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Dragon Capital invests more in Hoa Sen Group

The Saigon Times

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HCMC – Dragon Capital has raised its stake in Hoa Sen Group, which trades its HSG shares on the Hochiminh Stock Exchange, becoming one of the steelmaker’s major shareholders.

On May 25, Dragon Capital’s members sold 1.75 million HPG shares and cut its ownership in the steelmaker from 5.12% to 4.86%, making it no longer a major shareholder of Hoa Sen Group.

However, the fund manager acquired a combined seven million HSG shares on June 12 and 14, increasing its ownership in Hoa Sen Group to 6.38%.

Norges Bank, a member of Dragon Capital, bought the highest amount, at two million shares, while Hanoi International Limited acquired 1.5 million shares.

Other members also bought more HSG shares. Grinling International Limited, Hanoi Investments Holdings Limited and Vietnam Enterprise Investments Limited purchased one million shares each, while Amersham Industries Limited got 500,000 shares.

HSG shares of Hoa Sen Group have been included in the list of stocks ineligible for margin trading due to its net losses in the first half of the fiscal year 2022-2023.

Hoa Sen’s revenue plunged by a staggering 49.7% to VND14.9 trillion, according to its reviewed consolidated semi-annual financial statements for FY2022-2023.

It posted VND424.2 billion in net losses, compared to a profit of VND873 billion in the year-ago period.

Meanwhile, the steelmaker’s gross profit plummeted 69.2% year-on-year.

Hoa Sen has worked out two scenarios for this fiscal year. In its first scenario, the company looks to produce 1.4 million tons of products and obtain VND34 trillion in revenue and VND100 billion in profit, down 32% and 60% year-on-year.

In the second scenario, in which the firm’s output reaches 1.5 million tons, its revenue would drop by 28% year-on-year to VND36 trillion, while profit increased 20% over the same period in 2022 to VND300 billion.

HSG shares extended the losing streak to the fourth straight session at the close today, June 19, at VND16,250 per share, with a matching volume of eight million shares.

On the southern bourse, the number of decliners tripled that of advancers by a ratio of 315 to 113, sending the VN-Index of the HOSE down 9.82 points, or 0.88% from last Friday, to 1,105.4 points.

Trade on the southern market plunged by 30.1% in volume and 36.1% in value, with over 811.3 million shares worth VND14.3 trillion changing hands. Nearly 87.7 million shares were transacted in block deals, contributing more than VND1.8 trillion to the overall value.

There were 10 bluechips rising and 18 others dipping in the VN30 basket. The VN30-Index slid 10.12 points, or 0.91% lower than the session earlier, to 1,098.94 points.

Lender VCB was the main drag as it lost 3.1%, contributing nearly 3.8 negative points to the benchmark VN-Index.

Many real estate stocks finished the day in the red. NVL crashed to the floor, losing 6% to VND14,000 per share and took the lead by liquidity on the southern bourse with a matching volume of 67.2 million shares.

PDR, HQC, LDG, DRH, SCR, and HPX lost between 3.1% and 4.2%, with trading volume ranging from 5.5 million shares to 25.4 million shares.

The HNX-Index of the Hanoi Stock Exchange followed the market downward trend, ending the day down 1.93 points, or 0.84% from the previous session, 226.52 points.

There were 59 winners and 125 losers in the northern market. Trade on the Hanoi bourse amounted to VND1.9 trillion with 127.5 million shares changing hands.

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