During this year’s Annual General Meeting, the issue of share prices continued to attract attention from shareholders. Among them, a shareholder asked the Bank’s Management Board why SHB shares, despite being included in the VN30, were currently only trading at VND 11,100 per share, even falling below par value at times. This had been a cause of concern for shareholders. Therefore, the shareholder requested that the Management Board take specific measures to raise the traded share price to over VND 12,000 or VND 15,000.
Responding to this issue, Chairman Do Quang Hien acknowledged that the share price was low, as the shareholder had mentioned. However, he emphasized that the perception of whether a price was low or high was subjective to investors, based on their preferences and choices.
According to Mr. Hien, when investors are considering a stock, they need to evaluate the company’s financial ratios, as well as the sustainability of its portfolio’s value over the short, medium, and long term. Ultimately, the intrinsic health of the business determines its share price. As a shareholder, everyone wants to see a high share price.
“However, we take pride in the fact that SHB is a stock with consistently high liquidity. We have seen a lot of interest in it on the HOSE,” emphasized Chairman Do Quang Hien. “You all will make your own assessments. Shareholders make their own choices. The high liquidity we see indicates that investors have great confidence in us.”
Speaking further about shareholder concerns regarding share dilution through stock dividends, the Chairman of SHB stated: As a banker, in addition to cash dividends, we must also focus on improving the Bank’s financial health, which is a sustainable approach. Increasing capital also contributes to and serves the purpose of investment capital and developing the business network, which brings value to the Bank. This, in turn, raises the share price. Therefore, we must prioritize improving the company’s capabilities. That is SHB’s shared strategic and long-term vision.
SHB Chairman Do Quang Hien at the 2024 Annual General Meeting of Shareholders
SHB shares were selected by the Ho Chi Minh City Stock Exchange (HOSE) to be included in the VN30 index during the restructuring period in July 2023. The VN30 index, also known as the blue-chip stock basket, represents a group of stocks from large-cap companies in the market.
In recent times, SHB shares have consistently led the market and the entire banking sector in terms of trading volume. Most recently, the stock recorded a trading volume of close to 99 million units in the trading session of April 15th. Prior to that, SHB shares had also reached a record high liquidity of over 127 million units in the trading session of January 31st, 2024.
The fact that shareholders have expressed their expectations for the market price of SHB shares was not only evident at this meeting. Previously, at the 2021 Annual General Meeting of Shareholders, some shareholders expressed delight at the significant increase in the share price within a short period, from VND 6,000 per share to around VND 27,000.
Regarding this matter, at the 2021 AGM, Mr. Do Quang Hien stated that the Bank’s Management Board is only responsible for performing well and practicing good governance so that SHB can grow healthily and transparently. Investors will then analyze and evaluate the quality and effectiveness of the company’s operations themselves. The value of the business determines the value of its shares. The increase in the price of SHB shares also shows that the company has attracted investor interest and affirms SHB’s value in the present and future.
