A branch of Lien Viet Post Commercial Joint Stock Bank in the northern province of Bac Ninh. (Photo: bacgiang.gov.vn) Among the 122million shares of Lien Viet Post Commercial Joint Stock Bank (LienVietPostBankor LPB) brought to auction by the Vietnam Post on HNX recently, only 800 shareswere registered for purchase by a few individual investors.
With astarting price of up to 28,930 VND per share (1.27 USD), which is nearly 15 percenthigher than LPB's market price, the auction attracted few buyers. LPB sharesreceived attention for a few sessions after the information about the auctionwas officially announced, but quickly stagnated due to weak cash flow.
The recentauction of 35 million shares of Binh Duong Trade And Development JSC (TDC) witha starting price of 27,900 VND per share was also regarded as a failure as only50,000 shares were sold to four individual investors.
On auctionday, TDC's market price was 10 percent lower than the starting price of theauction, not to mention the time for the shares to be sent to the account tookup to a month or even a few months, making investors displeased.
The auction ofthe capital portion of the State Capital Investment Corporation (SCIC) at Chau DucUrban Development and Construction Joint Stock Company was also recentlycancelled due to no investors participating.
NTP stock ofTien Phong Plastic JSC has reached a price of approximately 70,000 VND pershare at the end of January 2021 after SCIC announced a plan to divest capitalin February, but the divestment has not yet been confirmed and NTP shares havedropped 10 percent from its market price.
Similarly, BMIshares of Bao Minh Corporation also touched 45,800 VND per share, but now aretrading around 38,000 VND per share.
At the end oflast week, some investors registered to buy shares of HUD1 Investment andConstruction JSC (HUD1) without carefully considering the health of thisbusiness. Interested investors must register to buy the whole lot with astarting price of 75 billion VND, equivalent to the market price of HUD1 beingtraded on the floor.
Bad debts,member enterprises that have ceased operations, and suspended projects are thethree most obvious disadvantages in this enterprise. In the 2017-2020 period,the debt/total assets and debt/equity ratios of HUD1 continuously increased,reaching nearly 96 percent and 582 percent in 2020.
The investmentin HUD 1.02 Investment and Construction Joint Stock Company (12.75 trillion VND)and the investment in CIC DECOR Architecture and Construction Joint StockCompany (1 billion VND) have not brought about profits, causing HUD1 to make aprovision for risks of 4.43 billion VND.
Currently,both of these units are temporarily suspending production and businessactivities, so the ability to recover capital at these enterprises has not beendetermined.
The long-termcapital contribution investment with Dai Thien Loc Company of 13 billion VND toimplement the Lien Bao-Bac Ninh project which has lasted since 2011 also facespotential risks in terms of investment./.
VNA
