The above regulations have surprised many investors. In particular, securities experts also have mixed opinions about the regulation, which is considered a “lifesaver” for businesses subject to mandatory delisting.
“Lifesaver” – Article 120 of the draft amendment and supplement to the Securities Law
On the stock market, in recent days, HVN shares of the National Airlines (Vietnam Airlines) have been hotly debated by investors, about whether they are part of the “exceptional cases” saved by the Government or not?
Because, according to the newly announced draft amendments and supplements to the Securities Law, Article 120 on mandatory delisting of stocks is supplemented with provisions on special cases.
There are still many mixed opinions about the “lifesaver” for businesses subject to mandatory delisting. Photo: Vietnam Airlines
In fact, as of 2022, Vietnam Airlines has lost money for 3 consecutive years and has negative equity, so it is subject to delisting according to the provisions of the current Securities Law. However, if the above additional provisions are approved, the Government may consider continuing to maintain the listing of HVN shares.
It is known that the State owns 86% of capital in Vietnam Airlines through the State Capital Management Committee at the enterprise and the State Capital Investment and Trading Corporation (SCIC).
Previously, Chief Accountant of Vietnam Airlines, Mr. Tran Thanh Hien, also expected HVN shares to continue to remain on the stock exchange.
He said Vietnam Airlines’ situation is very special. Before the Covid-19 pandemic, Vietnam Airlines was one of the enterprises with large capitalization, profitability and healthy finances on HoSE. However, the pandemic has a major impact on the global economy and the aviation industry, this is a very objective situation.
“I believe that State agencies and relevant agencies will research and evaluate the above factors objectively and carefully. We expect that HVN shares will still be maintained on the stock exchange” , Mr. Hien said.
On the stock market, reacting to this information, there was a session when HVN shares even went “purple” when they increased to 13,100 VND/share with large matching orders, nearly 3 million shares and blank sell orders, before decreasing. to the current price range at 12,450 VND/share.
In addition to Vietnam Airlines, another stock code is also subject to mandatory delisting but is also a ‘special case’, which is the HNG code of Hoang Anh Gia Lai International Agriculture Joint Stock Company.
Specifically, HNG has had 10 consecutive quarters of business losses (from the second quarter of 2021 to the third quarter of 2023) since officially belonging to billionaire Tran Ba Duong in 2021. HNG’s accumulated losses have ballooned. from more than 2,306 billion VND (early 2021) to nearly 7,450 billion VND (end of September 2023), equivalent to 3.2 times.
For two consecutive years 2022-2023, HNG plans to have a pre-tax loss of 2,300 – 2,700 billion VND. In 2022 alone, HNG will actually have a pre-tax loss of more than VND 3,465 billion.
At HNG’s 2023 annual shareholder meeting, billionaire Tran Ba Duong said: “There is no other way but to make losses.” According to him, HNG accepts business losses in 2023 and delisting to become stronger.
If losses continue in 2023, there is a high possibility that HNG shares will fall into mandatory delisting, because the company has had 3 consecutive years of losses on its financial statements. Currently, HNG shares have continuously remained under warning since September 7, 2020. By April 12, 2023, HNG shares were transferred to control.
Although the “delisting” decision is always near, HNG shares on the stock market have had unexpected developments, having climbed continuously in recent times.
Specifically, at the end of October 2023, HNG shares closed at 3,350 VND/share. However, currently HNG stock price has increased above the price range of 5,000 VND/share.
Mixed opinions on Article 120 of the Draft amendments and supplements to the Securities Law
Regarding Article 120 of the Draft amendments and supplements to the Securities Law and the ability of HVN shares to be “saved”, Mr. Truong Hien Phuong, Senior Director of KIS Vietnam Securities, commented that in the case of Vietnam Airlines, I agreed that they should be “saved”.
The reason is because, according to the law, mandatory delisting is a reasonable regulation for businesses that do not do well, especially in business administration activities, must be delisted to avoid causing harm. damages and losses for investors. However, there are also businesses that, in addition to business activities, also have socially meaningful activities and geopolitical support factors… and Vietnam Airlines is a typical example.
Therefore, when affected by the Covid-19 epidemic or a force majeure accident, it is not in everyone’s expectations, and it is not due to the business’s operating errors.
“It’s not because Vietnam Airlines is doing poorly or the business’s leadership is poorly run, leading to losses… but this is due to force majeure so I think we should create conditions and opportunities for businesses to recover.” The response is reasonable. Furthermore, it must be understood that these are individual cases, which must be considered, evaluated and finally approved by the Government,” Mr. Phuong said.
Regarding the concern that opening up “this special case” is a bad premise or a bad assessment of foreign investors? Senior Director of KIS Vietnam Securities said that this depends on the perspective and perspective of foreign investors.
“Enterprises must be specific, characteristic and special; that is, not all businesses will be resolved, but only those that serve the goal of national development but encounter difficult circumstances will be Obviously, multi-dimensional considerations must also be taken. Therefore, if they are professional foreign investors, they will also have a more objective perspective. Because if this decision is approved, it can be understood and sympathized.” Mr. Phuong added.
However, there are still mixed opinions about this regulation. According to securities expert Tran Ba Duy, Director of VPS Securities Investment Consulting, from the perspective of investors, especially HVN investors, this information is very good, but in terms of transparency, it is This regulation will create a bad precedent, that even though Vietnam Airlines is a state-owned enterprise, it still must follow a market mechanism.
“When participating in a game where Vietnam Airlines has its own mechanism, it seems to create a feeling that the game is not transparent and fair. Maybe when international organizations look at it, they will see that there is not fair play,” he said. Duy said.
