'Pangasius Queen' loses nearly 40 billion in stocks

Investing more than VND180 billion mainly in real estate stocks, Vinh Hoan lost 21.5% in 2023, but halved compared to the same period.

The recent consolidated financial report of Vinh Hoan Joint Stock Company (VHC) shows that the company has 181.2 billion VND invested in securities, an increase of about 1.9 billion compared to 2022. But the fair value of these items at the end of the year is only 142.3 billion VND.

Thus, Vinh Hoan is losing nearly VND39 billion in securities, equivalent to 21.5%. The company's investment performance is in the opposite direction to the general market when in 2023, the VN-Index increased by more than 12%.

About 97% of VHC's investment capital is in real estate stocks, respectively NLG of Nam Long, DXS of Dat Xanh Real Estate Services and KBC of Kinh Bac Urban Area. Compared to 2022, Vinh Hoan invested more money to buy NLG and DXS, while selling more than a third of KBC shares.

DXS was the most damaging code to VHC's portfolio with a loss of 42%. Followed by NLG with a loss of 12% and KBC only retreated by 1.6%.

Vinh Hoan started investing in securities in 2020 with a capital of about 9 billion VND. In the first year, this activity did not record any loss or profit. In 2021, the company started pouring money into NLG and DXS to increase the total portfolio value to nearly 80 billion VND and recorded a performance of 14.6%. This was the time when the stock market was in an uptrend with the growth rate of VN-Index reaching nearly 36%.

Vinh Hoan's stock investment activities have declined since 2022. This enterprise invested more capital to increase the total value of the portfolio to more than 179 billion VND but lost about 77 billion with a deficit of 42.7%. At that time, the general market recorded a big "crash" with the VN-Index falling nearly 33%.

In addition to investing in stocks, Vinh Hoan still prefers to deposit idle money in banks. The company currently has more than VND236 billion in non-term deposits and nearly VND1,926 billion in deposits with terms of more than 3 months to less than a year. Thanks to that, this enterprise recorded about VND117 billion in deposit interest in 2023. In addition, the company also invested VND50 billion in the bond channel.

Regarding business results, Vinh Hoan broke the plan when both output and selling price decreased last year. Revenue decreased by 24% to more than 10,000 billion VND, profit after tax decreased by more than half to nearly 950 billion VND, the lowest in the past three years.

Siddhartha

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