At the recent shareholder meeting of Saigon-Hanoi Commercial Joint Stock Bank (stock code: SHB), a shareholder raised a question about the fact that despite being a stock in the VN30 basket (30 large-cap stocks on the HoSE floor), SHB’s current price is only around VND 11,000 per share. The shareholder suggested that the leadership team should take specific measures to raise the share price above VND 12,000 or VND 15,000?
Responding to the shareholder, SHB’s Chairman of the Board of Directors Do Quang Hien said that the high or low share price is due to the market, “appetite”, and the choices of investors. When investors are interested in a stock code, they usually research and evaluate financial indicators, the value of the portfolio in the short, medium, and long term, and whether it is sustainable. The intrinsic “health” of the business determines the share price.
“SHB is a stock code with a continuously leading trading value on the market. Such liquidity shows that the trust of investors is very high” – said Mr. Do Quang Hien.
A shareholder questions the leadership of SHB bank
In 2023, SHB achieved a pre-tax profit of VND 9,239 billion. At the 2024 Annual General Meeting of Shareholders, shareholders approved the 2023 dividend payment plan at a rate of 16% in cash and shares. The bank also plans to increase its pre-tax profit in 2024 by VND 11,286 billion, an increase of 22% compared to the previous year.
However, at the end of the trading session before the 30-4 holiday, SHB’s share price closed at VND 11,450 per share. Since the beginning of the year, SHB’s share price has hovered around this level, sometimes increasing sharply to VND 12,500, but then quickly reversed downwards.
Similarly, at the 2024 Annual General Meeting of Shareholders of Nam A Bank (stock code: NAB), a shareholder also raised an issue related to share price. Speaking to shareholders, Nam A Bank’s leadership said that the bank’s business operations always adhere to the principles of transparency and publicity; as for the listing and fluctuations in share price, they are subject to the regulations on buying and selling transactions on the stock market.
“Shareholders expect the share price to continue to break through, but this depends entirely on supply and demand as well as the general trend of the market and the economy. Nam A Bank commits that all business activities are reflected objectively, honestly, and promptly so that investors and shareholders can participate and choose stocks” – a representative of the bank’s leadership said.
Also at the 2024 Annual General Meeting of Shareholders, Nam A Bank’s shareholders approved the plan to pay dividends in shares at a rate of 25%.
NAB is one of the bank stocks that had a strong breakout in the last months of 2023 and early 2024. After breaking away from the price level of VND 14,000 per share, NAB successively conquered the milestones of VND 15,000 and VND 16,000.
Currently, NAB’s share price is at VND 16,800 per share, the highest level in the last 3 years.
Regarding the outlook for banking stocks, many economic experts remain optimistic about this group of stocks in the context that the profit picture for the first quarter of 2024 as well as for the whole year of 2024 continues to be positive.
Yuanta Vietnam Securities Company’s 2024 banking industry update report, which was recently released, maintains a positive assessment of banking stocks. This assessment is based on the expectation that net interest income will improve this year thanks to higher credit growth (about 15%) and lower capital costs due to reduced pressure on provisions for credit risk, and improved asset quality.
