Week 08/05 – 12/05

Company

baf.vn, bsr.vn, dgc.vn, hdb.vn, hpg.vn, nvl.vn, pdr.vn, ree.vn, tcb.vn, vcb.vn, vci.vn, vhc.vn, vib.vn, vgc.vn,

BAF VN: BAF wants to mobilize VND 684 bn from existing shareholders to supplement capital for agricultural business activities and for pig raising.

BAF VN: sets a revenue target of VND7.52 tn (+6% YoY) and PAT target of VND301 bn (+4.6% YoY). Also, BAF plans to offer 68.4 mn shares, at the price of 10,000 VND/share, for all existing shareholders and plans to issue 24.4 mn shares with estimated rate at 17%.

Comment: Urgh….ok I like the company and it’s operations, but hate the cap increase….that’s vietnamese equities for you.

BSR VN: Deputy Prime Minister Tran Hong Ha approved the project of upgrading and expanding Dung Quat oil refinery with a total investment of more than USD1.2 bn. Capital source will include 40% of equity and 60% of loan.

DGC VN: plans to achieve revenue of VND2,172 bn in 2Q2023 and PAT of VND630 bn (-46% and -67% YoY).

HDB VN: announced payment of dividends in 2022 in cash at the rate of 10%. The closing date is expected to be May 30th and expected date of dividend payment is June 12th.

Comment: One of the 4 banks likely to consolidate market share.

HPG VN: Though HPG ramped up production in April, with raw steel output rising 19% MoM to 525,000 tons, its sales dropped further to 457,000 tons, down 8% versus March and 24% against last April

NVL VN: announced that its major shareholder, Novagroup JSC, registered to sell 69.61 mn shares of NVL from May 10th to June 8th. The purpose is to balance the investment portfolio and support the structure of debts and other obligations.

Comment: Translation – the real purpose is that they are cash broke and need to cover loans

PDR VN: has written opinions on increasing charter capital by 30% through the issuance of shares to shareholders and raised the interest rate on the bond lot PDRH2130002 from 13% to 15%.

REE VN: announced the issuance of more than 53.3 mn shares to pay dividends for 2022, the rate is 15%. The last registration date is May 22nd and the ex-rights date is May 19th.

TCB VN: recorded a sudden increase in net profit from other business activities, double YoY, bringing in more than VND 1,057 bn. It came from sales of investment property, bringing in VND 1,775 bn while the cost of this asset was more than VND 1,044 bn.

Comment: Raise capital to cover the NPL increase. I’m a bit worried about the outlook for TCB for the next 2 years, shares are stupidly cheap but growth is a q market given how leveraged it is to the housing market.

VCB VN:VCB is about to pay a dividend of more than 18%, increasing its capital to over VND55 tn.

VCI VN: will pay 2nd dividend in 2022 in cash at the rate of 5%. The ex-rights date is May 15th and payment date is June 6th.

Comment: Still the best broker play in the country, plus if you look under the hood, the investment book is impressive.

VHC VN: plans to issue 3,667,539 shares, equivalent to 2% under ESOP in 2022. The issue price is VND 10,000/share with total par value. reached VND36.67 bn.

Comment: The baby TU of Vietnam. And they’re still consistently growing year in year out.

VIB VN: received an official letter from SBV approving VIB’s increase in charter capital up to VND4,291.3 bn. Accordingly, VIB will issue 412.5 mn bonus shares to existing shareholders and 7.6 mn bonus shares for ESOP, with the issuance rate of 20% and 0.36%, respectively.

VGC VN: sets, in 2023, revenue target of VND15,750 bn (+8% YoY) and PBT target of VND1,210 bn (-48% YoY). Also, VGC plans to pay dividends in cash at the rate of 20%.

