Chemical group stock hitting floor price an abnormal occurrence: chairman

In the eight years since it listed, the Duc Giang Chemical Group (DGC) stock has never hit its floor for five consecutive sessions; and it’s abnormal that this happened, says chairman Dao Huu Huyen.

"This unusual event happened in the year when DGC's business results were the highest ever with revenue estimated at over VND14,000 billion ($563.6 million) and after-tax profit at over VND6,000 billion ($241.5 million)," DGC's chairman wrote in a November 16 letter to shareholders.

Huyen noted that Duc Giang Chemical was a company with a good financial foundation, a deposit balance of over VND8,000 billion ($32.2 million) and debt of VND600 billion ($24.15 million).

DGC's profit in October and November was estimated at about VND800 billion and the group would certainly meet its after-tax profit target of VND1,100 billion ($44.28 million) in the fourth quarter, he wrote.

In the third quarter of 2022, the company's net revenues went up 75% year-on-year to VND3,696 billion ($149 million), while gross profit increased 2.5 times over the same period last year to VND1,646 billion ($66.26 million).

In the first nine months of the year, DGC reported net revenues and after-tax profits of VND11,333 billion ($456.2 million) and VND4,917 billion ($198 million), up 86% and more than 3 times year-on-year, respectively.

The DGC stock had four consecutive "flooring" sessions from November 10-15 on the Ho Chi Minh Stock Exchange (HoSE).

On the morning of November 16, the stock hit its floor price of VND49,500 ($2), but rebounded in the afternoon session to its ceiling price of VND56,900 ($2.29).

In a similar case, in a letter sent to the State Securities Commission and the HoSE in mid-November, Eximbank said it could not control the continuous fall of its share price because it was "driven by market supply and demand". The HoSE-listed EIB had hit its floor prices for five consecutive sessions from November 9-15.

Nam Kim Steel JSC, a galvanized steel sheet producer, in mid-November also wrote to the market regulators saying that it could not control the plunge of its share price because it was caused by investor sentiment. The stock (HoSE: NKG) had hit its floor price for five consecutive sessions.

Previously, on November 10, major Vietnamese real estate developer Novaland said the price of its shares had hit the floor for five consecutive sessions due to market sentiment and macroeconomic conditions.