The Master Chairman of Mercedes Car Dealership in Vietnam Eyes Selling Stocks as Market Price Surges Nearly 40% Since the Year’s Start

In the latest update, Mr. Do Tien Dung, Chairman of Ha Xanh Automobile Service Joint Stock Company (Haxaco, code: HAX), has registered to sell 700,000 HAX shares. Upon completion of this transaction, Mr. Dung’s holdings in Haxaco would decrease to 18.1 million shares, equivalent to a 16.82% stake.

The trading is expected to take place from July 8 to July 31, 2024. Mr. Dung stated that the purpose of this move is to restructure his investment portfolio.

The Chairman’s decision to sell comes as HAX shares have been on a positive trajectory since the beginning of the year and are currently trading near their two-year high. As of the market close on July 4, HAX shares were priced at VND 16,200 each, reflecting a 36% increase year-to-date. Based on this price, Mr. Dung could potentially pocket approximately VND 11 billion from the sale.

Previously, at the 2022 Annual General Meeting of Haxaco, Chairman Do Tien Dung made remarks about the company’s shareholders. He stated that shareholders are those who stand with the company during times of adversity and difficulty. On the other hand, he does not consider those who buy stocks to sell at a 50% profit or engage in wave-riding as genuine shareholders. He likened such individuals to “stock traders” or “parasites” who take advantage of the company for their own gain.

Haxaco is known for its distribution of luxury Mercedes-Benz vehicles in Vietnam. However, amidst economic downturns and consumers’ tightened spending, the company is undergoing a significant transformation by expanding its distribution of mid-range MG automobiles. This brand is believed to have an advantage in terms of growth due to lower interest rates on car loans, providing an incentive for consumers to purchase vehicles.

Chairman Do Tien Dung has declared that Haxaco aims to capture up to 40% of the MG market share by investing in ten dealerships without bank loans, only borrowing to import cars. With a sales team of approximately 500 employees, the company is committed to making MG a success. In his latest disclosure, Mr. Dung revealed that the MG automotive distribution segment is estimated to have contributed 90% of Haxaco’s profit in the second quarter of 2024.

Regarding Haxaco’s financial performance, according to the first-quarter 2024 financial statements, the company recorded a revenue of VND 1,038 billion, a nearly 5% increase compared to the same period in 2023. The company’s pre-tax profit reached VND 41 billion, a significant improvement over the low base of the first quarter of 2023.