10 years, a code increased by 13 times, almost canceled the transaction for important reasons
Joint Stock Company Cuu Long Pharmaceutical (HoSE: DCL) traded for the first time on September 17, 2008. In nearly 12 years of listing, Cuu Long Pharmaceutical has had many ups and downs. DCL’s market price had record low days.
According to historical data, Cuu Long Pharmaceutical used to have a good growth trend from the time it was listed until mid-2009, then plummeted. The downtrend continued until nearly 3 years later. The lowest recorded market price of this code is around 2,100 VND/share on October 1, 2012.
DCL shares were temporarily suspended from trading from October 31 to December 2011 due to late submission of the 2010 audited financial statements, 2010 annual reports and six-monthly reviewed financial statements. Cuu Long Pharmaceutical received a warning from the Ho Chi Minh City Stock Exchange (HoSE) due to significant reporting debt.
Specifically, at that time, the enterprise had just completed two reports, still owed the review report for 6 months and applied for an extension until the end of December 31, 2011, with the reason that it was “still in the process of collecting data”. According to HoSE, then, if by the end of December 31, 2011 the company has not yet fully disclosed information, the department will consider canceling the compulsory listing of DCL shares.
Technical graphics by DCL. Screenshot: CafeF.
In the wave of people participating in the stock market from mid to late last year, DCL also inherited a huge “sweeping” effect. Cuu Long Pharmaceutical first hit its own peak on July 1, 2021, reaching VND 41,500/share.
After July 1, 2021 up to now, the movement of DCL has tended to go down. The technical chart has not seen any recoil, showing an uptrend. Even from the beginning of March, Cuu Long Pharmaceutical had only 5 gaining sessions, many sessions increased less than 1% each. Particularly on March 4, it increased sharply to more than 4%. The rest is a series of sessions filled with red.
Updated to the end of the session on March 29, DCL further decreased by more than 2% of the market price, to 36,200 VND/share. If based on the highest and lowest prices in DCL history, the difference is up to 13 times.
The recent drop in scores of Cuu Long Pharmaceutical may be related to the former leaders of this unit. Before this issue, DCL has written with the State Securities Commission. Specifically, the arrest of former company leaders are legal issues of the old period, unrelated to current operations.
The incident was related to the company’s contract to produce oseltamivir with the Ministry of Health, but it took place from 2005-2007, when the company was both equitized and unlisted.
At that time, the state shareholder still held the controlling power and the incident happened before the State Capital Investment Corporation (SCIC) took over Cuu Long Pharmaceutical. At the time of the incident, FIT Group Joint Stock Company (FIT) – the current parent company of Cuu Long Pharmaceutical – had not invested in owning any shares in this pharmaceutical company.
Regarding the business situation, in the last 4 years, according to the publicly audited financial statements, the revenue from sales – service provision and gross profit from sales – providing services of Cuu Long Pharmaceutical approximately equal growth. The situation is much better than it was 10 years ago.
Even profit after tax increased sharply. In 2018 it was 12 billion VND, in 2019 it increased more than 7 times to 87 billion VND. In 2020, 2021 will record after-tax profit of VND 68 billion and VND 87 billion, respectively. Earnings per share (EPS) increased from 0.22 in 2018 to 1.5 in 2021. In 2019 EPS alone achieved a fairly high yield of 1.56.
Recently, Cuu Long Pharmaceutical has announced a resolution to increase charter capital to more than 730 billion VND. Charter capital before the change is 588 billion dong.
at Blogtuan.info – Source: Soha.vn – Read the original article here
