Nam Mekong (VC3) inventory of 1,877 billion at Bao Ninh 2 stocks lost 21%

VC3 shares lost 21% in just 6 months

It was hoped that it would recover in the second half of 2023 with the Bao Ninh 2 project, but it seems that the stock price movements of Nam Mekong (VC3) show the opposite.

VC3 code once peaked at nearly 30,000 VND/share at the end of May 2023, but then continuously had sessions of price decline.

mekong VC3 stock 1877 billion at bao ninh 2 shares lost 21% in half year picture 1 — Inventory at Bao Ninh 2 still accounts for VND 1,877.5 billion in the asset structure of Nam Mekong (VC3) (Photo TL)

Although there were intermittent recoveries to the price range of VND 27,500/share at the end of August, it was still difficult to push VC3's market price back to the peak reached at the end of May.

In the trading session on November 15, 2023, VC3 code had a slight increase, trading at 23,900 VND/share. Compared to the peak reached at the end of May, VC3 has lost 21% in price after only 5 months.

9 months only completed 12.9% of 2023 target

The third quarter business results of Nam Mekong Group (Code VC3) recorded net revenue of VND 192.9 billion. Of which, revenue from real estate business accounted for VND 191.3 billion, VND 1.6 billion was recorded from service provision.

Cost of goods sold accounted for 132.8 billion VND, gross profit reached 61 billion VND equivalent to a gross profit margin of 31.6%. Financial revenue in the period decreased by 57%, to only 1.4 billion VND.

Notably, financial expenses increased 2.4 times over the same period, to VND843 million. Selling expenses increased to VND14.3 billion as the company began to recover its real estate business in the third quarter. At the same time, business management expenses also increased by 8.5%, accounting for VND8.2 billion.

After deducting all expenses and taxes, VC3's after-tax profit is 31.8 billion VND, the after-tax profit of non-controlling shareholders is only more than 1 million VND.

VC3's accumulated revenue in the first 9 months of the year reached VND383.9 billion, and accumulated profit after tax of the parent company's shareholders reached VND56.6 billion. Compared to the target set at the beginning of the year with revenue of VND1,873 billion and profit after tax of the parent company's shareholders of VND434.8 billion, VC3 has only achieved 20.5% of the revenue target and 12.9% of the annual profit plan.

Negative business cash flow of 358.4 billion VND, inventory of 1,877 billion VND at Bao Ninh 2 project

Regarding VC3's asset structure, it can be seen that the majority of the company's assets are located in the Bao Ninh 2 project. Specifically, at the end of the third quarter, VC3 had total assets of VND 3,546.3 billion, down 4.5% over the same period. Cash and cash equivalents accounted for VND 134.6 billion, not fluctuating too much.

Receivables increased dramatically from VND491.6 billion to VND772 billion. Inventory, although reduced compared to the beginning of the year, still accounts for VND2,378.1 billion. Of which, inventory at Bao Ninh 2 Urban Area project still accounts for 80% of inventory, equivalent to a value of VND1,877.5 billion.

Compared to total assets, inventory at Bao Ninh 2 project accounts for 52.9% of VC3's total assets. Following is inventory at The Charms Binh Duong project with 485.2 billion VND, equivalent to 13.7% of total assets.

In VC3's capital structure, payables also account for VND2,290.4 billion, equivalent to 64.6% of total capital. Notably, short-term debt increased 3.2 times compared to the beginning of the year, accounting for VND384.2 billion. Long-term debt, on the contrary, decreased from VND123.5 billion to only VND3.3 billion.

According to the cash flow statement, Nam Mekong's net cash flow from operating activities is currently negative VND358.4 billion in Q3/2023. Net cash flow from financing activities increased by VND143.9 billion with the amount of money collected from borrowings accounting for VND279.9 billion.

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