The Unusual Price Graph: A State-Owned Enterprise’s Stock Soars Over 3,200% in Three Months

While hovering below the 1,300-point mark, PTX shares of Petrolimex Nghe Tinh Transportation and Services Joint Stock Company have been consistently accelerating.

From a meager price of VND 640 at the end of May, PTX skyrocketed to a historic peak of VND 21,400 per share on August 23, marking a nearly 33-fold increase (over 3,200%) within approximately three months. Notably, examining the price chart over the past three months reveals that PTX has not witnessed any sessions in the red, but only a continuous sequence of green, purple, and yellow.

The consecutive surge in the share price prompted PTX to issue an explanation in July. However, the company reiterated the standard response that the drastic increase in stock price was primarily driven by supply and demand factors in the stock market. They emphasized that there were no direct influences or impacts on the trading price in the market.

Despite the soaring market price, PTX’s liquidity remained lackluster, often matching only 100 units. A sudden spike occurred during the sessions on August 22 and 23, with record-breaking matched volumes of 16,500 and 34,300 units, respectively.

This headlong ascent in the share price of the petroleum transportation company emerged shortly after a substantial cash dividend payout. In early July, PTX disbursed nearly VND 10 billion in cash dividends for the year 2023, representing a 15% dividend ratio, based on the June 18 record date.

In reality, over the past five years, this petroleum transportation and services company has consistently distributed cash dividends ranging from 8% to 10%. Nonetheless, 2024 marks the year with the highest cash dividend payout in the company’s history.

Petrolimex Nghe Tinh Transportation and Services Joint Stock Company is a subsidiary of Petrolimex Vietnam and was established through the equitization of state-owned enterprises, as per Decision No. 1364/2000/QD-BTM dated October 3, 2000, issued by the Ministry of Industry and Trade.

In 2018, the company officially commenced trading on the UPCoM. Following multiple rounds of capital increases, PTX presently boasts a charter capital of nearly VND 64 billion, with the parent company, Petrolimex Service Joint Stock Company, holding 3.2 million shares, equivalent to a 51% stake.

The company’s primary business activities encompass petroleum transportation, wholesale and retail of petroleum, and driver training and testing for motor vehicles. Petroleum transportation services constitute the core business, with a fleet of 81 vehicles catering to the transportation and supply needs of petroleum in Nghe An, Ha Tinh, parts of Thanh Hoa and Quang Binh provinces, and Laos.

Regarding financial performance, PTX Nghe Tinh has been generating thousands of billions in revenue annually (except for 2020 due to the impact of COVID). 2020 was also the sole year when the company experienced an interruption in its profit growth trajectory, which had been ongoing for a decade. In 2023, the company’s after-tax profit surged by more than 21% to VND 12.5 billion, marking a record high since its inception.

For 2024, the company anticipates revenue and pre-tax profit to reach VND 1,843 billion and VND 10.4 billion, respectively, representing decreases of 12% and 14% compared to the previous year. The projected dividend ratio stands at 10%, lower than the 2023 level.

According to the semi-annual 2024 financial report released in mid-August, PTX’s revenue for the first six months of the year amounted to VND 1,075 billion, reflecting a 4% increase compared to the same period last year. The company’s after-tax profit reached VND 7.56 billion, signifying a 38% surge relative to the corresponding period. Despite the profit uptick, PTX’s gross profit margin remains slender, improving from 6% to 7% in the first half of the year, considering its revenue in the billions.