Mr. Truong Quang Minh, Chairman of the Board of Directors of Vinahud Housing and Urban Development JSC (code: VHD on UPCoM), has recently registered to purchase nearly 7.7 million VHD shares for personal investment. The transaction is expected to take place from December 2 to 31, 2024.
If successful, Mr. Minh’s ownership in Vinahud will increase from 4.51% to 24.74%, equivalent to 9.4 million shares.
Vinahud Chairman Truong Quang Minh. Photo: Finance and Life
The Chairman’s desire to accumulate a large number of shares comes amid low liquidity in VHD trading, with an average of about 1,600 shares traded per session.
In the stock market, VHD’s share price dropped from the 15,000 VND/share range in late October to a year-low of 6,200 VND/share on November 26, a plunge of more than 58% in almost a month.
In the last two sessions, VHD’s market price unexpectedly hit the ceiling (November 27-28) to 8,100 VND/share. By the morning of November 29, VHD shares continued to rise to the ceiling at 9,000 VND/share.
Mr. Truong Quang Minh, Chairman of Vinahud’s Board of Directors, is also a major shareholder of the R&H Group. Both companies are steered by Mr. Nguyen Minh Tuan, who recently stepped down as Vinahud’s CEO on September 6.
In the third quarter of 2024, Vinahud reported a net loss of 51.2 billion VND, bringing the nine-month loss to 161.5 billion VND, higher than the 122 billion VND loss in the same period last year, mainly due to financial expenses exceeding revenue.
The dismal business performance caused Vinahud’s accumulated loss as of September 30, 2024, to increase to 296 billion VND. Owner’s equity at the end of the period was 84.5 billion VND, down 66% from the beginning of the year.
Earlier, in early September, Vinahud’s extraordinary general meeting of shareholders approved the transfer of 100% of the capital contribution in Me Linh Thinh Vuong JSC to VNC Construction JSC. The expected transfer price is not lower than 980 billion VND, and the proceeds will be used to repay debts at TPBank.
Me Linh Thinh Vuong JSC owns 27.8 million shares, equivalent to 40% of the capital of Prime Land Real Estate Investment JSC, the investor of the 40-hectare Lang Hoa Tien Phong residential project in Me Linh District, Hanoi.
