A stock was “rescued” after 19 consecutive floor sessions, more than 10% of companies changed hands in the blink of an eye.

In that context, the stock plunged unprecedentedly, the company’s leaders suddenly made a move to “massively” divest capital.

After 19 consecutive floor sessions, DDG shares of Indochina Import-Export Industry Investment Joint Stock Company (Indochine Imex) were suddenly “rescued” quickly. The bottom-fishing money poured in and pulled this stock to change color from floor green to purple just a few minutes after opening session 10/5.

More than 6.4 million shares, equivalent to 10.7% of the total outstanding shares of DDG, changed hands in the blink of an eye. In which, most orders matched at floor price with 5.4 million shares, the rest were scattered on price steps from reference to ceiling.

Updated to 9:40 am on May 10, DDG is still trading at the ceiling price of 6,600 VND/share with a buying surplus at the highest price of more than 5.5 million shares. However, compared to the time before the plunge in early April, this stock has “evaporated” more than 83% of the market price.

The fall of DDG can be considered as unprecedented in history when a stock plummeted from the historic peak to the bottom since its listing in just one month. In that context, a series of company leaders and related people continuously registered to sell shares, making shareholders feel like sitting on fire.

During the period from May 10 to June 5, 2023, Chairman of the Board of Directors Nguyen Thanh Quang registered to sell shares twice with the number of 324,000 shares and 908,000 shares respectively. Ms. Tran Ngoc Phung – wife of Mr. Tran Kim Cuong, Deputy General Director of the company also registered to sell all more than 2.7 million shares owned by DDG.

Similarly, Ms. Tran Kim Sa – member of the Board of Directors cum General Director registered to sell another 498,500 shares. Ms. Yang Kieu An – Ms. Sa’s daughter also registered to sell all 476,200 holding shares for personal financial reasons. Yan Tuan Anh, another son of Ms. Sa, is currently in charge of corporate governance, registering to sell more than 1 million shares of DDG, equivalent to more than half of the shares held.

In the face of great fluctuations, DDG’s management confirmed that the company was still operating normally and there were no bad fluctuations affecting the stock price. The decrease in DDG’s price was due to the negative movements of the stock market recently, which affected investor’s psychology. The drop in stock prices is due to market supply and demand and is beyond the control of the company.

In addition, the DDG side also said that many leaders have registered to sell shares to fulfill financial obligations to securities companies. “Once the stock market stabilizes again, the Chairman and CEO will register to buy shares again ,” he added.

Regarding the business plan for 2023, DDG sets ambitious targets with expected revenue of VND 1,080 billion and profit after tax of VND 56 billion, up 11% and 27% respectively over the previous year. The targets are developed based on the supply plans for steam, heat and other products.

However, DDG’s management believes that the business will face many difficulties in 2023. Accordingly, by the end of 2022, the business and export of Biomass will be interrupted, many production plants have to close. Due to the difficulties of businesses in VAT refund, DDG reduced the revenue of this item.

Right in the first quarter of the year, DDG recorded net revenue down 8% y/y to VND159 billion. The cost of capital did not decrease, making the company’s gross profit reached 12 billion dong, down 55% compared to the first quarter of last year. Gross profit margin halved from 15% to 7.4%. After deducting expenses, DDG’s net profit was only 197 million dong, down 99% over the same period and the lowest in the history of this business.

Ha Linh/Market Lifestyle