In response to information from the State Securities Commission regarding stock manipulation of APS, API, IDJ stocks, Asia-Pacific Securities Corporation (Apec Securities - HNX: APS) has issued an announcement, affirming that the company is not a related entity and/or has activities related to this incident.

Accordingly, the above incident does not affect or change the long-term orientations or normal operations of APS.

In addition, APS shared that, as soon as receiving the information, the company's board of directors also held a meeting and quickly put forth measures and plans to ensure that the company's business activities in the coming time will be stable in the new situation, in accordance with the set goals and plans.

The company informed that the case is still under investigation and there is no official conclusion yet. When there is specific information, the company commits to fully and promptly update customers, partners and shareholders.

The incident occurred at the above companies, all of which are part of the Apec Group Corporation (Apec Group) ecosystem. It is known that all three companies are key enterprises in the Apec Group ecosystem and the owner, Nguyen Do Lang, is listed on the Hanoi Stock Exchange (HNX).

Previously, in April 2023, three stocks API, APS, and IDJ all skyrocketed by 46% in just 2 months, and are now simultaneously witnessing a deep drop to 12,600 VND/share.

Notably, within just one week, from April 1 to April 7, this group of stocks all increased from 34% to nearly 50%. Many investor comments on stock forums even praised these as the "king stocks" of the future.

Coincidentally, all three of these stocks had a period of "shocking" increases of more than 10 times their previous market price, ignoring all investor doubts about the real value of the stocks as well as business results.

The Apec trio

Asia Pacific Investment Corporation (HNX: API) was established on July 31, 2006 with initial charter capital of VND 22.95 billion. Charter capital as of December 31, 2022 reached VND 840.8 billion. Main business lines are real estate investment and trading.

In 2009, the company listed on the UPCoM stock exchange with the code API. In 2010, the company officially listed on the HNX. Asia - Pacific Investment currently owns 5 subsidiaries with a ratio of 51% - 100% and one affiliated company.

In 2021, API shares caused a stir with a doubling in just a few months, reaching a historic peak of VND45,650/share (pre-adjusted price was VND10,000-15,000/share) in November 2021, 6 times higher than before the increase.

However, right after reaching the historical threshold, API shares turned around and fell too quickly and too deeply, down to 12,600 VND/share, equivalent to a 72% decrease in value after 7 months.

At the 2021 Annual General Meeting of Shareholders, Deputy General Director Nguyen Quang Huy also stated that API shares were like compressed "springs" waiting to break out. With the available potential, the long-term valuation of VND 200,000/share for API is not expensive.

Shareholders at this meeting also questioned price manipulation that caused API shares to increase sharply. The company's leaders also affirmed that they were acting in accordance with the law and that if signs of API fraud were discovered, they would commit to strict handling.

About Asia - Pacific Securities Corporation (HNX: APS) was established in 2006 with a charter capital of 60 billion VND, by 2023, this figure will be 830 billion VND. APS's main business lines and activities are: securities brokerage, securities trading, securities investment consulting and securities depository.

Starting at a lower price than API, APS shares with an initial "ice tea" price of around VND 5,000/share also had a strong acceleration to a historical peak of VND 59,900/share on November 18, 2021, an increase of 14 times in less than 1 year.

In line with the development of API stock, right after reaching an unprecedented peak, APS stock recorded a sharp decline that left investors almost unable to react. After 19 months, the market price of this stock is only 14,300 VND/share, equivalent to evaporating about 76% of its value compared to the peak.

However, at a time when the stock was still building a historical peak, APS held the 2021 General Meeting of Shareholders, at which time the board of directors and shareholders attending the meeting wore purple scarves and shouted the slogan: "APEC - creativity, APEC - dedication, APEC - service, APEC - determination, APEC - profit, APEC - determination to profit" attracting the attention of many investors in the market.

Even the business leaders also stated: "Currently, the P/E ratio of APS stock is 6.9 times, while the average P/E of the industry is at 18 times. Thus, it can be seen that APS stock valuation is cheap, and can grow 2 to 2.5 times in the near future."

The last member mentioned by the State Securities Commission in the announcement is IDJ Vietnam Investment JSC (HNX: IDJ), formerly IDJ International Finance and Enterprise Development JSC, established in 2007 with a charter capital of VND149.6 billion. In 2010, the company's shares were listed and traded on the HNX.

The company operates mainly in the fields of Infrastructure investment and construction; Business purchase and sale consulting; Business development support services; Establishment and management of investment projects, etc.

Following the general trend of Apec stocks, IDJ shares also rose 5 times higher than the average market price, reaching a peak of VND 42,470/share in the trading session on November 18, 2021.

However, IDJ's price then also suffered the same situation of "falling without support", up to now, this stock is only 13,200 VND/share, down 69%. The damage to shareholders who "followed" the high price will be very large if they do not sell their stocks in time during the price drop .