HOSE Revises DGC Trading Restriction: Full-Day but Periodic Odd-Lot Matching

Overview

HOSE revised its earlier decision on DGC shares, allowing full-day trading but only via periodic odd-lot matching, after the company delayed its 2025 audited financial report by over 45 days. DGC’s Q1 2026 net profit fell nearly 50% due to surging input costs, including a tripling of sulfur prices. The stock trades near a 3-year low at VND 48,800, down 30% year-to-date.

Key Facts

• HOSE revised Decision 445/QD-SGDHCM, changing DGC’s trading restriction from afternoon-only to full-day but limited to periodic odd-lot matching, effective May 26, 2026.
• DGC was moved from “controlled” to “restricted trading” status due to filing its 2025 audited financial report more than 45 days late.
• At an extraordinary shareholder meeting on May 8, 2026, DGC removed three board members (including Chairman Dao Huu Huyen) who are under criminal investigation, and elected three new members.
• DGC’s Q1 2026 revenue was VND 2,100 billion, down 24% year-on-year; net profit was VND 409 billion, down nearly 50%.
• Input costs surged: sulfur prices tripled, while electricity, coke, and ammonia prices also rose.
• DGC stock closed at VND 48,800 on May 20, 2026, down 2.20% with volume of 5.14 million shares, near a 3-year low and down 30% year-to-date. Market capitalization is approximately VND 18,500 billion.

What Happened

On May 19, 2026, HOSE issued Decision 445/QD-SGDHCM initially restricting DGC shares to afternoon-only trading. However, HOSE subsequently revised the decision, allowing full-day trading but only via periodic odd-lot matching (khop lenh lo chan dinh ky). The restriction stems from DGC’s failure to submit its 2025 audited financial report within 45 days of the deadline.

At an extraordinary general meeting on May 8, 2026, DGC shareholders voted to remove Chairman Dao Huu Huyen, Vice Chairman Dao Huu Duy Anh, and board member Pham Van Hung, all of whom are under criminal investigation. Three new board members were elected: Dao Huu Kha, Nguyen Quoc Trung, and Pham Duy Tung. Management stated they are working with auditors but cannot confirm when the audited report will be completed to lift the restricted status.

Market Context

DGC shares on HOSE have fallen 30% since the start of 2026, closing at VND 48,800 on May 20, near a three-year low. The stock’s decline reflects both the regulatory overhang and deteriorating fundamentals. The broader chemicals sector has been under pressure from rising global commodity prices, but DGC’s specific governance issues and delayed financial reporting have amplified the selloff. The restricted trading status limits liquidity, as only periodic odd-lot matching is permitted, which may deter institutional participation.

Strategic Significance

DGC’s current situation highlights the intersection of corporate governance risk and operational headwinds. The removal of board members under investigation signals an attempt to reset governance, but the delayed audited report erodes investor confidence. The sharp profit decline due to input cost inflation underscores DGC’s exposure to commodity price cycles, particularly sulfur, a key raw material for its phosphate fertilizer production. Long-term investors will need to assess whether the new board can restore timely financial reporting and navigate cost pressures, especially as the company’s competitive position in the domestic fertilizer market depends on stable production costs.

What to Watch

• Completion and filing of the 2025 audited financial report, which is necessary to lift the restricted trading status.
• Q2 2026 earnings release to see if input cost pressures persist and whether management’s guidance changes.
• Updates on the criminal investigations involving former board members and any potential impact on operations.
• Any further HOSE decisions on trading restrictions or potential delisting if the delay extends beyond 12 months.
• Changes in sulfur and other input commodity prices, as they directly affect DGC’s margin recovery.