At the end of the trading week from April 14 to 19, VN-Index decreased by more than 100 points compared to the end of the previous week, down to 1.174 points. This was the biggest weekly loss since the beginning of the year.
Liquidity on the HoSE floor reached over 130,589 billion VND, an increase of 36.1% compared to the previous week, indicating that selling pressure has increased significantly.
In contrast to the “fiery red” development of the market and hundreds of other stock codes, QCG stock of Quoc Cuong Gia Lai Joint Stock Company still recorded an increase of nearly 24% and closed the week at VND 17,850/share. In the past 5 sessions, QCG has had 3 ceiling price increases and 2 strong increases with an amplitude of over 4%.
QCG was also the leading stock in the top 5 stocks with the strongest increase on the HoSE floor during the week. Following are the codes TTE (up 21.3%), TNC (up 13.3%), QBS (up 12.8%) and finally SCD (7.4%).
In the longer term, QCG stock has almost doubled (+94%) within the past month and is currently more than 3 times (+329%) higher than the price a year ago.
QCG stock movement in the past 3 months Source: Fireant
TTE stock movement 3 months ago, now priced at VND 10,650/share Source: Fireant
The recent sharp increase in QCG stock price has taken place in the context of the enterprise being ordered by the court to refund more than VND 2,800 billion to Ms. Truong My Lan.
Meanwhile, the business activities of Quoc Cuong Gia Lai are not outstanding, with net revenue in 2023 reaching only VND 432 billion, a decrease of 66% compared to the same period; after-tax profit is only VND 3.2 billion, only 10% of the result achieved in 2022.
The net cash flow from operating activities in 2023 of the company was negative by nearly VND 33 billion, while in 2022 it was also negative by more than VND 121 billion. By the end of 2023, Quoc Cuong Gia Lai’s total assets reached nearly VND 9,600 billion, in which the majority is inventory with an ending balance of more than VND 7,000 billion (accounting for nearly 75%).
Notably, this enterprise only has VND 28 billion in cash. In addition, the financial debt is over VND 4,500 billion, accounting for nearly half of the total capital, in which the main part is short-term debt.
On the contrary, the top 5 stocks with the strongest decrease in the week are FIR (down 23.4%), ST8 (down 21.2%), DXG (down 21.2%), BSI (down 20.7%) and NHA (down 19%).
The stock with the strongest decrease in the week was FIR of First Real Estate Joint Stock Company, currently priced at VND 6,560/share. In the past 10 sessions, this stock has not had any price increase sessions with 3 floor price decreases, 6 decreases, and 1 standstill session. Compared to the beginning of the year, FIR stock has “evaporated” by more than 66%.
FIR stock movement in the past 3 months Source: Fireant
According to the recent financial report, First Real’s business results have many positive signals. Specifically, revenue in the first quarter of 2024 (from October 1, 2023 to December 31, 2023) reached VND 54.3 billion, an increase of more than 60% over the previous quarter (fiscal year ending September 30) but lower by VND 1 billion compared to the same period.
Similarly, after-tax profit in the quarter reached VND 9.7 billion, 5 times higher than the VND 1.8 billion in the previous quarter but 34% lower than the same period last year.
