Vinhomes completed half of the plan to buy treasury shares

Ending today’s session, Vinhomes Joint Stock Company (VHM) purchased more than 12.3 million shares. This is the 19th consecutive session that this business has collected its own shares after registering to buy 370 million units. Cumulatively from October 23 until now, Vinhomes has purchased nearly 174.7 million shares, equivalent to 47.2% of the plan.

During this period, VHM’s market price decreased by more than 13% from 47,000 VND to 40,800 VND per share. Estimated according to the average closing price, the company spent nearly 7,418 billion VND to implement.

In the middle of last month, Vinhomes registered to buy a maximum of 370 million shares, equivalent to 8.5% of the company’s total outstanding securities. Transactions are carried out by order matching or agreement method from October 23 to November 21. Thus, they have 3 sessions left to collect more than 195 million shares as planned.

According to a resolution announced in early August, the VHM Board of Directors believes that the market price of shares is lower than the real value. Therefore, the company wants to buy back treasury shares to ensure the rights of themselves and shareholders. Experts evaluate this as the largest treasury stock purchase in the history of the Vietnamese stock market.

The capital source for implementation will come from undistributed after-tax profits according to the 2024 semi-annual reviewed financial report. The company affirms that the above plan will be funded by available cash and operating cash flow, thanks to revenue. Revenue from selling some projects.

In the third quarter, Vinhomes achieved consolidated revenue of more than 33,320 billion VND, an increase of nearly 2% over the same period last year. Accumulated for 9 months, the company’s consolidated net revenue reached nearly 70,000 billion VND, down a quarter.

After deducting expenses, this investor’s after-tax profit is about 20,600 billion VND after 9 months. According to Vinhomes, this result is supported by the handover of Vinhomes Ocean Park 2-3 projects and recording business results at the Vu Yen, Hai Phong project during the period. However, this profit is only about 63.5% of the same amount last year because the first quarter profit was quite low at only 904 billion VND.

Vinhomes said that by the end of the third quarter, the company had more than VND 123,000 billion in unrecorded sales thanks to positive sales results in major cities. “This will be a solid foundation for the growth of Vinhomes’ business results in the coming time,” this investor said.

By the end of September, Vinhomes’ total assets and equity reached VND 524,684 billion and VND 215,966 billion, respectively. Both of these indicators increased by about 18% compared to the beginning of the year. This enterprise currently has 20,621 billion VND in cash and cash equivalents.