Thuduc House explains why its stock price hit the ceiling for five consecutive sessions

Thuduc House leaders said that shares have increased to the ceiling for five consecutive sessions due to supply and demand and a series of positive news about the operating situation.

Thu Duc House Development Joint Stock Company (Thuduc House - TDH) stock code TDH closed yesterday at 4,510 VND per share. This is the fifth session that this stock has reached its ceiling price with a total increase of nearly 50%. Compared to the beginning of the year, TDH has increased by more than 60%, from 2,840 VND per unit.

Explaining this development, Thuduc House's leaders said that the stock price increased due to market supply and demand, and investors' decisions to buy and sell were beyond the company's control. "Thuduc House does not have any impact on the trading price of TDH shares on the stock market," the company's announcement stated.

In addition, the company's leaders also mentioned the decision of the Ho Chi Minh City Stock Exchange (HoSE) to remove TDH from the trading restriction list due to its correction of information disclosure violations. However, according to HoSE's decision, this stock is still under warning.

In addition, a series of positive news about Thuduc House's recent operations is also one of the reasons for this stock's increase.

The criminal case related to the electronic components business in the period 2017-2019 is coming to an end when the People's Court of Ho Chi Minh City will conduct the trial from June 6 to July 10. TDH leaders stated that the responsibility for compensation for the value added tax loss of more than VND 365 billion and late payment fees belongs to the violators. Recently, this enterprise has been repeatedly forced by the Ho Chi Minh City Tax Department, related to the above incident.

Regarding financial health, Thuduc House believes that it is "different from many businesses in the same industry" when the net cash flow from consolidated business operations is positive and is not under pressure from debt. In fact, according to the first quarter financial report, the company has more than VND950 billion in debt payable, mainly payable according to decisions of the Tax Department. The company does not record loans and financial leasing debts.

Regarding business activities, Thuduc House said that it has a stable source of income from real estate leasing. The company is also consolidating relevant evidence and documents and coordinating with the authorities to soon regain the right to exploit and operate at Thu Duc Agricultural Wholesale Market. The Phu My projects, Hiep Binh Chanh residential area, and Hiep Binh Phuoc residential area are completing legal procedures to transfer to partners. In addition, the company also deploys the service of building townhouses and adjacent houses, although it has not yet brought in a large source of revenue.

In the first quarter of the year, Thuduc House recorded nearly 48 billion VND in revenue, an increase of 42% compared to the first quarter of 2022. Gross profit improved from a loss of more than 2 billion VND to a profit of more than 6 billion VND. However, due to a shortfall in financial revenue, stock price reduction provisions and increased business management costs, TDH had its second consecutive quarter of losses. After-tax profit was negative nearly 11 billion VND, while in the same period it made a profit of more than 59 billion VND. Accumulated loss by the end of the first quarter was nearly 700 billion VND.

Siddhartha

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