Although it could not maintain the purple color, a series of 7 consecutive ceiling sessions (from the date it was listed on UpCOM on April 27) along with the near-limit session on May 10 helped the market price of HSV shares of Hanoi Iron and Steel Joint Stock Company (UpCOM: HSV) increase by 268%.
At the end of the trading session on May 10, 2021, HSV shares of Hanoi Iron and Steel Joint Stock Company (UpCOM: HSV) officially reached 38,600 VND market price after increasing 14.5%.
Notably, despite not being able to maintain the purple color, a series of 7 consecutive ceiling sessions (from the day it was listed on UpCOM on April 27) along with this session that almost ended in amplitude, helped the market price of HSV shares increase by 268%. Stock liquidity ranged from 100 - 2000 units in the first 5 sessions on the floor before suddenly increasing to 152,000 - 421,600 units in the last 3 sessions.
It is known that the enterprise has a charter capital of 50 billion VND with a major shareholder who is a member of the Board of Directors, General Director Nguyen Van Quan owns 13% of the shares. Chairman of the Board of Directors, Mr. Nguyen Mau Hoang only holds 0.8% of charter capital. Mr. Hoang is concurrently holding the position of Head of Corporate Finance Consulting Department, Phu Hung Securities Joint Stock Company.
Hanoi Iron and Steel operates in the field of metal and non-metal scrap trading. This unit specializes in importing scrap iron and steel from businesses and industrial parks and then distributing directly to iron and steel manufacturing enterprises nationwide such as Hoa Phat Hung Yen Steel Company Limited, Nghi Son Iron and Steel Joint Stock Company, Bac Viet Green Trading & Service Company Limited, Tan Hoang Linh Company...
The company currently has two warehouses specializing in collecting and gathering all kinds of metal scrap in the form of rented warehouses, including a warehouse in Phung Xa commune, Thach That district, Hanoi with an area of 700 m2 and a warehouse at the port storing scrap iron and steel goods in Phu My 1 Industrial Park, Phu My Ward, Phu My Town, Ba Ria - Vung Tau province.
Recently, Hanoi Iron and Steel announced its financial report for the first quarter of 2021 with impressive profit results.
Specifically, HSV's net revenue reached more than 67.67 billion VND and profit after tax reached 1.98 billion VND, 3.1 times higher than the profit of the same period.
According to the report in the 2021 Shareholders' Meeting, HSV aims to achieve 330 billion VND in revenue and nearly 3.5 billion VND in profit after tax.
Thus, at the end of the first quarter, HSV only completed 21% of the yearly revenue plan but in terms of profit, it completed 57% of the plan.
The main reason for this sudden profit is the increase in unit selling price while the company has inventory from the previous year, leading to a sharp increase in gross profit.
Regarding costs, in the first quarter of 2021, the business recorded a sharp increase in management costs, doubling compared to the same period in 2020. According to assessments, the cause of this sharp increase in costs is due to the need for investment and expanded production business activities, so the company increased recruitment of personnel as well as senior leaders to run the company towards larger-scale development.
Previously in 2020, the company recorded net revenue of 322.6 billion VND - an increase of 31% compared to 2019; Profit after tax reached 2.5 billion VND - down 19% due to management costs increasing 1.5 times (mainly from labor costs and depreciation of fixed assets).
Total assets at the end of the first quarter of 2021 were at VND 74.4 billion - down 4% compared to the end of last year. Short-term assets account for nearly 93%, mainly short-term receivables of nearly 38.8 billion VND and inventory of 25.4 billion VND; Long-term assets are mainly fixed assets of nearly 5.2 billion VND.
In terms of capital, the company is borrowing a total of 16.7 billion VND from short-term debt. Undistributed profit after tax is nearly 6.4 billion VND.
Source: Securities Economics Newspaper
Newspaper link: https://lanhtechungkhoan.vn/co-phieu-tan-binh-hsv-cua-gang-thep-ha-noi-tang-gan-270-sau-8-phien-93370.html