Thu Thiem land magnates sell off low-priced stocks
Ho Chi Minh City Technical Infrastructure Investment Joint Stock Company (CII) registered to sell 10 million NBB shares of Nam Bay Bay Investment JSC (HoSE: NBB) by agreement method for financial balance. The estimated time for implementation is from June 6 to July 6 in the form of an agreement for the purpose of financial balance. If successful, the CII transaction will reduce the ownership rate of 39.1 million shares, equivalent to 39%.
Since the beginning of the year until now, CII has repeatedly lowered its share ownership ratio of NBB, with a total of 16.3 million shares, down to 49.1 million shares, equivalent to 49% at present, and transferred NBB from a subsidiary to an associate.
According to NBB’s first quarter business results report, revenue reached 77 billion dong, while the same period last year reached more than 162 billion dong. Profit after tax reached VND 1.5 billion, down 95% compared to the same period last year at VND 32 billion.
Closing the session on June 2, NBB shares reached VND 18,200/share. With this market price, NBB’s stock has decreased by nearly 70% compared to the peak on January 11 when reaching 59,700 VND/share.
Thus, the fact that CII has continuously reduced the ratio of NBB shares in the context that this stock has continuously plummeted since the beginning of this year. Although NBB’s market price has decreased by 70% as of now, CII still decided to sell 10 million NBB shares.
Closing the trading session on June 3, CII shares reached VND 21,500/share, down 62.8% from the peak in early January 2022.
Before the Lunar New Year, CII witnessed a floor reduction of up to a dozen sessions after the shock “Tan Hoang Minh withdrew from the auction of 2.4 billion VND/m2 in Thu Thiem”.
Previously, within about the last 2 months of 2021, CII skyrocketed from less than 20,000 VND/share to a peak of 58,000 VND/share after the news that Tan Hoang Minh Group successfully auctioned a land plot of 10,000m2 in Thu Thiem for a price 2.4 billion VND/m2.
The stock price went up, a series of leaders promptly exited CII stocks right before a series of dramatic declines to the floor for ten consecutive sessions.
For example, Ms. Nguyen Thi Mai Huong, Head of CII’s Internal Audit Committee, has completed selling off all nearly 291 thousand shares CII is holding from November 29 to December 16, 2021. Around the first half of November 2021, Mr. Le Vu Hoang, Chairman of CII’s Board of Directors and Mr. Duong Quang Chau, Director of CII’s infrastructure project management department sold 393 thousand and 180,000 shares of CII, respectively.
The major foreign shareholder, VIAC (No.1) Limited Partnership, “hardly” divested capital at CII when the market price increased. This organization sold 13.5 million CII shares from November to early January and recently registered to sell 5.5 million CII shares from January 10 to August 2022.
CII recorded a revenue of 2,867 billion dong in 2021, down 46% compared to 2020. In terms of profit, the company had a net loss of 242 billion dong, the profit in the parent company after tax was negative 332 billion dong. Therefore, CII cannot afford to pay dividend in 2021. However, in the ambitious plan of 2022, CII’s revenue is expected to increase 4 times and will pay a dividend of 12%.
Also in 2021, CII’s revenue will mainly come from two main segments: traffic toll collection and real estate. However, these two segments were severely affected because all BOT stations had to stop collecting tolls, while the real estate business was completely paralyzed from compensation, construction to business.
CII is known for owning a “huge” land fund of more than 96,000 m2, which was assigned by the People’s Committee of Ho Chi Minh City to implement the New Urban Area project, of which 90,078.3 m2 of land in Thu Thiem New Urban Area has been used stably for a long time. long enough for CII to build houses, the remaining 6,053m2 of land is used for 50 years for the purpose of building offices for lease.
Regarding legal issues, CII has been verified by the State Audit and Government Inspectors on many construction and planning issues in Thu Thiem New Urban Area. The verification results showed that CII implemented the BT project incorrectly in the bidding principles and progress of the BT infrastructure project. In addition, the valuation of Thu Thiem New Urban Area on the market compared to the price when it was assigned to CII is extremely large, possibly up to billions of USD.
Ngoc Cuong
at Blogtuan.info – Source: vietnamnet.vn – Read the original article here
