Truong Thanh Wood, once hailed as the "king of wood" and a leading enterprise in the wood product export sector, is facing dismal business performance and stagnant stock prices, leading to increasing investor disappointment.
According to Truong Thanh Wood's consolidated financial report for the second quarter of 2024, net revenue reached VND 372.94 billion, a slight decrease compared to the same period last year. However, after deducting expenses, the company incurred a net loss of VND 3.99 billion, while the previous quarter saw a net profit of over VND 11.5 billion.
Truong Thanh Wood explained that the lower loss in Q2/2024 compared to the same period last year (a loss of up to VND 41.58 billion) was due to the company's improved control of production costs and the reversal of provisions for doubtful receivables from the group. In addition, the company's financial revenue increased from exchange rate differences.
Truong Thanh is a leading enterprise in the field of wood product export.
For the first six months of the year, Truong Thanh Wood achieved net revenue of 696 billion VND and after-tax profit of over 7.5 billion VND, thanks to stable production and business operations and continued overcoming of previous difficulties. This profit figure is positive compared to the nearly 40 billion VND loss in the same period last year. Despite this, TTF shares have continued to plummet in recent months.
By the end of the morning trading session on August 1st, TTF's share price continued to fall by 0.81% to 3,680 VND, a decrease of approximately 26% from this year's peak of over 5,000 VND.
Many investors say they have held TTF shares since the VN-Index peaked at over 1,500 points and are now losing nearly 80%. At that time, TTF's share price reached a multi-year high of over 17,000 VND, attracting numerous investors who expected the price to rise further to 20,000 VND, and some securities companies even predicted it could reach 30,000 VND.
Currently, TTF's share price is less than 4,000 VND, not even enough for a glass of iced tea, and it's also under warning from the Ho Chi Minh City Stock Exchange. Investors are anxious, feeling regretful, thinking, "Cutting losses is a pity, but holding on means not knowing where the bottom is"...
In its report explaining the measures and roadmap for addressing the situation of its securities being placed on the warning list in Q2/2024, Truong Thanh Wood's management stated that in the context of a challenging market, the company has made efforts to maintain relationships with partners and customers both domestically and internationally, ensuring independence from any specific market.
The stock price continues to fall, leaving investors disappointed. Source: Fireant
"Despite international markets increasingly imposing strict standards and regulations on product quality and origin, all of the company's exported products meet these requirements; expanding export markets. This year, the company will continue to implement measures and a roadmap to rectify the situation of its securities being placed on a warning list," - Truong Thanh Wood's explanation stated.
Currently, the company has been dealing with outstanding tax debts from 2012 to 2022, which had hindered the tax refund process and the enjoyment of other legitimate rights for a long time. To date, the company's VAT refund process has returned to normal, significantly improving cash flow for production and business operations, and reducing inventory.
According to Truong Thanh Wood, production and business activities in the coming period will achieve positive results, gradually reducing and eliminating accumulated losses, and overcoming the causes that led to the stock being placed on the warning list.
Source: https://nld.com.vn/vua-go-mot-thoi-gia-co-phieu-thua-ly-tra-da-truong-thanh-khac-phuc-ra-sao-196240801124459387.htm
