Foreign organizations “temporarily lose” nearly hundred billion dong after 2 days as a major shareholder of VPD

After TEPCO Renewable Power Singapore acquired 25% of the shares to become a major shareholder, VPD turned around quickly at the top and dropped sharply for 2 consecutive sessions. The market value of VPD is now 11% lower than the price paid by foreign shareholders for this deal.

Tuan Loc Construction Investment Joint Stock Company has just announced that it has completed the sale of all 18.3 million VPD shares of Vietnam Electricity Development Joint Stock Company (VNPD) by agreement method on December 20. Thus, this organization is one of the parties that “transferred” VPD shares to foreign investors on the day TEPCO Renewable Power Singapore Pte.Ltd became a major shareholder.

It is estimated that at an average put-through price of VND29,500/share, Tuan Loc can earn nearly VND540 billion from this peak divestment deal. Meanwhile, foreign organizations are not so “lucky” when they just become a major shareholder, VPD stock has “turned around” quickly at the top with 2 consecutive plummeting sessions, including one down. floor drama.

VPD’s market price is currently only 26,250 VND/share, 11% lower than the price TEPCO Renewable Power Singapore spent on the acquisition of 25% of VNPD shares. With the original cost of the investment at VND 785 billion, this organization is estimated to have temporarily lost about VND 86 billion after only 2 days of becoming a major shareholder.

TEPCO Renewable Power Singapore is a registered business entity in Singapore of TEPCO Renewable Power – a specialized member in the field of renewable energy generation of Tokyo Electric Power Company Holdings, Incorporated (TEPCO Group). This is one of the largest corporations in Japan in the energy field.

Established in May 1951, after more than 71 years of operation, TEPCO Group has grown to a “huge” scale with 97 affiliated companies (as of April 2021). The charter capital of this group is more than 1,400 billion yen (~ 250,000 billion VND). Total assets of the “giant” of the Japanese power industry at the end of 2020 reached 12,093 billion yen (~ 2.2 million billion VND).

Meanwhile, VNPD is a rather small enterprise in the power industry established in 2022 with an initial charter capital of only VND 13.7 billion. After many times of capital increase, the charter capital of this enterprise is currently at VND 1,066 billion. In addition to TEPCO Renewable Power Singapore, VNPD also has 2 other major shareholders, Power Generation Corporation 1 (EVNGENCO1) and Pha Lai Thermal Power Joint Stock Company (code PPC) with ownership rates of 36.65% and 10.6% respectively. capital.

VNPD operates mainly in the field of electricity generation, distribution and sale with the aim to ensure timely and sufficient supply of electricity according to the needs of the National Power System with high power quality and stability. . The enterprise mainly invests in and operates a number of small-scale hydropower plants such as Bac Binh, Nam Ma, and Khe Bo.

Operating in a field that is highly dependent on external factors such as weather, meteorology, hydrology…, VNPD’s business results also fluctuated wildly. However, the profit of this business is also regularly maintained below 200 billion per year. In 2022, VNPD also plans to be quite cautious with both revenue and profit dropping significantly compared to last year.

However, VNPD’s business results from the beginning of the year were unexpectedly better than expected. After 9 months, this business recorded net revenue of 524 billion dong and profit after tax of 218.7 billion dong, up 21% and 61% respectively over the same period. With the results achieved, this power enterprise has exceeded 88% of the profit target set for the whole year 2022.

If there are no big fluctuations causing the business to suffer heavy losses in the fourth quarter, VNPD will have the biggest profit year since its operation. This is one of the important driving forces for VPD stock to maintain its upward momentum from the beginning of 2022, besides the effect from the presence of large foreign shareholders.

Despite the sharp decline in the past 2 sessions, VPD’s market price is still 57% higher than at the beginning of 2022. The market capitalization value also increased by more than 1,000 billion dong, reaching approximately 2,800 billion dong.

Ha Linh/Market Lifestyle