XDC shares of Tan Cang Saigon Construction hit the ceiling continuously, the stock price increased 36 times in just 2 months.
In February 2023, VNZ shares of VNG Corporation surprised stock investors when they increased shockingly from VND 240,000 to VND 1,358,700/share when they just moved to UPCoM. Up to now, another stock code has appeared with an unusual increase, which is XDC of Tan Cang Construction Company Limited.
Specifically, since May 2023, Tan Cang Construction's XDC stock has continuously recorded ceiling prices. In a total of 35 trading sessions, there were 26 sessions in which XDC "hit the ceiling". This caused the stock price to skyrocket to VND 667,100/share at the end of the trading session on June 26, 2023.
Tan Cang Construction Company Limited (XDC) has been in decline for 4 years, but its stock price still increased 36 times in just 2 months (Photo TL)
Thus, in just nearly 2 months of trading, the XDC stock code has increased its price by a shocking 36 times. It is worth noting that although it is continuously bought at high prices, the trading volume of this stock is extremely small, only from a few hundred to more than 1,000 shares per session.
How is Tan Cang Construction doing that its stock price keeps skyrocketing?
Tan Cang Construction Company Limited was formerly a Naval Engineering Unit. The unit is 100% owned by Saigon Newport Corporation.
Tan Cang Construction's main business areas are construction, repair of water works, dredging of rivers, seaports and leasing of shore cranes. XDC started to be listed on the stock exchange in October 2022 with 3.28 million shares, equivalent to 36% of charter capital. At the time of the initial offering, only 3 investors registered to buy 8,200 shares at an average price of VND 15,502/share.
Regarding XDC's business situation, the unit recorded 4 consecutive years of decline in both revenue and profit. Specifically, from 2019 to now, the company's revenue has continuously decreased from 523 billion VND in 2019 to only 279 billion VND in 2022.
High cost of goods sold makes the company's gross profit not too high. Profit after tax also follows the trend of revenue, decreasing rapidly from 14 billion VND to only nearly 8 billion VND in 2022.
The company's total assets also changed significantly over the past 4 years, with short-term assets falling sharply from VND564 billion to just over VND204 billion in 2022. Owner's equity remained at VND90 billion over the past 4 years.
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