Share price hits ceiling for three session, driving up price by half.
After announcing positive business results, the market capitalization of the Vietnam Seaproducts Joint Stock Corporation(Seaprodex) increased 50 per cent in just three sessions where its ceiling was reached.
Seaprodex’s shares (UPCoM stock code SEA) increased in the three sessions to VND19,000 ($0.83) per share. Though still short of the peak reached late last December, the share price has increased 41 per cent since the beginning of March.
All 125 million SEA shares have been traded on UPCoM since December 23, 2016, with a reference price on the first trading day of VND11,400 ($0.5) per share. It rose quickly, hitting its ceiling for three consecutive sessions and peaking at VND23,800 ($1.04) per share. The Southern General Export-Import Corporation (Geleximco) sold all its 18.75 million shares around this time, withdrawing more than VND290 billion ($12.7 million). SEA shares then declined sharply, to as low as VND12,000 ($0.53) per share.
Its recent rise has been put down to the positive business results in 2016 contained within its consolidated financial statements for the fourth quarter of 2016. Annual revenue was nearly VND1.513 trillion ($66.3 million), up 6 per cent compared to 2015. But due to increased costs of goods sold, gross profit was VND118 billion ($5.17 million), down VND4 billion ($180,000).
However, it also recorded nearly VND310 billion ($13.6 million) in profit from associates and joint ventures, of which VND304 billion ($13.32 million) was from Proconco Vietnam Joint Stock Company, compared to VND56 billion ($2.45 million) in 2015. 2016 after-tax profit was VND308.4 billion ($13.57 million), 4.2 times higher than the profit in 2015. After-tax profit for parent shareholders was over VND302 billion ($13.2 million).
At the end of 2016, the company’s undistributed earnings after tax reached more than VND514 billion ($22.52 million). Equity was VND1.879 trillion ($82.3 million), of which contributed capital was VND1.25 trillion ($54.8 million).