Shares of the paper company soared 129% in 2 weeks

The stock price of Viet Tri Paper Joint Stock Company (UPCoM: GVT) has just risen to the ceiling in the session on February 24 despite concerns about the outbreak of the coronavirus, which pulled the VN-Index down nearly 30 points.

After a long period of "silence" and no liquidity, the stock price of GVT Paper Company began to rise for the first time on February 13 with a trading volume of 200 shares. And from that time until now, GVT shares have risen to the ceiling for 6 sessions (including the session of 24/02) with an increase of nearly 129% in the past 2 weeks. Since its listing until now, this stock has increased by 371.48%.

Formerly known as Viet Tri Paper Factory, Viet Tri Paper Joint Stock Company was first listed on UPCoM in early 2017 with a charter capital of VND 73.45 billion. Currently, the company is trading pulp and paper products, trading and processing forest products, importing and exporting pulp, paper, supplies and chemicals, equipment for the paper industry, box production, etc product packaging and transportation business.

In 2018, Viet Tri Paper Joint Stock Company recorded net revenue of VND 1,225 billion, up 6% over the same period in 2017, but profit after tax increased by 130% to VND 37.6 billion. This shows that the business has a large profit thanks to cost cuts. Generally, for the whole year of 2018, the Company exceeded the revenue plan by about 23%, while the profit before tax was nearly 3 times higher than the plan.

Is the stock price rising thanks to the increased demand for paper during the coronavirus?

In the midst of the raging coronavirus epidemic, the demand for toilet paper to prevent infection has increased sharply and is the reason why the stock price of this paper production company has climbed sharply.

During the coronavirus era, toilet paper is sometimes a more expensive gift than Montblanc pens and leather notebooks.

In Singapore and Hong Kong (China), pharmacies and supermarkets in Hong Kong and Singapore are running out of basic supplies such as toilet paper, tissues, hand sanitizer and masks, as fears of the novel coronavirus (Covid-19) spread across the region.

Mr. Joel Werner (American) runs the hedge fund Solitude Capital Management in Hong Kong. On Feb. 10, he bought 216 rolls of toilet paper on Amazon.com after his family couldn't find a toilet paper store in Hong Kong after days of searching.

The shipping fee alone cost $200, but he thought it was worth it. He keeps half of the toilet paper and plans to give the other half to friends and colleagues. "Now toilet paper is a gift that is more valuable than wine," he said.

According to the investment bridge