Foreign investors have continued their net selling streak for 15 consecutive sessions of HPG shares, with many sessions recording a net sale of more than VND200 billion.
Hoa Phat Group Joint Stock Company (stock code: HPG) shares are under strong pressure due to many factors, including the continuous withdrawal of foreign investors' money. HPG edged up nearly 1.2% in the last session of this week, to VND26,050, but compared to the price range at the beginning of the month, it decreased by more than 4%. Foreign investors have been net sellers for 15 consecutive sessions, marking the longest net selling streak of this stock in more than 2 years.
Foreign investors have initiated a net selling streak at HPG since the beginning of August, when the stock was at VND27,250. Since then, foreign investors have net sold HPG with a total net value of up to VND1,700 billion. In this selling streak, there were 3 sessions in which foreign investors net sold more than VND200 billion, the rest mostly net sold over VND100 billion. In particular, on August 8, this group disbursed less than VND2 billion to buy HPG shares while the selling value was 72 times higher, equivalent to VND134 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 21.1 million shares.
While foreign investors are still selling off their stocks, many domestic securities companies still highly appreciate the price increase prospects of this stock. In a report published a week 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 more than 25% 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, up 25.5% over the same period. Gross profit was over VND 9,401 billion, gross profit margin reached 13.3%. Pre-tax profit in 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 investment plans in the coming time, 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. 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-van-xa-hang-co-phieu-hoa-phat-d223192.html
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