Shares linked to ‘Shark Hung’ slide despite market rallies

Shares of Cen Land (HoSE: CRE), a major Vietnamese real estate brokerage linked to businessman Pham Thanh Hung, fell sharply on Monday, bucking a broad market rally that lifted the benchmark VN-Index to a fresh high.

The VN-Index jumped 46.72 points, or 2.7%, to close at 1,751.03, with gains spreading across most sectors. The blue-chip VN30 index rose 52 points, led by large-cap stocks.

In contrast, Cen Land shares dropped 6.52%, close to the daily limit, to VND8,310 ($0.32) per share. Trading volume surged to 1.7 million shares, well above the stock’s average of around 300,000 shares per session.

CRE’s recent price movement has broadly tracked the wider market. During a rally from April, the stock climbed from about VND6,500 to VND11,500 ($0.44) over four months.

As the market moved sideways between September and December, the shares slid back 28% to current levels, returning to prices last seen in June.

Founded in 2001, Cen Land operates primarily in real estate brokerage and is best known for its association with Pham Thanh Hung, widely known as “Shark Hung”.

Hung won the name "Shark Hung" as he joined Shark Tank, a popular reality television show where startup entrepreneurs presented their business ideas to a panel of wealthy investors, known as "Sharks," to seek investment capital in exchange for a stake in their company.

Hung is vice chairman of Cen Land’s board and personally owns 15.6 million CRE shares, equivalent to about 3.36% of the company. He has been involved with the firm since its early days and holds senior roles across several companies within the Cen Group ecosystem.

Improving profits, bond debt cleared

The sharp share price drop comes despite signs of improving business performance. In the first nine months of the year, Cen Land reported a 27% decline in revenue to VND838 billion ($31.82 million), but net profit nearly doubled to VND64 billion ($2.43 million), supported by improved margins, lower administrative expenses, and reduced losses from other activities.

In mid-October, the company said it had fully repaid a VND450 billion ($17.1 million) corporate bond issued in 2020 to VNDirect Securities. At the time of repayment, the outstanding principal stood at VND346 billion, with accrued interest of VND10.47 billion. The bond, originally due in 2023, had been extended twice before its final maturity on October 13.

As of September 30, Cen Land reported total assets of nearly VND7.65 trillion ($290.4 million), with more than VND6 trillion recorded as receivables.

Short-term borrowings stood at VND906 billion ($34.4 million), while long-term loans amounted to VND124 billion ($4.7 million), although the bond repayment is expected to significantly reduce short-term debt.