Angimex leaders explain why stock prices have increased to the ceiling for 5 consecutive sessions

Angimex said that storms and floods caused heavy damage to the northern rice fields, combined with the risk of food shortages, making investors increase their expectations for the company's stock price.

An Giang Import-Export Joint Stock Company (Angimex - stock code: AGM) has just sent a document to the Ho Chi Minh City Stock Exchange ( HoSE) explaining that AGM shares had a series of ceiling price increases for 5 consecutive sessions, lasting from September 10 to September 16.

According to Angimex, Vietnam's rice export situation remains favorable due to increased import demand from traditional customers. However, India's consideration of easing its rice export policy is a factor causing many fluctuations in the rice market at the end of this year. In addition, super typhoon Yagi caused severe damage to rice and corn in the northern provinces, the risk of food shortages leading to fluctuations in domestic prices has increased investors' expectations.

The company said that AGM's stock price has continuously increased due to supply and demand in the stock market and investors' decisions beyond the company's control. Angimex affirmed that it has no impact on the stock price in the stock market.

The series of 5 consecutive ceiling increases brought the market price of this stock from 2,850 VND to 3,960 VND, equivalent to an increase of 39%. This morning (September 17), AGM continued to extend the excitement when it increased to 4,230 VND. The average matched volume in the last 10 sessions reached more than 124,000 units per session. The market capitalization is about 77 billion VND.

At the end of August 2024, HoSE decided to put AGM under control from September 10 due to accumulated losses exceeding the actual contributed charter capital in this year's semi-annual consolidated financial report.

In a written explanation on September 11, Mr. Huynh Thanh Tung, General Director of Angimex, said that the company is implementing many solutions to remove the shares from control. Specifically, Angimex continues to seek professional securities investors to carry out procedures for issuing individual shares to increase the scale of equity, thereby supplementing working capital for production and business activities and overcoming the situation of accumulated losses exceeding the actual contributed charter capital.

In addition, the company also carried out comprehensive restructuring through optimizing the management apparatus, streamlining personnel, urging the collection of bad debts and liquidating assets.

Angimex's board of directors is also considering issuing private shares to convert bond debt into shares for bondholders, thereby increasing charter capital and improving the financial situation. The board of directors added that to overcome the situation of controlled shares, the company will explain and report the situation quarterly and will not violate regulations on information disclosure on the stock market.

In the first half of this year, Angimex recorded revenue of VND151 billion, down more than half compared to the same period last year. Most of the revenue came from the sale of food and rice seeds. During this period, the company no longer recorded revenue from the sale of spare parts and motorbikes.

The company's gross profit was less than 1 billion VND, so after deducting a series of expenses such as interest, sales, business management , etc., the company reported a loss after tax of up to 99.4 billion VND, while in the same period last year this figure was less than 58 billion VND. The heavy loss in the first half of the year increased the undistributed accumulated loss to 259 billion VND, thereby causing negative equity of 77 billion VND.

The company's total assets currently reach VND1,165 billion, a slight decrease compared to the beginning of the year. Liabilities exceed assets by up to VND1,242 billion, most of which are short-term debts.

Angimex set a target of VND1,742 billion in revenue and VND5 billion in pre-tax profit this year. This target is much better than the business results of last year when revenue was only VND788 billion and pre-tax loss was more than VND221 billion.

Angimex was once considered a member of Mr. Do Thanh Nhan’s “Louis ecosystem”. After Mr. Nhan was arrested in mid-2022, the company had many high-level leadership changes and its stock price plummeted from the peak of over 60,000 VND to the current level.

Source: https://baodautu.vn/lanh-dao-angimex-giai-trinh-co-phieu-tang-tran-5-phien-lien-tiep-d225115.html