Vingroup shares fell to the lowest level in nearly 5 years, the market capitalization was close to the threshold of 200,000 billion dong c

At the closing price of September 29, Vingroup’s capitalization dropped to more than 208 trillion dong, ranking third in the entire stock market.

Today, September 29, the market rallied right from the opening. However, the cash flow was indifferent, making the momentum for the increasing momentum to become weak, plus strong selling pressure at the end of the afternoon so the index closed at the lowest point of the day. VN-Index lost more than 17 points, retreating to 1,126, marking the 5th consecutive session closing below reference.

One of the reasons why the market dropped deeply came from the fact that many large-cap codes were sold strongly, creating a strong resistance on the index. In which, VIC stock of Vingroup Corporation reduced nearly 2.8 points of VN-Index today when it recorded a deep decrease of 5% to 54,600 dong/share. This is also the lowest price in nearly 5 years of VIC stock, since December 2017. Compared to the beginning of 2022, VIC shares lost 46% of their value after 9 months of trading.

VIC stock hit the bottom of nearly 5 years

The decline of VIC stock started after the company reported a loss of more than 9,000 billion dong in the fourth quarter of 2021. But in fact, the cause of Vingroup’s loss comes from the impact of the Covid-19 pandemic and the Group’s sponsorship activities with a grant of up to VND 6,100 billion. At the same time, the Group also decided to stop producing gasoline cars from the end of 2022 to focus resources on electric vehicles, leading to the recognition of an expense related to rapid depreciation of assets that are not expected to be used and fees paid to suppliers due to contract termination.

According to Vingroup, if excluding expenses incurred outside of the plan at the beginning of the year as mentioned above, Vingroup still has a profit after tax of VND 4,373 billion in 2021 (instead of a loss of more than VND 7,500 billion as reported).

In the first half of 2022, Vingroup recorded 1,027 billion dong in after-tax profit, down 30% over the same period, mainly due to a sharp drop in revenue from the real estate segment in the second quarter.

Mirae Asset estimates that the real estate segment’s profit drop mainly falls in the second half of the year, so it is forecasted that this segment will still bring in more than VND 91,000 billion in 2022 for Vingroup thanks to the handover of the low-rise subdivision. at the project Vinhomes Ocean Park 2.

At the same time, the commercial leasing segment is also expected to continue to grow in the second half of 2022 after showing a clear recovery in visitor arrivals in the second quarter. In 2023, VRE is expected to open 2 more Vincoms Mega Mall; In addition, Vincom Plaza will also be opened in some localities such as Ha Giang, Dien Bien Phu, and Quang Tri, bringing the total area to nearly 2 million m2 (an increase of about 14% compared to the current scale).

In the electric vehicle segment, within the first 9 months of 2022, VinFast has announced a series of big plans in the US market. Notably, on May 21, 2022, Vingroup approved the use of assets as collateral and granted payment guarantees for corporate bonds issued by VinFast in 2022 with a maximum par value of VND 2,000 billion. copper.

VinFast Global’s CFO David Mansfield in an exchange on September 21 said that the Vietnamese automaker plans to start delivering electric vehicles to customers in Europe and the US before the end of this year, aiming to profitable within the next three years. VinFast aims to sell about 1 million electric cars globally within the next 5 to 6 years. In addition to the 150,000 vehicles/year produced at the factory in North Carolina, VinFast is looking for a location in Europe for a third factory.

Market capitalization close to the threshold of 200,000 billion, President Pham Nhat Vuong dropped 237 places on the ranking of world billionaires

At the closing price of September 29, Vingroup’s capitalization dropped to more than 208 trillion dong, ranking third in the entire stock market. Previously, Vingroup was the largest enterprise by market capitalization. However, the adjustments in recent times have caused Vingroup to drop in rank, even below Vinhomes (VHM).

Not only that, with holding nearly 2.16 billion VIC shares (of which 1.17 billion shares are indirectly owned through holding 92.88% shares in Vietnam Investment Group), the financial The assets of Vingroup’s Chairman Pham Nhat Vuong were also significantly affected by the decline in stock prices.

According to Forbes, Mr. Pham Nhat Vuong’s assets are currently valued at 4.1 billion USD, ranking 648th in the list of the richest people in the world, down 237 places from 411 position announced in mid-2022. This is even lower than his $ 4.2 billion in assets in 2018. In 2021, this Chairman’s fortune was up to $ 7.3 billion.

In general, for many investors, this level of property damage can be considered relatively significant. But in fact, most of the heads of businesses rarely list their assets or trade stocks when the market is volatile. The main purpose of business owners is still to build and ensure the business plans of the company, so the increase or decrease in the price of the shares owned by them is almost not too big of an impact. .

Phuong Linh/Market Lifestyle