A hapvida (HAPV3) was, by far, the action of the Ibovespa which fell the most in March. In the month, the health insurance staged highly volatile trading sessions, even dropping more than 30% in a single day.
With the closing of this Friday (31), the company’s shares ended March with a fall of 41.65%. There was a large discrepancy in relation to the second stock with the biggest drop on the Ibovespa, which fell “only” 21.20%.
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But what happened to Hapvida to lead this month’s losses ranking?
To understand why investors are abandoning the company’s thesis, it is necessary to remember that the results of the fourth quarter of 2022 were very poorly received by the market.
The trading session following the balance sheet saw the collapse of more than 30% of the operator’s shares, which reversed the profit (disregarding adjustments) and presented a loss of R$ 316.7 million.
What worries investors is Hapvida’s cash burn. They try to understand the company’s ability to unlock cash under regulatory rules, which would solve its current cash flow problem. solvency.
In a report published in the month, the Itaú BBA explains that most of the company’s debt is allocated to the holding company, while the “true” cash generators are the operating subsidiaries.
Regulatory rules applicable to operators (which is where the real money is) prevent distributions to holding companies if the required minimum cash holdings are not met, which serves as a kind of regulatory guarantee. It is due to the excess of cash that the subsidiaries are able to transfer money to their holding company, the most conventional form being the payment of dividends to the controller.
As a rule, operators need a minimum solvency margin (capital) to get through periods of uncertainty. The issue is that Hapvida’s cash deterioration due to the challenging macroeconomic scenario ended up leading to an accelerated deterioration in the company’s capital adequacy.
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