Foreign investors aggressively dumped HPG shares in the last session of September 2024 with a net selling value of more than VND 291 billion, the highest since March 2023.
Shares of Hoa Phat Group Joint Stock Company (stock code: HPG) closed the last trading session of the month at VND26,350, up 1.15% compared to the reference price despite foreign investors tirelessly selling their stocks.
Specifically, of the 37.4 million HPG shares traded on September 30, foreign investors accounted for about 14.7 million shares. This group sold 12.85 million shares, equivalent to nearly VND340 billion, while only disbursing VND48 billion to buy 1.83 million shares. The net selling value accordingly reached VND291 billion, marking the strongest selling session in nearly 18 months.
Yesterday, HPG was the leading stock on the Ho Chi Minh City Stock Exchange in terms of both volume and value of foreign investors selling. This was also the fifth consecutive net selling session of foreign investors, thereby increasing the value of selling to more than VND500 billion.
In the foreign selling chain, HPG mostly closed in green. The average matched volume in the last 10 sessions was over 24 million shares.
In a report published half a month ago, a group of experts from MB Securities Joint Stock Company (MBS) recommended increasing the proportion of HPG shares with a target price of VND33,500. This projection is 27% higher than the current price range.
MBS believes that this is the right time to accumulate HPG shares for long-term goals because negative factors have been mostly reflected in the stock price. From the fourth quarter of 2024, the group of experts expects steel prices to improve thanks to the gradual reduction of pressure from Chinese steel. In addition, the imposition of anti-dumping tax and the operation of Dung Quat 2 project are bright spots that will boost the net profit of the leading steel enterprise in 2025-2026.
According to the Vietnam Steel Association, the construction industry grew by 7.34% in the first half of the year compared to the same period last year, and the real estate market in the second quarter of this year continued to show signs of recovery in supply. In addition, the Land Law, Housing Law, and Real Estate Business Law, which took effect from August 1, are expected to help increase domestic demand for construction steel.
Regarding business performance, in the first half of the year, Hoa Phat recorded net revenue of approximately VND 70,408 billion, an increase of 25.5% over the same period. Gross profit was over VND 9,401 billion, gross profit margin reached 13.3%. Pre-tax profit during this period reached VND 6,994 billion, after-tax profit was about VND 6,189 billion, both more than 3 times higher than the first 6 months of 2023.
HPG's Board of Directors believes that the Vietnamese and global economies still have many unknowns, with unclear signs of recovery, fluctuations in exchange rates, interest rates and other factors in the world market. The company targets revenue of VND 140,000 billion and after-tax profit of VND 10,000 billion, up 16% and 47% respectively compared to 2023. After half a year, the company has completed 50.3% of the business plan and 62% of the profit target.
Previously, Hoa Phat issued 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 was taken from the surplus of equity capital of more than 3,200 billion VND, and undistributed profit after tax of more than 2,600 billion VND.
After the issuance, Hoa Phat's charter capital increased by nearly VND6,000 billion, from VND58,100 billion to nearly VND64,000 billion. Hoa Phat became 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.
Regarding future investment plans, Chairman of the Board of Directors Tran Dinh Long said that Hoa Phat has to do difficult work. Currently, the company is researching the production of silicon steel to serve the production of electric motors used in transformers and electric vehicles. Next to that, it is making steel for railway tracks.
In addition to the Dung Quat 2 Project which is being urgently built, Hoa Phat Group is also planning to invest in a new steel complex in Phu Yen - called the Dung Quat 3 Project with an investment scale of 5 billion USD.
By the end of June, the company's total assets reached VND206,609 billion. Liabilities were over VND97,932 billion, an increase of nearly VND13,000 billion compared to the beginning of the period. Owner's equity reached VND108,676 billion, and undistributed profit after tax was approximately VND40,474 billion.
Source: https://baodautu.vn/khoi-ngoai-ban-rong-hpg-manh-nhat-trong-vong-18-thang-d226261.html
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