Vietnam Steel Major SMC Faces Risk of Compulsory Delisting Amid Financial Decline

4 February, 2025 by
Administrator

A recent report by The Investor has brought to light significant financial challenges facing SMC, one of Vietnam Steel’s major players, putting the company at risk of compulsory delisting from the stock exchange.

According to the report, SMC’s market capitalization has fallen by nearly 30% over the past year, dropping to approximately VND 45 billion—well below the minimum listing threshold of VND 75 billion required by regulators. In addition, the company’s average daily trading volume has declined to less than 250,000 shares, falling short of the 500,000 shares benchmark that is essential for maintaining active market participation.

The financial distress is further underscored by a 15% year-over-year decline in revenue, with the most recent quarter reporting revenues of only VND 10 trillion. Compounding these issues, SMC posted a net loss of VND 200 billion in Q4 2024, a stark contrast to a net profit of VND 100 billion in the same quarter of 2023.

These alarming figures have raised significant concerns among both regulators and investors. The combination of reduced market capitalization, lower trading volumes, and deteriorating financial performance could force the stock exchange to initiate compulsory delisting procedures. This potential outcome would have profound implications for investor confidence and could disrupt market stability within Vietnam’s steel sector.

SMC now faces the urgent challenge of reversing these negative trends. Stakeholders are closely monitoring the situation, and efforts to restore financial health and regain compliance with regulatory standards will be critical in the coming months.

Vietnam Steel by Hoa Sen Group

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