More than 15 million MWG shares were net purchased by foreign investors in less than 2 weeks, corresponding to an amount spent of about 800 billion VND.
After about a month of massive net selling, foreign investors have tended to net buy again across the market in the past few sessions. Foreign cash flows are rushing to collect goods, especially in a stock that has been "turned away" for nearly a year, Mobile World (MWG).
In fact, foreign capital flows gradually "migrated" from Mobile World from August 2023, when the ownership ratio of foreign investors (foreign room) in this stock code is no longer maintained at the maximum level of 49 % which is decreasing day by day. There was a time when MWG had open room of up to 5%, equivalent to "holding" more than 71 million shares.
This is something that has rarely been recorded at this retail business in recent years. Under strong selling pressure, MWG's market price even decreased by up to 40% between the end of the third quarter and the beginning of the fourth quarter of 2023.
However, good news returned to Mobile World when in the last 9/10 sessions, foreign investors were net buyers, the value was increasing day by day, and the latest session on April 9 recorded foreign investors net buying nearly 300 billion in Vietnam. MWG. At the end of the session on April 9, the ownership rate of foreign investors in Mobile World was 44.55%, an increase of about 1 percentage point compared to the end of March.
Thus, more than 15 million MWG shares have been "collected" net by foreign investors in less than 2 weeks, corresponding to an amount spent of about 800 billion VND based on market price on the floor alone.
Thanks to attracting money again, MWG's market price is quietly reaching a 7-month peak, closing on April 9 at 52,800 VND/share, corresponding to an increase of 23% since the beginning of 2024. Liquidity has also improved sharply with goods. Tens of millions of units changed hands, with a total value of over trillions per session.
The most basic reason for changes in behavior and attitudes of foreign investors may stem from the business situation in the Mobile World, which is showing signs of improvement. Although 2024 is forecast to continue to be a challenging year for the retail industry, the profit after tax target of 14 times higher than the previous year to 2,400 billion, emphasized by business leaders, is not a high number and is within reach.
In particular, the milestone of Bach Hoa Xanh supermarket chain (BHX) reaching its break-even target from the end of 2023 and maintaining it until now is considered a leverage for the business results of this retail giant.
MWG Chairman of the Board of Directors Nguyen Duc Tai himself affirmed that MWG's growth in the next 5 years will rest primarily "on the shoulders" of the Bach Hoa Xanh chain. Mr. Tai assessed that this is a very large industry and currently this supermarket chain does not account for too much market share, so there are still many opportunities to expand.
In the first 2 months of 2024 alone, MWG's accumulated revenue reached 21,613 billion VND, an increase of 14% over the same period last year and completing 17% of the whole year's revenue plan (125,000 billion).
Most store chains grew well, the revenue of The Gioi Di Dong and Topzone chains recorded revenue of 4,582 billion VND, while the Dien May Xanh chain reached 10,309 billion VND, the total revenue of these chains increased by about 3 % over the same period. Bach Hoa Xanh supermarket chain brought in 6,095 billion VND in revenue after the first 2 months of 2024, nearly one and a half times the same period last year.
In addition, there is the appearance of new shareholders. CDH Investments (through Green Bee 2 Private Limited) has just announced that it has completed the purchase of 5% shares in Bach Hoa Xanh Investment and Technology Joint Stock Company (Bach Hoa Xanh Investment) - a subsidiary of Bach Hoa Xanh Investment Joint Stock Company. from Mobile World (code MWG).
CDH is not a strange name to Vietnam as it invested in MWG then successfully divested nearly 10 years ago and has only returned now. After the above deal, MWG will still be the controlling shareholder of BHX Investment, in addition to the participation of CDH Investments and the company's management board.
Related information, on April 15, 2024, HoSE will announce the list of stocks belonging to the VN-Diamond Index, which will then take effect from May 6, 2024. According to forecasts of many different securities companies, MWG shares may be removed from the VNDiamond index.
Currently, the market has 3 ETF funds using the VNDiamond index as a reference including DCVMVMVN DIAMOND, MAFM VNDIAMOND and BVFVN DIAMOND with a total net asset value of about 16,200 billion VND, DCVMVMVN DIAMOND alone is nearly 15,800 billion VND.
These three ETFs hold more than 50.2 million MWG shares. If this code is removed from the VNDiamond basket, it is expected that these shares will be sold by the three ETFs to remove it from the list.
Tags:
Foreign investors