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Stocks in the news VN

Week 31/10- 04/11

Company News

vhg.vn , vpg.vn, vnd.vn

VHG VN Trung Nam Construction Investment JSC targeted electricity sales at US$1bn in 2026, up from US$200mn last year, with EBITDA margin at 90%, co. said in a statement released at investor meeting in Ho Chi Minh City on Thursday. Trungnam Group planned to join bidding for a series of onshore and near-shore wind power projects in Central Highlands, Mekong Delta and central-southern regions. Moreover, co. on Tuesday signed a partnership MOU with Siemens Gamesa Renewable Energy SA and had further talks with unnamed credit funds from Denmark and Germany to prepare for the next phase, the statement said without giving details. Co. plans to develop 7 wind projects in next 4 years with capacity totaling over 2.8 gigawatts, Deputy CEO Do Tu Anh told the meeting. Notably, Trungnam Group is the largest renewable energy developer in Vietnam, accounting for 7% of the nation’s current renewable capacity, a representative of VNDirect Securities (VND VN) said during the meeting.

Comment: The renewable space in VN is a massive mess, it is nothing like in Thailand where EGAT/PEA guarantee to buy the electricity generation, the EVN (equivalent of EGAT) do NOT guarantee all of these projects. A play such as a VHG seems to have everything order.

VPB VN: plans to issue 608 mn shares to its existing shareholders.

Comment: Yay more shares….Then again their credit quota for growth will be YUGE next year given they are helping with one of the “bad banks”

VND VN has announced its enrollment in a US$75mn offshore unsecured syndicated loan with the greenshoe option to increase the total limit up to US$200mn from foreign financial institutions. A greenshoe option is a provision in an IPO underwriting agreement that grants the underwriter the right to sell more shares than originally planned. This was the second offshore syndication VNDIRECT raised in 2022 to provide working capital for its legitimate business and operation activities. Maybank Securities Pte Ltd, a member of Maybank Investment Banking Group, and Taipei Fubon Commercial Bank Co Ltd were the co-lead arrangers for the loan (mandated Lead Arrangers and bookrunners – MLABs). The deal attracted eight other foreign banks from Taiwan, Hong Kong, and Singapore. Being 100 percent unsecured, this facility proves the trust of the international capital market toward the business vision and mission of VNDIRECT. The term loan facility was short-term, under 12 months, with the interest rate on a Cumulative Compounded SOFR basis following the current international capital market standard.

Comment: So are they also facing a liquidity crisis?

Country News

  1. Vietnam received $17.45 bn in FDI in 10M22 (+15% YoY). The country could receive up to $22 bn in 2022 (+11.5% YoY). FDI pledges, which indicate the size of future FDI disbursements, including newly registered capital, further investment in existing projects and stake acquisition (-5.4% YoY) to $22.4 bn and 57.5% of the pledges would go to manufacturing and processing.
  2. Vietnam’s rice exports in 10M22 are estimated to have risen about 17.2% from a year earlier to 6.07mn tons. Revenue from rice exports in 10M22 is seen up 7.4% to $2.7 bn.
  3. For 10M22, over VND297 tn of public investment can be disbursed, representing only 46.44% of the full-year target and 55% of the target set by the Prime Minister.
  4. CPI in October 2022 increased by 0.15% MoM and increased by 4.3% YoY. For 10M22, CPI increased by 2.89% YoY. There were 9 groups of goods and services with an increase in price index and 2 groups of goods with a decrease in price index.
  5. For 10M22, the trade balance of goods is estimated to have a trade surplus of $9.4 bn. In which, the domestic economic sector has a trade deficit of $24.9 bn; FDI sector (including crude oil) had a trade surplus of $34.3 bn.
  6. Outstanding loans, in August 31, for the real estate sector totaled VND777,235 bn, a fall of VND7,340 bn compared to the value reported on June 30. Urban and residential construction projects accounted for 23.9% of the total outstanding loans, while credits for house building and repair for lease and sale made up 18.5% of the total.
  7. S&P Global releases Vietnam’s October manufacturing purchasing managers’ index. Index falls to 50.6 from 52.5 in Sept (Year ago 52.1).* This is the lowest reading since Sept 2021.
  8. The Danish toy production company LEGO Group on Thursday officially started construction of its US$1bn manufacturing plant in the southern province of Binh Duong. Covering an area of 44ha at the Viet Nam–Singapore Industrial Park Joint Stock Company (VSIP) III, the plant is the largest foreign-invested project in the province. According to LEGO, the factory will be its sixth manufacturing site in the world and the second in Asia.The plant is expected to become operational by 2024, creating 4,000 jobs for local people within the next 15 years. It would also contribute to increasing export turnover and socio-economic development of the province.
  9. IPP Air Cargo, in an unanticipated move, has withdrawn its application for a cargo flight permit, citing “worsening economic conditions”, “looming global recession” and “volatile fuel prices”, all of which likely will result in numerous challenges for global freighters. Earlier in January, IPP Air Cargo filed for a cargo flight permit with a project to invest VND2.4trl (US$96.5mn) with 30% of the initial investment from the company. The company said it had plans to operate 5 cargo planes during the project’s first year, 7 in the second and 10 in its third. The company’s business plan said the company could haul up to 115,000 tonnes of goods during the first year with an estimated revenue of US$71mn. The company expected a profit return starting from its fourth year.
  10. The Ministry of Industry and Trade has requested state-run gasoline and oil wholesalers to sell their commercial reserves to mitigate fuel shortages in some localities.
  11. Vietnam’s central bank governor has said real estate loans are being restricted to protect commercial banks and control inflation.

