In the context of Ts share price of Ts of Ts – Song Da increased after a long time without liquidity, many individual investors constantly spend money to increase ownership and become major shareholders of the company.
Stocks hit the ceiling price for 11 consecutive sessions
On the stock market, THS shares of Thanh Hoa – Song Da Joint Stock Company have just gone through a series of 11 consecutive ceilings and no signs of decline. From the middle of April up to now, this code has increased by all 14/16 sessions. Closing the session on May 7, the stock market price stopped at 22,100 dong / share, up 256% after 3 weeks.
As noted by the writer, in many ceiling-hitting sessions, the matched volume only reached a minimum of 100 shares, the average liquidity was only over 10,700 units. Another noteworthy point was that in many sessions, there was put-through transaction with the average price much lower than the matching order price.
The fact that THS shares suddenly surged after a period of going sideways without liquidity made investors question what factors drove the stock price to rise dramatically after a long period of sleep.
Price movement of THS shares from the bourse up to now. (Source: VNDirect).
Major shareholders continuously gather more shares on the top
According to research, Thanh Hoa – Song Da Joint Stock Company was formerly Thanh Hoa Technology Company, then changed to operate as a joint stock company with a charter capital of 5 billion VND, named as Company Thanh Hoa trade and service joint stock.
Due to the need to expand production and business, in May 2004, Thanh Hoa Trading and Service Joint Stock Company invited Song Da Corporation to contribute capital to establish Thanh Hoa – Song Da Joint Stock Company with charter capital of 10.1 billion VND, of which Song Da Corporation holds 51% of the capital.
By 2014, with the divestment of all capital of Song Da Corporation, Thanh Hoa – Song Da Joint Stock Company changed to a new management mechanism with 100% contributed capital of natural persons. The charter capital up to now is 30 billion VND.
Up to now, internal shareholders and related people own nearly 48% of capital in Thanh Hoa Song Da. (Source: Thu Thao summarizes).
In terms of shareholder structure, Mr. Truong Van Thanh, Chairman of Thanh Hoa-Song Da Board of Directors is the largest shareholder, owns 286,300 THS shares, equivalent to 10.6% of the company’s capital. Plus the shares of related people, Mr. Thanh’s family owns about 16.7% of capital in Thanh Hoa – Song Da.
Mr. Thanh was a former lecturer at Hanoi University of Commerce, the rector of Thanh Hoa Trade and Tourism Vocational School. In addition to his passion for business and training, Mr. Thanh is also known as a member of the Vietnam Writers’ Association, a poet of many famous works such as Winter comes back (2016), Flower weep (2018).
In addition, the company’s senior leaders including Mr. Nguyen Thanh Hai (General Director), Mr. Le Van Tuong (General Director) and Ms. Chu Thi Hoa (Deputy General Director) are also major shareholders of Thanh Hoa. – Song Da with ownership rates of 8.33%, 7.78% and 7.41%, respectively.
Regarding the transactions of external shareholders, two individual shareholders, Mr. Le Anh Tuan and Ms. Nguyen Thi Thanh Thuy, have continuously bought THS shares recently to increase their ownership in the company in the context of stock prices rose hot. The date of becoming a major shareholder of Mr. Tuan and Ms. Thuy is April 13 and April 22, respectively.
Recently, Mr. Thanh’s daughter, Truong Thi Thanh Huyen, has just registered to buy 500,000 THS shares to increase her ownership rate in the company from 4.81% to 8.01%. If the transaction becomes a grandfather, Ms. Huyen will become a major shareholder of Thanh Hoa – Song Da. The transaction is expected to be carried out from April 26 to May 21 through negotiation and order matching.
Business results are not the stock price support factor
In terms of business, the main activities of Thanh Hoa – Song Da are to trade consumer goods and lease business premises.
With commercial activities, the company has 4 factories that wholesale and supply goods such as Hai Duong porcelain, Hai Phong aluminum, Dai Dong Tien plastic, Hoa Phat furniture, Xuan Hoa, Song Hong bedding. Rang Dong thermos bulbs, electronics, refrigeration … For leasing activities, Thanh Hoa – Song Da has two locations for rent: Tran Phu supermarket and 25 Le Loi Trade Center.
Business results of Thanh Hoa – Song Da in the past 10 years. (Source: Thu Thao compiled from the company’s financial statements).
Over the past decade or so, the company’s business has been unstable, with revenues and profits fluctuating from year to year. Turnover is at 160-280 billion / year, after-tax profit is only a few tens of billion dong. 2018 marked the highest profit of Thanh Hoa – Song Da since its inception, with more than 7 billion VND.
In 2020, Thanh Hoa – Song Da recorded VND 263 billion in net revenue, down 8% compared to 2019. In which, revenue from selling goods was VND 254 billion, the rest was revenue from leasing premises. EAT slightly increased by 2% to nearly 3.2 billion dong.
THS’s business results in the first 3 months of this year are also not sudden to support stock prices. In the first quarter of the year, the company achieved nearly 69.4 billion dong of net revenue, a slight increase of 1% year on year. Increasing expenses in the period resulted in a 45% reduction in profit after tax to nearly 389 million VND.
Net cash flow from operating activities was negative to VND 16.7 billion, while at the beginning of the period, it was only negative at nearly VND 7.4 billion.
Business is not that outstanding, but Thanh Hoa – Song Da has a history of regular dividend payments. Dividend rate in the last 3 years remained at 10% – 20% / par value. In 2021, the business plans to pay dividend at the rate of 8%.
Dividend pay history. (Source: Vietstock).
As at 31/1/2021, the company had 114 billion VND of total assets, an increase of 48.5% compared to the beginning of the year. The main reason is that inventories increased from 34 billion VND to 61 billion VND, short-term receivables increased 90% to 20.6 billion VND.
The capital mobilization structure was inclined to liabilities with nearly 80 billion VND as of the end of the first quarter, of which all were short-term debts. Only short-term debt is 26 billion. The company has more than 8 billion dong of investment and development fund, nearly 389 million dong of undistributed profit, down sharply from 3.2 billion dong at the beginning of the period.
Source: vietnambiz.vn – Translated by fintel.vn