HCMC – Phuc Hung Holdings Construction JSC, which trades its PHC shares on the Hochiminh Stock Exchange, has clinched multiple new projects.
These projects include building low-rise structures, hotels, and infrastructure.
The firm will be responsible for multiple components of the Cat Tien urban area in the Nhon Hoi Economic Zone, with a contract value of VND900 billion and construction anticipated to last 28 months.
In addition to these projects, it has secured construction contracts in Hanoi with a combined value of VND400 billion.
Despite promising revenue during the second quarter, which surged 32% over the same period last year to VND376 billion, the company’s net profit plunged to VND820 million compared to VND9.78 billion recorded in the year-ago period.
It attributed the sharp decline to strict credit policies imposed by banks, which had led to constrained cash flows within the construction sector, as well as project acceptance and finalization delays.
This, in turn, resulted in sluggish client payments, culminating in a 64% year-on-year surge in interest.
Additionally, Phuc Hung Holdings’ efforts to enhance resource allocation and technological processes have inflated business management costs by 25% versus the second quarter of 2022.
Its subsidiary, Phu Lam Company, faced operational challenges in the first half of the year due to adverse weather conditions and shifting regulatory policies in the hydroelectric sector, contributing to the decline in consolidated net profit.
The firm posted VND737 billion in revenue in the first half of the year, down 4% year-on-year. Its profit after tax in this period slumped by a staggering 80% to around VND3 billion against the same period in 2022.
Its PHC shares advanced 3.27% to VND11,050 per share today, August 14, with a matching volume of nearly 1.1 million shares.
The Hochiminh Stock Exchange saw the number of winners doubling that of losers by 315 to 159, resulting in the VN-Index rising by 4.63 points, or 0.38%, to reach 1,236.84 points.
The trading volume on the bourse surpassed 1.1 billion shares, with a total value of over VND23.5 trillion, up 9.29% in volume and 10.65% in value compared to the previous session. Block deals contributed more than VND1.5 trillion to the overall value, with 73.33 million shares changing hands.
Securities stocks maintained their upward trajectory, with VND almost hitting its daily upper limit with a 6.7% gain, closing at VND21,400 per share. It also took the lead by liquidity on the southern market, with nearly 58.8 million shares changing hands.
VIX rose 4.9% to a 12-month high of VND17,000 per share, with a trading volume of 40.85 million shares.
SSI led the VN30 basket with a 3.6% gain and a trading volume exceeding 30 million shares. HCM recorded a 3.9% rise, trading 8.77 million shares, and VCI improved 3.8%.
The significant contributor to the main index was BID, which gained nearly 2%, contributing 1.15 positive points. However, VCB’s 1.55% decrease exerted a counterbalancing effect, translating into over 1.9 negative points for the benchmark index.
With 123 stocks advancing and 73 others declining, the HNX-Index of the Hanoi Stock Exchange added 5.19 points, or 2.12%, to close at 250.19 points.
Trading volume on the northern bourse totaled 132.87 million shares, with a value of nearly VND2.34 trillion.