Hot stocks suspended from trading
The Ho Chi Minh City Stock Exchange (HOSE) has just issued a series of decisions to suspend trading of once-popular stocks that have also seen strong price increases recently due to violations of information disclosure regulations.
The codes put on the "black" list by HOSE this time include: Hai Phat Real Estate (HPX) of Chairman Do Quy Hai, Apax Holdings of Mr. Nguyen Ngoc Thuy (Shark Thuy) and Louis Capital (TGG) formerly of Do Thanh Nhan.
Currently, these enterprises are all restricted and continue to violate regulations on information disclosure, and have not submitted audited semi-annual financial reports for 2023.
This is not surprising to those who closely follow the activities of the above businesses, but quite surprising to investors who buy and sell stocks based on the ups and downs of hot codes on the stock market.
Recently, many stocks in the real estate and financial sectors (including securities companies) have increased quite strongly again in the context that the Government has been making efforts to introduce many policies affecting capital channels, legality and supply-demand balance to support the market.
Many bottlenecks are being drastically removed and the reduction in interest rates is expected to help defrost the real estate market. The excitement of the stock market, meanwhile, has helped financial stocks increase sharply.
In just the past month and a half, Hai Phat Invest (HPX) shares have skyrocketed, nearly doubling, from about VND4,000/share to VND7,310/share in the session on September 8.
Apax Holdings IBC shares also increased from VND1,750/share in mid-July to VND2,520/share on September 8. On September 5, IBC even recorded a ceiling price increase of 7%.
TGG shares of The Golden Group JSC (formerly Louis Capital) stood at the reference price of VND 3,380/share.
Hai Phat Invest is known as a real estate giant in the North, emerging over the past years. However, like many other real estate businesses, HPX fell into a state of illiquidity when the real estate market was sluggish for a long time and the bond market was in crisis after the events of Tan Hoang Minh and Van Thinh Phat.
Like the family of Novaland Chairman Bui Thanh Nhon, HPX Chairman Do Quy Hai has sold tens of millions of HPX shares for a long time, reducing the ratio from over 40% (about more than 120 million shares) to over 14% as at present. HPX shares have decreased from over 26,000 VND/share at the end of October 2022 to about 4,000 VND/share at times.
The shareholder structure at Hai Phat has also changed significantly. On November 30, 2022 alone, more than 54% of HPX's outstanding shares were transferred and changed owners.
Shark Thuy’s Apax Holdings also collapsed when it moved from the education sector to real estate. Over the past year, Shark Thuy’s company restructured the business, using both real estate and household products to pay debts to investors. However, IBC’s stock price is still below “iced tea” level, down more than 10 times in just over a year.
The Golden Group (TGG) has also changed its name and appointed a new chairman. However, its stock price is still very low, not even worth a bunch of country vegetables.
A heavy shock, businesses in trouble
Previously, investors witnessed many stocks being suspended from trading, and these were all businesses falling into difficult situations, often associated with changes in business leaders.
In early March 2023, KLF shares of CFS Investment, Trade and Import-Export JSC were transferred to the trading suspension list by the Hanoi Stock Exchange (HNX). The reason was that KLF was 6 months late in submitting its audited financial statements for the 2022 semi-annual period compared to the prescribed deadline.
In fact, KLF, like many "FLC family" stocks, fell into crisis after the company's leaders were arrested.
Since Mr. Trinh Van Quyet, former Chairman of FLC, and his accomplices were caught up in the law for their involvement in stock price manipulation, stocks in the “FLC family” ecosystem, including FLC, GAB, ROS, BOS, AMD, HAI, KLF, etc., have been in trouble. Most of the “FLC family” stocks have been delisted (AMD, GAB, FLC, ROS, HAI) and suspended or restricted from trading.
For Hai Phat Invest, the liquidity shock when the real estate market froze and the corporate bond market was in crisis has caused the business to fall into a prolonged difficult situation. After many delays in submitting the 2022 Audited Financial Report, on September 5, Hai Phat announced the 2022 audited financial report with many notable changes. HPX has changed from a profit of more than 140 billion VND to a loss of more than 60 billion VND after the 2022 audit.
For "Louis" businesses, the situation is also quite dire after the incident of Mr. Do Thanh Nhan and the Louis Holdings group. VKC Holdings (VKC) announced in early October 2022 that it was unable to pay the 200 billion VND bond lot. All members of the board of directors, supervisory board, and general director of the company resigned before the annual general meeting of shareholders on July 20, 2022.
After Do Thanh Nhan was arrested, most of the "Louis family" businesses recorded poor business results and plummeting stocks, in contrast to the surge of this group in the second half of 2021. Mergers and acquisitions have turned many businesses in the Louis ecosystem into very good financial reports.
In the stock market, over the past years, there have been many cases of businesses that used to be big in the real estate and finance sectors facing difficulties due to not being able to balance cash flow and debt.
If 10 years ago, Hoang Anh Gia Lai (HAG) of Mr. Doan Nguyen Duc (Bau Duc) or Quoc Cuong Gia Lai (QCG), Sacomreal (SCR) encountered difficulties and have not yet fully recovered, recently, Novaland (NVL) of Mr. Bui Thanh Nhon; Hai Phat Invest (HPX) of Mr. Do Quy Hai... have also fallen into a situation of heavy debt burden.
Recently, Novaland has shown signs of recovery but its debt burden is still very large. According to HNX, in the first half of 2023, Novaland had 9 bond codes reaching the principal payment date with a total value of nearly 5,200 billion VND.
Not only in the real estate sector, many businesses in the construction, finance, energy sectors... are also facing cash flow crisis. Hoa Binh Construction (HBC), chaired by Mr. Le Viet Hai, recently reported a profit decrease of more than 800 billion VND after audit, from profit to large loss.
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