Financial Results

acv.vn, bsr.vn, fmc.vn, nab.vn, pow.vn, ssb.vn, vjc.vn,

• ACV VN: recorded, 1Q2023, revenue of VND4,728 bn (+2.2 times YoY) and PAT of VND1,636 bn (+87% YoY).
• BSR VN: recorded, in 1Q2023, a decrease of 2% in revenue, to more than VND34 tn and net profit, a decrease of 30% YoY, to nearly VND1.63 tn.
• FMC VN: recorded, in April, sales of USD14 mn (VND330 bn) (-26% YoY). For 4M2023, revenue is about USD57.2 mn (VND1,351 bn) (-26% YoY).
• NAB VN: announced the financial statement for 1Q 2023 with PBT in 3M 2023 reaching more than VND760 bn, up 18.3% YoY and fulfilling nearly 29% of the year profit plan (VND2.6 tn).
• POW VN: recorded, in 4M2023, revenue estimate of VND10,421 bn (+5% YoY). In April, POW recorded a revenue of VND2,629 bn (-7% YoY).
• SSB VN: PBT in 3M 2023 reached VND 1,070 bn, down 18% YoY and fulfilled 19% of the year plan.
• SSB VN: SeABank has achieved outstanding achievements with a PBT of nearly VND 5,069 bn, completing 104% of the year plan. SSB sets a goal of sustainable growth, increasing charter capital to VND 25,903bn.
• VJC VN: revenue reached VND12.88 tn (approx. USD553 mn) while the PAT was VND168 bn (approx. USD7.2 mn) + 286% and +320% YoY respectively. Ancillary revenue was reported at VND4.31 tn (approx. USD185 mn), accounting for more than 33% of the total revenue.The company’s consolidated revenue and PAT was almost VND12.9 tn (approx. 554 mn USD) and VND173 bn (approx. USD7.4 mn), respectively.

Country

• The capital city of Hanoi attracted over USD1.7 bn of FDI in 4M2023 with 103 new projects worth USD35.2 mn and 50 projects permitted to increase investment capital by USD91.8 mn.
• The country’s total import-export turnover for 4M2023 reached USD179.74 bn (-14.6% YoY). Notably, the import and export turnover of enterprises with foreign direct investment (FDI) only reached USD125.56 bn (-14.2% YoY). Thus, FDI enterprises accounted for more than 67.4% of the decrease in turnover of the whole country.
• A slump in auto sales last quarter pushed Vietnam from fourth to fifth place in Southeast Asia. Vietnam has for years been the fourth largest auto market in the region after Indonesia, Thailand and Malaysia, but suffered a 25% drop in sales in the first three months this year.
• The northern region is facing a high risk of serious electricity shortage this summer due to rising demands and low output of hydropower plants as a result of unfavourable weather conditions.
• Nearly 90% of banks surveyed recorded an increase in bad debt in 1Q 2023, most of which increased by double digits. Bad debt ratio at some banks exceeded 3%.
• Total CASA at 28 banks at the end of March 2023 stood at more than VND 1.5 thousands tn, down nearly 11% compared to the beginning of the year.
• The Government decided to approve the draft Resolution of the National Assembly on reducing value-added tax (VAT) from 10% to 8% as proposed by the Ministry of Finance.
• Banks, including VietBank (VBB) and Viet Capital Bank (BVB), are expected to transfer from UpCOM exchange to the Ho Chi Minh City Stock Exchange (HoSE). The plans were approved at their recent General Meeting of Shareholders.
• China Trust Vietnam Opportunity Fund will continue to raise investment capital in Vietnam by TWD from May 8. This is the fund’s 5th capital raising with a value of about TWD5 bn or USD163 mn (VND3,824 bn). After this capital increase, the fund’s total capital mobilization is about TWD16.5 bn, equivalent to USD 537.9 mn (VND 12,616 bn).
• The corporate bond market has remained lackluster, with nearly VND2.62 tn in corporate bonds issued in April, representing a mere 10% of the total recorded in March, according to the Vietnam Bond Market Association (VBMA).
• The trade turnover between Vietnam and the United States have significantly decreased during the first four months of the year. Specifically, the country’s exports to the demanding market in the reviewed period fell 21% to USD28.45 bn on-year, accounting for 26% of total export turnover while the import turnover of goods from the US also dropped 11.9% to USD4.08 bn.
• Standard Chartered Bank lowered its GDP growth forecast for 2023 for Vietnam to 6.5% from 7.2% previously. External factors are considered more carefully.