Another major shareholder appears to acquire shares of Nam Bay Bay (NBB)
Nam Bay Bay (NBB) is currently a unit related to the ecosystem of Ho Chi Minh City Infrastructure Construction Investment Joint Stock Company (CII). In which, CII Infrastructure Construction Joint Stock Company has just registered to buy an additional 4.2 million NBB shares, increasing the ownership ratio from 7.82% to 12.02% of charter capital, trading time from October 12 to November 10.
This transaction will increase CII Infrastructure Construction JSC's ownership ratio at NBB to 49.62% of charter capital. At the end of the second quarter of 2023, CII's group of subsidiaries also owned 89.3% of NBB's charter capital.
Despite a 99.7% drop in business results, another major shareholder has appeared to acquire shares of Nam Bay Bay (NBB). Photo TL
In addition, My Steel Trading and Services Company Limited has just registered to buy an additional 486,622 NBB shares, increasing its ownership ratio from 4.72% to 5.2% of charter capital. The transaction was made on October 20. Thus, My Steel has officially become a major shareholder of NBB after this transaction.
My Steel Trading and Service Company Limited was established in 2015, the legal representative is Mr. Doan Thanh Vu. The company address is located at Hamlet 4, Long Dinh Commune, Can Duoc District, Long An Province.
Before the above NBB stock acquisition transactions, NBB shares have had a very strong recovery since the beginning of October. Specifically, NBB code has increased from the bottom of VND 17,600/share on October 5, 2023 to VND 21,500/share on October 25, 2023, equivalent to an increase of 22% in just 20 days.
NBB’s price movements and share acquisitions took place amid the company’s lackluster business performance, causing many investors to question these transactions.
Profits have dropped sharply in the past 6 months, with only symbolic profits reported for many consecutive quarters.
Regarding the business situation of Nam Bay Bay, since the fourth quarter of 2021, this company has continuously reported quarterly profits at a low level of 1-2 billion VND. This is in complete contrast to the profit of hundreds of billions of VND per quarter that NBB previously achieved.
Only in the fourth quarter of 2022, NBB recorded a profit after tax of VND 15.6 billion. However, this profit level is still less than 1/10 compared to the peak level in the quarters of 2021.
In the second quarter of 2022, NBB's revenue reached VND93.4 billion, down 76.1% year-on-year. Gross profit was VND47.7 billion, down 66.5%. Profit after tax was only recorded at VND410 million, down 99.7% year-on-year.
NBB's accumulated revenue in the first 6 months of the year reached 193.8 billion VND, up 15% over the same period. Consolidated profit after tax only reached 449 million VND, down 75% over the same period.
According to Nam Bay Bay's explanation, the main reason for the decrease in consolidated profit after tax is the return of business premises at Carina Shopping Mall by some units in the early period of 2023. This situation leads to a decrease in revenue and a decrease in business profits from this service segment.
Inventory increased sharply, located mainly in De Lagi project and Son Tinh Residential Area - Quang Ngai
At the end of the second quarter of 2023, NBB's total assets reached VND 7,179 billion, up 12.4% over the beginning of the period. Of which, cash and cash equivalents increased sharply to VND 185.8 billion.
Notably, the inventory increased from VND 1,355.5 billion to VND 1,551.9 billion. The increase is equivalent to a 14.5% increase. Most of the inventory is in the form of unfinished real estate of 2 large projects including:
The De Lagi high-end resort and residential project accounts for 791 billion VND; the Son Tinh - Quang Ngai residential project accounts for 610.2 billion VND.
In NBB's capital structure, payables account for VND5,358.8 billion. Short-term loans and financial leasing debts account for VND824.5 billion, down from the beginning of the period. In addition, the company is also borrowing long-term debts of more than VND3,044.1 billion, up one and a half times compared to the beginning of the year.
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