Week 13/02 – 17/02

bcg.vn, bwe.vn, dgw.vn, kdc.vn, hax.vn, hvn.vn, msn.vn, nvl.vn, pc1.vn, pow.vn, stb.vn, vhc.vn,

Company

BCG VN: adjusted the plan to use VND2,667 bn in which BCG will cut off all the additional capital poured into AAA Insurance and use the money to lend to real estate companies.

Comment: Capital allocation in VN leaves a lot to be desired at times…

BWE VN: announced the decision to invest in 5 companies operating in the water industry, raising the ownership rate to about 50-100% of the shares.

Comment: A dark house there. One of the few compounders.

DGW VN: approved the business plan for 2023 with VND25,109 bn in revenue, and PAT of VND787 bn. In 2022, the company’s net revenue reached VND22,059 bn, PAT was about VND684 bn (+5% YoY).

Comment: A comp can be made to JMART/COM7/SYNEX in TH. One of the few real entrepreneurial driven companies where the founder is still a majority shareholder.

KDC VN: announced to close the list of shareholders to receive a special dividend of 50% in cash. The ex-dividend date is March 19, 2023 and KDC shareholders will receive dividends on April 6, 2023.

HAX VN: completed the conversion of 1.8 mn bonds code HAXH2223001 into 15 mn shares, the ratio 12:100, increasing charter capital by VND150 bn from VND569 bn to VND719 bn.

HVN VN: will cooperate with MobiFone to build its digital infrastructure such as cloud computing system, domestic and international connection infrastructure, telecommunications network for private and public application of 4G and 5G technology.

MSN VN: wants to invest $105 mn for 25% ownership rate (equivalent to 9.38 mn shares) at Trust IQ Pte. Ltd. (TS Company) which has its head office in Singapore.

NVL VN: PSI requested NVL to fix the non-payment of VND1,000 bn of bonds.

Comment: This real estate mess is going to take another few years to play out.

PC1 VN: approved the plan to issue 12,000 private bonds, with a total mobilized value of VND1,200 bn.

Comment: Good for the corporate bond market to have some form of normalcy return with issues like this.

POW VN: estimated, in January, revenue of VND1,712 bn (21% YoY).

STB VN: sent a document to the SCC, VSD and HOSE on the issue of ownership ratio for foreign investors for STB shares. Specifically, STB has not been any document requesting VSD to increase foreign room from 26.63% to 30%. Meanwhile, the rate of foreign ownership in STB has reached approximately 30%.

Comment: Welcome to emerging (or is it frontier?) markets. This popular bank stock made a mistake about how much foreign investors could own in the company! I mean…ffs…its hilarious!

VHC VN: announced its business results in January 2023 with export revenue down 45% YoY to VND462 bn, the three consecutive years of negative revenue growth.

Financial Reporting

HBC VN: recorded, in 4Q2022, net revenue of VND3,218 bn (-16% YoY) and net loss of VND1,202 bn which caused, for 2022, net loss of VND1,138 bn, but net revenue reached VND14,123 bn (+24% YoY), completing 81% of the year plan.

REE VN: recorded, in 2022, net revenue of VND9,372 bn and PAT of VND3,513 bn (+61% and +65% respectively YoY).

Country

• Vietnam imported over 14,450 completely-built-up (CBU) cars worth $314.5 mn in January, skyrocketing 219% in volume and 149% in value YoY.
• In January 2023, coffee exports were estimated at 160,000 tons, valued at $352 mn (-30.9% in volume and -29.8% in value YoY). In early 2023, the domestic coffee price fluctuated and increased along with the trend of the world coffee market.
• The government has set an economic growth target of 9% a year from now until 2030 for the Red River Delta, which includes Hanoi.
• The State Bank of Viet Nam (SBV) is collecting comments on its draft circular to minimize potential risks for non-banking credit institutions and ensure they work in accordance with international standards.
• Thanks to the VND700 tn (US$29.7 bn) public investment disbursement plan in 2023, demand for construction rock for big public investment projects is expected to boost profits for the industry’s enterprises.
• Many bond issuing companies are having difficulty settling debt as poor business conditions, tough access to credit and difficulties in raising funds from the stock market have heavily affected their cash flows.
• Vietnam’s export turnover to China reached $3.87 bn in January 2023. The largest group of exports is phones and components with a turnover of $1.7 bn. Vietnam’s goods imports from China reached $7.23 bn. China is the only bilateral trade partner of Vietnam with a turnover of more than $10 bn in the first month of 2023.
• Vietnam Electricity (EVN) is facing unprecedented challenges due to surging input costs. The national utility estimates that its combined loss for 2022 and 2023 could exceed VND93 tn ($3.94 bn).
• Vietnam is one of the three largest rice producing and exporting countries in the world. Each year, the country produces 22-23 mn tons of rice. About 15% of Vietnam’s rice production is exported.
• Japan is Vietnam’s largest seafood export market in January 2023 with a turnover of $91 mn (-29% MoM and -31% YoY). The proportion of exports to the Japanese market increased from 17.6% of the total seafood export value of the country in January 2022 to 19.9% in January 2023