After 22 sessions of net selling of Hoa Phat (HPG) shares, foreign investors returned to net buying nearly 4.26 billion VND in this weekend session.
Shares of Hoa Phat Group Joint Stock Company (stock code: HPG) closed the last trading session of the week (September 6) at VND25,400, up 1.4% compared to the reference price. Thanks to the active foreign capital flow into this stock, HPG closed in the green after a series of 7 consecutive sessions of decline.
Specifically, of the 22.85 million HPG shares traded during the weekend session, foreign investors traded about 8.5 million shares. This group spent VND108 billion to buy nearly 4.32 million shares, while the selling volume was approximately 4.15 million shares, equivalent to nearly VND103.8 billion. The net purchase value accordingly reached VND4.26 billion.
Today's trading session marked the return of foreign investors to net buy Hoa Phat shares after a period of intense selling since August 5. Foreign investors net sold the leading stock in the steel industry with a total net value of up to VND2,530 billion.
In the 22 consecutive selling sessions, there were 4 sessions with foreign net sales of more than VND200 billion, the rest were mostly over VND100 billion. The peak net selling session in this series was on August 22, when the value of selling reached more than VND245 billion. The session on August 8 recorded the lowest disbursement value in this selling session when foreign investors only bought less than VND2 billion.
HPG's market price has had alternating ups and downs since foreign investors aggressively sold off. This stock has decreased by about 7% compared to the first session of the chain and lost more than 20% compared to the 2-year peak set in May 2024 (VND 32,000). The average matched volume in the last 10 sessions is about 20 million shares.
At a time when Hoa Phat shares were being sold off by foreign investors, many domestic securities companies still highly appreciated the prospect of this stock's price increase. In a report published more than half a month ago, a group of experts from Agribank Securities Joint Stock Company (Aseco) recommended increasing the proportion of HPG shares with a target price of VND32,000/share. This projection is an increase of 26% compared to the current price range.
Agriseco Research expects HPG's business results to continue to recover thanks to the momentum from the domestic real estate market and increased public investment. This assessment is based on the expectation that HPG's consumption output will continue to improve with the contribution from domestic construction steel and gross profit margin is expected to improve thanks to the decrease in input material prices.
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.
Besides 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 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. The majority of the company's debt structure was short-term with over VND73,551 billion. Owner's equity reached VND108,676 billion, undistributed profit after tax was approximately VND40,474 billion.
Source: https://baodautu.vn/khoi-ngoai-cat-chuoi-ban-rong-co-phieu-hoa-phat-d224221.html
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