Stock price does not equate to good business: BCG executive

Bamboo Capital Group (BCG), a private multi-sector corporation, saw its stock value drop despite the company's good performance, says an executive.

The decline was due to market volatility caused by stricter regulations on local bond and stock markets to prevent manipulative activities, as well as the U.S. Federal Reserve's interest rate hike.

"However, the plunge did not reflect our performance. BCG expects to achieve revenue and profit as planned in the second quarter of 2022," said Pham Minh Tuan, the group's vice chairman.

As BCG's loans have a fixed interest rate, the tightening of bond and real estate credit has no impact on its operations.

Moreover, the firm's capital for key real estate projects has been pre-arranged to ensure development activities, with cash flow for debt repayment mainly coming from its business revenue. BCG’s strategic partners include Nam A Bank, TPBank, Vietcombank, BIDV, and HDBank.

The group is also cooperating with top brokerage agents that specialize in selling to foreign customers, especially those from the Asia-Pacific region, Tuan noted.

All products were sold out during sale events, like phase 1 of King Crown Infinity in 2021, as well as both phases of Malibu Hoi An and Hoian D'or in 2019-2021.

"BCG Land will launch the second phase of the King Crown Infinity project on June 25. The market is extremely enthusiastic, and items are mostly reserved," he added.

The company currently operates 550 megawatts of solar power, with an almost unchanged capacity from the beginning of 2022, dropping only around 1-2%, ensuring a consistent cash flow.

BCG also considers financial investment activities flexibly and thoroughly to provide quick cash flow for the organization when needed.

The corporation plans to raise capital to engage in project development of renewable energy, real estate, infrastructure construction, and other potential core business segments like financial services.

Despite the positive results, BCG’s stock failed to avoid the market downturn loop.

VN-Index plummeted 24% in six weeks to its lowest point in mid-May, placing Vietnam among the world's top three sinking stock markets in 2022, trailing only Hungary and Russia, according to SGI Capital.

Hundreds of stocks fell by 70-75% in June 2022 against the end of March, with many of them seeing values lower than in 2018.

This was in contrast to markets in Indonesia, the Philippines, and Thailand, which have maintained a bullish trend and only fell 3-5% from their highs, SGI Capital noted in a report.

"Domestic investors read news every day and tend to care too much about the U.S. market," said Le Chi Phuc, CEO of SGI, emphasizing that the economic contexts in the U.S. and Vietnam are different.

The law of supply and demand, as well as investor sentiment have influenced the market’s movements, said Nguyen Quang Thuan, CEO of financial data provider Finn Group.

Phuc added that the stock market is always ahead of economic developments and may be reflecting concerns about inflation and the prospect of extreme monetary tightening. "However, cash flow will resume when the indications of inflation risk lessen."