Market price hits rock bottom, MWG shares hit record matching order since listing

The first trading session of the month saw a strong recovery after two sessions of decline. At the end of the session on November 1, the VN-Index increased by 11.47 points, equivalent to 1.12% to 1,039.6 points. The VN30 basket alone recorded 22 stocks increasing in price.

However, MWG shares of Mobile World Investment Corporation went against the market trend, ending the session in light green at VND 35,100/share - the lowest closing price since November 2020.

This is also the second consecutive floor price drop of Mobile World. In just 5 sessions from October 26 to November 1, MWG has decreased by 19.31%, equivalent to a market price decrease of VND8,400.

Foreign investors also contributed to the pressure in the session on November 1 when they net sold 5.3 million shares, equivalent to VND188 billion. Since the beginning of October, foreign investors have net sold nearly 24 million MWG shares, equivalent to a value of more than VND1,100 billion.

Notably, in today's session, this stock had the second highest matching order on the floor with a volume of over 21.09 million units, equivalent to a value of VND750 billion. This is also a record matching value in a session since MWG listed on the floor in July 2014.

Finance - Banking - Market price hits rock bottom, MWG shares hit record matching order since listing — MWG stock price movement (Source: FireAnt).

In the context of a weakening economy and rising inflation, consumers tightened spending on almost everything, especially non-essential high-value products such as phones and computers; Mobile World recorded unsatisfactory business results despite the growth of its department store chain.

Closing the first 9 months of 2023, Mobile World recorded VND 86,858 billion in net revenue, down 15% over the same period last year. Profit after tax reached VND 77.4 billion, "evaporating" nearly 92% compared to VND 3,482 billion recorded in the same period last year and far from the VND 4,200 billion profit target set for the whole year.

Regarding revenue structure, The Gioi Di Dong and Topzone chains are estimated to reach VND20,672 billion, accounting for 23.8%; Dien May Xanh reached VND41,692 billion, accounting for 48% and Bach Hoa Xanh VND22,323 billion.

In the context of declining business, a series of leaders at Mobile World did not receive salaries in the third quarter of 2023. Specifically, as of September 30, 2023, Chairman of the Board of Directors Nguyen Duc Tai received 226.3 million VND in salary - equal to the income on the audited financial report for the first half of 2023. Thus, in the third quarter, the MWG leader did not receive any salary.

In addition, the salaries of Mr. Doan Van Hieu Em - Member of the Board of Directors and Mr. Tran Huy Thanh Tung - Member of the Board of Directors and General Director remained the same compared to the first half of the year, recorded at VND 580.5 million and VND 160.8 million, respectively.

On the other hand, Mr. Robert Willett - Member of the Board of Directors in the third quarter of 2023 earned nearly 1 billion VND. In the first 9 months of the year, Mr. Robert Willett earned more than 2.1 billion VND in salary. In addition, Member of the Board of Directors Nguyen Minh Luom also received 96.5 million VND in salary in the third quarter.

Not only were leaders' incomes affected, staff costs were also cut by VND1,300 billion in the first 9 months of the year, recorded at VND6,100 billion.

As of September 30, 2023, Mobile World had 68,374 employees, a decrease of more than 5,600 employees compared to the beginning of the year. Thus, it is estimated that the business spent an average of about 85.7 million VND per employee in the first 9 months of 2023 .

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