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Last updated: Monday, September 25, 2017

 

10 Years after All-time High, Many Stocks Slipping Away

Posted: Monday, March 13, 2017


On March 12, 2007, VN-Index set all-time high of 1,170.67 points. After 10 years, the gauge sits anchored around 700 points and many old-time big names have lost most of their market value, or even de-listed their shares.

Over the past 10 years, the Vietnam stock market has experienced new changes with bigger scale and higher quality. Nevertheless, many stocks cannot regain their old positions 10 years ago. Even, many delisted their stocks from local bourses.

The following are used-to-be famous, big names on Vietnam stock market 10 years.

Sudico (SJS) bursts with property, stock bubbles
The first name is Song Da Urban & Industrial Zone Investment and Development Joint Stock Company (Sudico), used to be one of the hottest tickers on the local exchange. In 2007, SJS surged to VND728,000 per share.

However, the current market price is VND27,000, much lower than the diluted peak of VND122,000 in June 2007 (shares were diluted after many additional issues).
SJS slump was attributed to unsuccessful property projects e.g. in An Khanh in 2008 and 2009. The tumble of the property market challenged the company’s operations. SJS suffered two straight years of loss in 2011 and 2012.

In recent years, the real estate market has recovered and the company’s performances also improved. Consequently, stock prices started to gain ground.

Sacom (SAM) loses business directions
As one of two first listings in Vietnam and used-to-be blue-chip, SAM now lost the interest of investors.

In February 2007, when the Vietnam stock market peaked, SAM shares were priced at VND250,000 or diluted to VND48,000 after several splits. Unfortunately, SAM share is now traded at VND8,000.

There are many reasons cited for SAM's sliding. The first is the market revaluation to a more reasonable value than 10 years ago. Besides, the key is its unclear business orientation.

From a big cable producer, SAM expanded business into real estate and even planned to become a major shareholder of Vinamotor. Its business performances tumbled in recent years. In 2016, SAM saw a 58 per cent drop in net profit to VND23 billion,

Agifish (AGF) worsens after marriage with HVG
Angiang Fisheries Import & Export Joint Stock Company (Agifish) used to be one of leading seafood exporters in Vietnam. Its sales steadily increased year after year until it was taken over by Hung Vuong Corporation (HVG) in 2014. The company’s business performance plunged from the marriage. In the fiscal year 2015, Agifish ran a net loss of VND3 billion. In 2016, the company earned just VND4 billion of profit.

Weak business performances dragged AGF shares down to VND9,000, much lower than the all-time high of VND150,000 10 years ago (VND47,000 after diluted by splits).
The collapse of Tribeco (TRI) – Well-known beverage brand

Used to be a major brand in the beverage industry, Tribeco was repeatedly voted high quality Vietnamese goods. However, after its mistakes in business cooperation strategy with Kinh Do Corporation, especially with foreign partner Uni-President, Tribeco sank into huge losses and went bankrupt in 2012. TRI share valued VND1,800 on the last day on the stock exchange ( April 9,2012).

After Kinh Do divested from Tribeco, Uni-President became the new owner of Tribeco and the Taiwanese conglomerate took full control of the Tribeco brand.

This is a very unfortunate case for a Vietnamese profit-making brand that has become a “victim” of industry giants’ game.

TTT








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