Week 13/03 – 17/03

bwe.vn, cii.vn, nvl.vn, phr.vn, qns.vn, ree.vn, stk.vn, vhc.vn, vib.vn, vic.vn, vpb.vn

Company

BWE VN: agreed to invest in and buy shares of Long An Water Supply and Sewerage Joint Stock Company. The number of shares to be purchased corresponds to the ownership rate of 20 – 100% of the voting shares in the company.

CII VN: sets a revenue target in 2023 at VND5,155 bn (-10.4% YoY) and net profit at VND469 bn (-51% YoY).

Comment: Surprised that this company has not been caught in the anti-corruption crackdown

NVL VN: plans to offer more than 2.9 bn shares to raise at least VND29,200 bn.

Comment: They’ll need to raise more than that…

PHR VN: sets, in 2023, revenue plan of VND1,813 bn, PAT target of VND488 bn (-17% and -36% respectively YoY).

QNS VN: In 2023, QNS aims to record VND 8,400 bn in revenue, up 2%, however, PAT decreased by 22% to VND 1,008 bn.

REE VN: sets, in 2023, a revenue target of VND10,962 bn (+17% YoY) and PAT of VND2,700 bn (+0.3% YoY).

STK VN: approved the contribution of VND295.5 bn to add more capital to Unitex Yarn, Textile Dyeing Co., Ltd.

VHC VN: announced its business results in February 2023 with export revenue of VND758 bn (-29% YoY, but +64% MoM).

VIB VN: approved the 2022 dividend payment plan at the rate of 35% including 20% stock dividend and 15% cash dividend. VIB sets, in 2023, a plan with PBT of VND12,200 bn (+15.3% YoY), total credit of VND292,500 bn (+25% YoY) and capital mobilization of VND292,600 bn (+26.2% YoY).

Comment: They have one of the more aggressive loan growth targets in the country.

VIC: VinFast delays the operation of its US EV factory from July 2024 to 2025, citing administrative procedures. VinFast has net debt of USD2.2bn as of end-2022. It recorded operating cash flow of -USD1.2bn in 2021 and -USD1.5bn in 2022.

VIC VN: Mr. Pham Nhat Vuong has announced the expected transfer of ownership of more than 50.7 mn VIC shares (accounting for 1.31% of the group’s charter capital) to contribute capital to Green and Smart Mobility Joint Stock Company.

Comment: His attempts at getting money out of the country are failing, rumours have it that Central Group is going to buy up the retail business, and VIC is selling cash flow generating assets to “fund” the EV project.

VPB VN: The company is nearing a deal to sell a 15% stake to Sumitomo Mitsui Financial Group at a price of VND32,000-33,000/share (75%-80% premium to VPB’s last closing price), per Bloomberg. The deal is expected to be signed later this month.

Comment: Et voila, been waiting 8 months for this.

Country

• Fubon FTSE Vietnam ETF received Central Bank approval to raise another USD160mn. The ETF will begin its new subscription on 15 March. Its AUM reached USD716mn as of 9 March and its top 5 holdings included HPG (11.4%), VIC (11.0%), VNM (10.8%), VHM (9.1%) and MSN (8.8%).
• Suppliers to Dutch chip-making machines giant ASML Holding NV are considering building plants in Southeast Asia instead of China, per Reuters. Officials from a dozen tech companies are set to visit Vietnam, Malaysia and Singapore this week.
• For 2M2023, Korea has invested in Vietnam about $418.83 mn with 26 new projects mainly in processing and manufacturing industry. Korea is at the forefront with a total registered capital of more than $81.3 bn (accounting for 18.4% of total investment capital). Singapore ranked second with nearly $72.1 bn (accounting for 16.3% of total investment capital). Followed by Japan, Taiwan, Hong Kong.
• Credit growth in the first months of this year slowed significantly due to high interest rates and firms’ poor health, raising concerns about rising bad debts. Credit growth by the end of February 2023 increased by nearly 0.8%, equal to only 1/3 YoY.
• Vietnam’s big four state-owned commercial banks lowered their 12-month-term deposit interest rate by 20 basis points to 7.2%, just a day after the central bank decided to lower key interest rates.
• According to data from Fubon, on March 15th, the number of Fubon FTSE Vietnam ETF increased by 21.5 mn units, meaning that the fund bought TWD241 mn ($8 mn) of Vietnamese shares. This is the first disbursement in the 5th additional mobilization with the amount of TWD5 bn ($160 mn).
• By the end of February, the country’s electronics exports had dropped by 13.9% to USD6.87 bn compared to 2022. Machinery and tools exports reported a 1.6% decline to USD6.4 bn , while textile exports dropped by a significant 19.6% to USD4.55 bn. Footwear and furniture exports also suffered losses, declining by 15.8% and 34.8%, respectively, to USD 2.76 bn each.
• In the first two months of this year, the State Treasury raised more than VND 69.42 tn, or 64.28% of the 1Q plan and 17.36% of the yearly plan. Most of them were 10-year and 15-year bonds, accounting for 52.19% and 45.21%, respectively.