Hung Vuong Corporation stock price continue to drop half of value

19:14 | 13/05/2019
The difficulties from the 14th period of review (POR14) of the US Department of Commerce (DOC) for August 1, 2016-July 31, 2017 still badly affects Hung Vuong Corporation, as its stock shed half of its value in a single month.
hung vuong corporation stock price continue to drop half of value
The stock of Hung Vuong Corporation has dropped to half its value over-month

Hung Vuong Corporation (HSX: HVG) has just released announcement No.030519/CV-HVG on its website about fully divesting Hung Vuong Song Doc JSC.

This is the result of the May 2 meeting of the HVG board of directors. HVG owns 32.13 million shares at Hung Vuong Song Doc JSC, equivalent to 51 per cent.

By the last day of March 2019, HVG’s subsidiaries included:

No

Company names

Percentage of ownership

1

Angiang Fisheries Import Export JSC (AGIFISH Co)

79.58

2

An Lac Real Estate JSC

76

3

HVBT Seafood Processing Co.,Ltd

90

4

Eroupe JSC (EUR)

80

5

Asia Co.,Ltd

96

6

Tac Van Seafoods Co

66.78

7

Hung Vuong Song Doc JSC

51

Associated companies

8

Hung Vuong – An Giang Football JSC

48

9

Viet Thang Feed JSC (VTF)

31.16

10

Hung Vuong Mien Tay Aquaculture JSC

48

11

Hung Vuong – Sa Dec Co.,Ltd

40

12

Hung Vuong – Vinh Long Aquatic Food Processing JSC

38.75

Joint Venture

13

Hung Vuong Mascato Co.,Ltd

60

HVG decided to liquidate its real estate holdings and dissolve An Lac Real Estate where it held 76 per cent, while also divesting Sao Ta Foods JSC (FMC) (more than 21 million shares), reducing its ownership from 90.36 to 33.16 per cent in Viet Thang Feed JSC (VTF), and sold Cold Storage 2 to ABA Business Solution Inc., collecting nearly VND151 billion ($6.56 million).

Accordingly, HVG liquidated more than 39 per cent of its assets, reducing its holdings from VND13.9 trillion ($604.35 million) to only VND8.434 trillion ($366.7 million).

However, HVG finance is still unbalanced and auditors emphasise that the company’s ability depend largely on its ability to arrange cashflows and turn a profit in the future, as well as the restructuring of its bank debts.

POR14 result causes difficulties to Hung Vuong Corporation Prominent entrepreneurs planning to retire Hung Vuong Corporation reports loss of $12 million in second quarter

By the end of March 2019, the total debts of HVG stood at VND5.84 trillion ($253.9 million). The table below shows HVG’s short-term bank loans:

Banks

Loan value (unit: million dollars)

BIDV

84.13

Vietcombank

26.17

HDBank

7.39

PG Bank

4.32

Agribank

3.02

Vietinbank

1.7

Total

126.75

HVG’s due debts payable:

Banks

Loan value(unit: million dollars)

BIDV

1.42

PG Bank

0.17

HDBank

0.77

Total

2.37

On the stock market, after a period of breakthrough at the beginning of the year (going from VND5,000 to VND8,000 [$1.22-0.35]) HVG dropped without slowing in the past month to VND3,950 ($0.17) after the anti-dumping tax under POR14 was announced.

hung vuong corporation stock price continue to drop half of value
HVG stock on May 9

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