Week 15/05 – 20/05

bwe.vn, ctr.vn, dcm.vn, dig.vn, fpt.vn, msn.vn, nvl.vn, sab.vn, vhc.vn, vic.vn

Company

BWE VN: recorded, in April, revenue of VND400 bn and PAT of VND85 bn. For 4M2023, total revenue is VND1,082 bn and PAT is VND226 bn (-10% and -15% respectively YoY), completing 27% of the revenue plan, 31% of the year profit plan.

BWE VN: wants to increase its ownership rate in NQB from 25% to 41% as BWE recently registered to buy nearly 2.8 mn NQB shares from May 18th to June 16th.

Comment: Perhaps the best run utility play in the country (for now….this is VN…)

CTR VN: recorded, in 4M2023, revenue of VND3,276 bn, and PBT of VND187 bn (+21% and +22% respectively YoY), completing 32% of revenue plan and 31% of profit target. In April, CTR’s revenue is estimated at VND937 bn and PBT is VND51 bn.

DCM VN: proposes to pay dividends in 2022 in cash, at the rate of 30%. DCM sets revenue target of VND13,459 bn and PAT target of VND1,383 bn (-15% and -68% respectively YoY). The dividend payout in 2023 is expected to be 16%.

DIG VN: was reported on the violation of the planning on the area of social housing at the North Vung Tau New Urban.

Comment: Another property company with question marks, oh VN….but perhaps one of the few that has a major shareholder with more than 10%…. (by the rest of the region standard’s this is stupidly low…)

DXG VN: proposed to postpone the international bond issuance with total value of USD300 mn. In addition, DXG proposed to raise capital through offering/issuing a total of 168 mn shares to existing shareholders, professional securities investors and ESOP.

FPT VN: approved the payment of dividends in 2022 with a total rate of 25%. Specifically, FPT plans to pay the dividend of 2022 at the rate of 10% in cash, with total value of VND1,100 bn and issues shares to pay dividends in 2022 at the rate of 15%.

FPT VN: recorded, in 4M2023, revenue of VND15,749 bn and PAT of VND2,449 bn (+21.2% and +18% respectively YoY).

Comment: 1) The best consistent performer in the country 2) I bloody hate these share issuances…they’re just creating fake value out of thin air…3) I hope that this company does not suddenly have a scandal…as it’s one of the few clean co’s in the country.

MSN VN: approved the issuance of more than 7 mn ESOP shares, accounting for 0.499% of the outstanding shares.

NVL VN: approved the signing of a loan contract with Long Hung Phat Real Estate Investment Co., Ltd., with value of VND350 bn, period of 36 months, interest rate of 7%/year.

Comment: How are they not yet a bankrupt defunct company?

SAB VN: recorded, in 1Q023, net revenue of VND6,214 bn (-15% YoY) and PAT of VND1,004 bn (-19% YoY), reaching 15% of revenue target and 17% of annual profit target.

Comment: Every company in VN seems to be praying that there is a massive recovery in the 2H23. I’m thinking 1H24.

VHC VN: recorded, in April, sales revenue of USD14 mn (VND330 bn) (-26% YoY). For 4M2023, sales revenue is USD57.2 mn (VND1,351 bn) (-26% YoY).

Comment: Becoming attractive again. A better baby TU version.

VIC VN: approved a resolution on contributing capital to establish a subsidiary, namely NYV Development Joint Stock Company, with the main activity of real estate business. Also, VinFast will list in the US through a merger transaction with a SPAC company, valued at $23 bn.

Comment: This is such an incredibly dodgy transaction…

Country

• Malaysia’s PETMAL Oil Holdings has proposed building a modern oil refinery complex in south-central Phu Yen province with estimated investment of $5 bn.
• U.S. plane maker Boeing inaugurated an office in Hanoi on  May 12, facilitating its cooperation with local partners and support its business strategy in Vietnam.
• According to experts, logistics is the fastest growing and most stable industry in Vietnam, with an average rate of 14 – 16% a year ~ USD40 – 42 bn/year.
• Many banks plan to increase their charter capital in 2023 in order to ensure operational safety and have more resources for business development. Data from SBV showed that by the end of 2022, the charter capital of the whole banking system reached VND876.99 tn, up 13.04% YoY.
• In April, Vietnam’s coffee exports reached 163,607 tons, worth USD398.8 mn (+4.1% in volume and +10% in value YoY). However, in 4M2023, coffee exports reached 716,580 tons, worth USD1.63 bn (-5.5% in volume and -4% in value YoY).
• Deposit interest rates at many major banks in Vietnam have been lowered by 0.1 to 1.1 % points compared to those in early May.
• Many banks have cut deposit interest rates this month, bringing the average rate to below 9. The rate is half a %age point lower than at the start of this year for terms of less than six months, and one point lower for longer tenors. Some banks offered nearly 10% earlier this year.
• In 4M2023, textile apparel exports were hit by an economic slump and high inflation on a global scale, leading to a 19.3 % plunge in value on-year, falling to USD9.57 bn. Export of fabric also took a dive, falling 33.6 % on-year to just USD1.28 bn.
• Only VND147 bn in public investment capital for HCMC civil and industrial construction projects was disbursed between January and April, representing a mere 4% of the full-year target. Around VND70 tn has been allocated to HCMC to fund public investment projects this year.
• FDI businesses posted more than USD14 bn in trade surplus in 4M. However, the FDI sector still recorded a trade surplus of $14.18 bn as a result of $79.1 bn in exports, -12.4%, and USD64.92 bn in imports, -18.3%. Trade turnover totalled USD206.76 bn during January – April, – 15.3% YoY, with those of FDI and domestic businesses at USD144.02 bn and USD62.74 bn, respectively – 15.1% and -15.8%.
• The coupons of G-bonds in all tenors dropped a further 14 to 27 basis points in April compared to the previous G-bond auction held in late March.