Duc Giang Chemicals Stock Unexpectedly Hits Floor Price: Temporary Volatility or Long-term Risk?

The trading session on December 16 witnessed a major shock for DGC shareholders as Duc Giang Chemicals stock suddenly plummeted to the floor price of 86,500 VND/share. While the overall market was bullish with nearly 500 gaining tickers, the sharp decline of this chemical “giant” has raised many questions.

As a dedicated partner in the chemical industry, Sekino provides a detailed analysis of the business situation and the factors impacting this enterprise.

1. Overview of the “Unusual” Trading Session for DGC

According to HoSE data, the liquidity of DGC surged on December 16, reaching nearly 18.6 million shares. This figure is 20.5 times higher than the average trading volume of the past 10 days, with a total transaction value exceeding 1,619 billion VND.

Notably, foreign investors also net sold more than 1.4 million shares (valued at over 122 billion VND). The heavy selling pressure during a “green” market session reflects investor anxiety regarding upcoming changes in export tax policies.

2. Pressure from Yellow Phosphorus (P4) Export Tax – A Challenge for Duc Giang Chemicals

The core reason for market volatility stems from Decree 199/2025/ND-CP. Specifically:

• From Jan 1, 2026: Export tax on phosphorus P4 will increase from 5% to 10%.

• From Jan 1, 2027: The tax will further increase to 15%.

Yellow phosphorus (P4) is a strategic product for Duc Giang Chemicals. While tax hikes will inevitably affect profit margins, Sekino’s experts believe DGC still possesses natural “shields”:

• Competitive Advantage: Vietnam’s tax rates remain significantly lower than China’s.

• FTA Benefits: Export taxes to Japan (a major client) and the EU are expected to drop to 0% in 2026-2027 thanks to signed Free Trade Agreements.

3. Business Reality: Strong Financial Health

Despite stock price fluctuations, Duc Giang Chemicals’ financial report for the first 9 months of the year shows positive growth:

• Net Revenue: Reached 8,521 billion VND (up 14% year-on-year).

• Profit After Tax: Reached 2,532 billion VND (up 9%).

• Cash Reserves: The company holds nearly 12,762 billion VND in bank deposits, ensuring excellent liquidity and reinvestment capacity.

Furthermore, the company has set December 25 as the record date for a 2025 cash dividend advance at a rate of 30% (3,000 VND/share), demonstrating leadership’s confidence in the company’s cash flow.

4. Sekino – Your Comprehensive Chemical Solutions Provider

At Sekino, we closely monitor fluctuations from industry leaders like Duc Giang Chemicals to provide accurate forecasts and supply chain adjustments for our clients.

In a landscape where raw material prices may fluctuate due to tax policies, Sekino commits to:

1. Continuous Market Updates: Helping businesses stay proactive in their procurement planning.

2. Cost-Optimization Solutions: Sourcing alternative materials or optimizing chemical usage processes to mitigate pressure from rising P4 prices.

3. In-depth Technical Support: Ensuring maximum efficiency for clients in the semiconductor and industrial sectors.

Conclusion

The floor-price drop of Duc Giang Chemicals on December 16 is largely a short-term psychological reaction to tax news. With a solid financial foundation and a strategic shift toward high-value markets, DGC remains a leader in Vietnam’s chemical industry.

If your business is concerned about chemical price volatility in the coming period, contact Sekino today for stable and sustainable supply solutions.