can be seen that the fact that large corporations simultaneously choose this time to consider implementing IPOs and preparing listing plans is a vibrant signal for the market.
Source: https://baodautu.vn/hoat-dong-niem-yet-moi-soi-dong-tro-lai-d216419.html
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