PC1 shares just increased in price, major shareholder immediately sold all 15.55 million shares

The self-employed block net bought, pushing PC1 price up, major shareholder Phan Ngoc Hieu "dumped" 15.5 million shares

Recently, Mr. Phan Ngoc Hieu, a member of the Board of Directors of PC1 Group Corporation (code: PC1) has just registered to sell all 15.55 million shares he holds. The reason given is to restructure the investment portfolio.

The transaction is expected to be carried out from August 30, 2024 to September 27, 2024 by negotiation or order matching. Mr. Hieu's current holdings are equivalent to 5% of shares in PC1 Group. If the above transaction is completed, Mr. Hieu will no longer be a shareholder of the group.

The stock price just increased because after a net purchase of 32 billion VND by self-trading, a major shareholder of PC1 immediately "dumped" 15.55 million shares (Photo TL)

Mr. Hieu's transaction took place right after the self-trading group increased its net purchase of PC1 shares. In the session of August 22, 2024 alone, the self-trading group net purchased up to VND 32.28 billion of PC1 shares.

In addition, PC1 stock price in August also recorded a significant increase, from the bottom of 26,550 VND/share, at times reaching 29,600 VND/share, equivalent to an increase of 11.4% in a short period of time.

Loss of growth momentum, 3 consecutive quarters of profit decline

The increase in PC1 stock price occurred in the context of the company's growth momentum showing signs of slowing down. Specifically, in the second quarter of 2024, PC1 recorded net revenue of VND 3,090.8 billion, double compared to the same period.

Cost of goods sold increased in line with revenue, accounting for VND2,622 billion. Gross profit reached VND468.8 billion, equivalent to a gross profit margin decrease from 19.2% to only 15.2%.

Financial revenue increased by 69%, reaching 50.2 billion VND. However, financial expenses also increased from 229.7 billion to 267.2 billion VND. Of which, interest expenses accounted for 201.2 billion VND, showing that interest expenses are putting great pressure on PC1.

Business operations at joint ventures and associated companies recorded much deeper losses than the same period last year. The loss increased 5.8 times over the same period last year, accounting for VND9.2 billion. Sales expenses and administrative expenses increased, accounting for VND24.7 billion and VND120.5 billion, respectively.

After deducting all expenses and taxes, the remaining after-tax profit recorded in the second quarter was VND 74.6 billion, an improvement compared to the loss of VND 20.7 billion in the same period.

Although profits have improved compared to the same period last year, this is the third consecutive quarter that PC1 has seen a decline in profits, despite revenue growth. This shows that the company's growth momentum is facing obstacles in the middle of the year.

PC1's total cumulative revenue in the first 6 months of the year reached VND5,255.6 billion, nearly double the same period last year. Profit after tax reached VND203.7 billion, 3.4 times higher than last year. With this result, PC1 has completed 38.7% of the yearly plan and is behind schedule.

Debt is twice as high as equity, PC1 still holds a large amount of cash

Regarding PC1's asset structure, the company recorded total assets of VND 21,451.6 billion at the end of the second quarter of 2024, an increase of more than VND 1,000 billion compared to the beginning of the year.

The company is still maintaining a large amount of cash and cash equivalents, accounting for 2,180.7 billion VND. Short-term financial investments in the form of deposits also increased to 1,149.6 billion VND.

Short-term receivables from customers increased sharply during the period to VND3,357.4 billion. The increase came from short-term receivables from customers, short-term loan receivables and prepayments to sellers. Inventories also increased from VND943.7 billion to VND1,540.2 billion in line with the increase in revenue.

Regarding capital structure, the company has a large amount of debt, accounting for 14,037.5 billion VND, equivalent to 65.4% of total capital. While current equity only accounts for 7,414.1 billion VND, equivalent to half of current debt.

Most of PC1's debt is long-term debt with 7,461.8 billion VND in bank loans and 1,183.9 billion VND in bond debt. In addition, the company is also recording short-term debt of up to 3,521.4 billion VND, an increase of nearly 700 billion VND compared to the beginning of the year.

Maintaining a large amount of debt puts pressure on PC1's cash flow. In the first 6 months of the year alone, PC1 had to pay up to 389.8 billion VND in interest, much higher than other expenses that this unit had to record during the business period.

Source: https://www.congluan.vn/co-phieu-pc1-vua-tang-gia-co-dong-lon-lien-ban-sach-1555-trieu-co-phieu-post309699.html