Firms on edge of delisting after losses

Saturday, Feb 15, 2020 07:37

Fish delivered to An Giang Fisheries Import Export JSC for processing. The company will move to the Unlisted Public Company Market (UPCoM) after its shares were delisted from the Ho Chi Minh Stock Exchange (HoSE). — Photo agifish.com.vn

An Giang Fisheries Import Export JSC will start trading on the Unlisted Public Company Market (UPCoM) after being delisted from the stock market.

An Giang Fisheries will debut on UPCoM on February 17. The firm was kicked off the Ho Chi Minh Stock Exchange (HoSE) on Friday.

In mid-January, HoSE decided to delist the firm after the company reported losses for three straight financial years and failed to submit financial reports to HoSE during that three-year period.

In 2018-19, An Giang Fisheries reported a loss of VND111.7 billion (US$4.8 million). The company also suffered a loss of VND178 billion in 2017-18 and VND187 billion in 2016-17.

Other listed companies on the edge of delisting include PetroVietnam Construction Corporation (HNX: PVX) and Construction No 6 JSC (HNX: CT6).

PetroVietnam Construction’s parent unit in 2019 reported a loss of VND198 billion, while earnings at member firms have not been revealed.

The company recorded a loss of VND416 billion in 2017 and VND414 billion in 2018.

Reporting a loss in 2019 meant the corporation and its member companies had suffered losses for a third year in a row, allowing the Ha Noi Stock Exchange (HNX) to delist the company.

PetroVietnam Construction Corp suffered losses in 2012 and 2013 but managed to earn a profit the following year to avoid a listing cancellation.

Construction No 6 JSC reported a loss of VND111 million in 2019, which was a big improvement from 2017-18. The firm reported VND10-13 billion worth of losses in 2017-18.

Vinaconex Investment and Tourism Development JSC (HNX: VCR) has also reported a three-year loss of VND35.3 billion from 2017-19.

The poor performance of these companies also reflects in their substandard share prices.

An Giang Fisheries shares fell 6.4 per cent to end Friday at VND2,910 per share. Its shares had traded below the standard price level of VND10,000 per share since July 2017.

PetroVietnam Construction Corp shares finished Friday at VND1,000 per share, having traded below VND3,000 for three and a half years.

Construction No 6 JSC shares closed Friday at VND3,400 per share while Vinaconex Investment and Tourism Development JSC shares ended the week at VND11,000 per share.

A total of 118 stocks on both HCM City and Ha Noi stock exchanges are being watched by the market regulators after the companies reported big losses in 2019.

Those companies include some well-known firms such as farm businesses Hoang Anh Gia Lai (HoSE: HAG) and HAGL Agrico (HNG), seafood processor Hung Vuong (HoSE: HVG), and Truong Thanh Furniture Corporation (HoSE: TTF). — VNS

Comments (0)

Statistic