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Friday, July 12, 2024

Damsan to increase stake in energy subsidiary

The Saigon Times

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HCMC – Damsan Joint Stock Company, whose ADS shares are traded on the Hochiminh Stock Exchange, plans to pump an additional VND86.4 billion into its energy business arm, called AD Green Corporation, in the first quarter of 2023.

The board of Damsan has passed a resolution on the capital contribution, the local media reported.

As of September 30 this year, Damsan had invested VND39.6 billion in AD Green Corporation, or a 33% stake in the latter.

Once the upcoming capital contribution is done, Damsan would raise its ownership in AD Green Corporation, which is based in the northern province of Thai Binh, to 52.5%, equivalent to VND126 billion.

Vu Huy Dong, board chairman at Damsan, will continue to hold the stake of Damsan in AD Green Corporation and has to complete procedures needed for the capital contribution.

Regarding its business performance, in the year to September, Damsan had seen its net revenue up 29% year-on-year at nearly VND1,328 billion, while its pre-tax profit and net profit had fallen 12% and 9% to around VND75 billion and over VND58 billion, respectively.

Damsan looks to obtain more than VND2,200 billion in revenue and VND121 billion in pre-tax profit this year, up 30% and 68% against the same period last year, respectively.

Closing the trading session today, December 19, ADS inched up 1.9% at VND10,700.

The local stock market wrapped up the first trading session of the week in negative territory.

With decliners outnumbering advancers by 257 to 159, the benchmark VN-Index of the HCMC market shed over 14 points, or 1.34% against last Friday at 1,038.4.

Trade on the southern bourse improved more than 12% in volume and 3.4% in value compared to the previous session at around 988 million shares worth over VND16,000 billion, including some VND1,800 billion worth of shares traded in block deals.

Many stocks in the VN30 basket reversed course to end lower, putting pressure on the main index. Only four stocks in the basket made gains, namely retailer VRE, consumer goods producer MSN, and two lenders HDB and TCB, while 25 others declined.

On the Hanoi exchange, increased selling pressure along with the poor performance of stocks in the HNX30 basket resulted in the HNX-Index falling at the close.

The HNX-Index lost 0.75 points, or 0.35%, over the session earlier at 212.24, with 71 stocks rising and 90 others dipping. Only nine stocks in the HNX30 basket bucked the market downtrend.

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