Foreign investors break 10 consecutive sessions of net selling of Hoa Sen shares

Foreign investors break 10 consecutive sessions of net selling of Hoa Sen shares

Foreign investors net bought more than 8 billion VND worth of HSG shares in the session on September 18 after a series of tireless selling for 10 consecutive sessions.

Shares of Hoa Sen Group Joint Stock Company (stock code: HSG) closed today's trading session at VND20,100, up slightly by 0.5% compared to the reference price. Thanks to the active disbursement of foreign capital, HSG continued to increase points for the second consecutive session.

Specifically, of the 9.28 million HSG shares traded in today's session, foreign investors traded more than 432,000 shares. This group disbursed VND8.3 billion to buy 416,500 shares, while the selling volume was 16,000 shares, equivalent to nearly VND320 million. The net buying value accordingly reached VND8 billion, thereby cutting the net selling streak that has lasted since the beginning of September 2024.

In this net selling series, the peak selling session was on September 5 when the net selling value reached over VND75 billion, while foreign investors disbursed less than VND800 million. The session on September 13 recorded the lowest disbursement when foreign investors only poured VND52 million to buy HSG shares.

In general, foreign investors have net sold HSG shares with a total net value of up to 305 billion VND since the beginning of September.

HSG's market price has had alternating up and down sessions since foreign investors aggressively sold off. This stock slightly decreased by 4% compared to the first session of the chain and lost nearly 21% compared to the 2-year peak set in July 2024 (VND25,350). The average matched volume in the last 10 sessions was more than 9.2 million shares.

In terms of business activities, in the third quarter of the 2023-2024 fiscal year (from April 1, 2024 to June 30, 2024), Hoa Sen recorded net revenue of VND 10,840 billion, an increase of 25.4% over the same period. Gross profit during this period was approximately VND 1,337 billion, an increase of 50% compared to VND 892 billion in the same period last year. Gross profit margin reached 12.3%, an increase of 2 percentage points over the same period.

After deducting expenses, the company's pre-tax profit was over VND287 billion and after-tax profit was VND273 billion, respectively 22.5 times and 18.3 times higher than the same period.

Accumulated in the first 9 months of the fiscal year (from October 1, 2023 to June 30, 2024), Hoa Sen recorded net revenue of VND 29,163 billion, an increase of 23.8% over the same period. Gross profit was approximately VND 3,405 billion, an increase of 71% over the same period last year. Profit margin was nearly 11.7%. The company reported pre-tax profit of VND 717 billion and after-tax profit of VND 696 billion, while in the same period, it lost VND 352 billion and VND 410 billion, respectively.

In the 2023-2024 fiscal year, Hoa Sen plans to do business with two scenarios. Specifically, scenario 1 targets a sales output of 1,625 thousand tons, up 13.3% over the same period. Revenue is expected to be 34,000 billion VND, up 7.4% over the same period, and after-tax profit is expected to be 400 billion VND, up more than 12 times over the previous fiscal year.

Scenario 2 targets an estimated total consumption output of 1,730 thousand tons, up 20.7% over the same period. Revenue is expected to reach VND36,000 billion, up nearly 14%, and after-tax profit is expected to reach VND500 billion, up more than 15 times over the previous fiscal year.

Thus, at the end of the first 9 months of the fiscal year, Hoa Sen completed 87.2% of the revenue plan according to scenario 1 and 82.4% according to scenario 2. Profits accordingly reached 174% and 139% of the fiscal year target, respectively.

According to an analysis report by KB Securities Vietnam (KBSV) published half a month ago, in the short term, Hoa Sen 's export output will be negatively affected when the demand for imported steel and galvanized steel weakens due to the application of defense measures in the US and EU markets. This increases the cost of importing steel into these markets.

In the long term, export prospects will be less affected as the price difference between HRC in the US and EU and Vietnam remains at 10% or more. In addition, the import tax on steel from Vietnam is lower than that of China, creating an incentive to promote galvanized steel exports.

KBSV experts recommend investors to be neutral with a target price of VND 22,600/share, corresponding to a return of 12.4% compared to the current price.

Source: https://baodautu.vn/khoi-ngoai-ngat-chuoi-ban-rong-co-phieu-hoa-sen-10-phien-lien-tiep-d225272.html