Company Results

  1. MWG VN: recorded, in 9M22, profit of VND3.48 tn ($140.14 mn, +4% YoY), with revenues surging more than 18% to VND102 tn.
  2. HPG VN: made, in Q3, a loss of VND1.79 tn ($73 mn). HPG reported revenues of VND34.44 tn (-12% YoY and -8% QoQ).
  3. VIC VN: recorded, in 9M22, net revenue converted of VND88,191 bn (-4.7% YoY) and PAT of VND1,571 bn.
  4. CTD VN: recorded, in Q3, net revenue of VND3,113 bn (+190% YoY) and gross profit margin of 1% (-0.5% YoY). For 9M22, CTD reached net revenue of VND8,307 bn (+34% YoY) and PAT of VND1.9 bn (-97% YoY).
  5. HVN VN: recorded, in Q3, lost VND2.6 tn. For 9M22, HVN recorded net revenue of VND51 tn (+173% YoY). Loss after tax is nearly VND7.8 tn.
  6. ACV VN For 3Q22, ACV gained net revenue of VND4.2trl (vs. only VND370.5bn in 3Q21’s) and PAT significantly escalated to VND2.4trl (vs net loss of VND702.7bn in 3Q21). For 9M22, ACV reached net revenue of VND9.7trl (+156% YoY, completing 94% of FY plan), PBT of VND7.25trl (vs. only VND610.5bn in 3Q21, exceeding FY target by 183%) and PAT of VND5.8trl (vs. only VND497bn in 3Q21).
  7. VCB VN  3Q PAT still increased by 32% YoY to VND6.07trl. For 9M, VCB reached VND38.4trl in net interest income (+21.6% YoY), PBT of VND24.9trl (+29.2% YoY, achieving 81% of FY plan), and PAT of VND19.98trl (+29.1% YoY).
  8. BID VN 3Q PAT extended by 152% YoY to VND5.35trl. For 9M, BID posted upbeat performance with net interest income of VND41.5trl (+15.5% YoY), PBT of VND17.7trl (+64.7% YoY, completing 86% FY plan), and PAT of VND14.2trl (+65.3% YoY).
  9. CTG VN For 3Q, PAT strengthened by 34.6% YoY to VND3.3trl. For 9M, CTG reported net interest income of VND35.08trl (+11.8% YoY), PBT of VND15.8trl (+13.3% YoY, fulfilling 81% of FY target), and PAT of VND12.7trl (+13% YoY).
  10. MBB VN 3Q PAT surged by 61.3% YoY to VND5.03trl. For 9M22, the bank achieved net revenue of VND26.4trl (+38.7% YoY), PBT of VND18.2trl (+53.1% YoY, completing 96% of FY plan) and PAT of VND14.6trl (+52.9% YoY).
  11. GVR VN For 3Q22, GVR posted net revenue of VND5.8trl (-4.9% YoY) and PAT slumped by 35.2% YoY to VND993.9bn. For 9M22, GVR recorded VND16.3trl in net revenue (-2.3% YoY, completing 55% of FY target) and VND3.5trl in PAT (-8.6% YoY, fulfilling 65% of FY plan).
  12. DXG VN For 3Q22, DXG recognized VND1.26trl in net revenue (-3.7% YoY) and PAT improved to VND258.6bn (+61.4% YoY). For 9M22, DXG generated net revenue of VND4.6trl (-41.2% YoY, completing 42% of FY target) and PAT of VND929bn (-31.2% YoY, fulfilling 66% of FY plan).
  13. KDH VN For 3Q22, KDH generated net revenue of VND802.7bn (-33.1% YoY) and PAT slightly increased to VND344.8bn (+8.9% YoY). For 9M22, KDH recorded VND1.7trl in net revenue (-46.7% YoY, completing 42% of FY plan) and VND970.6bn in PAT (+22.9% YoY, fulfilling 69% of FY target).
  14. HDG VN For 3Q22, HDG recorded VND837.5bn in net revenue (+32.3% YoY) and PAT strengthened by 25.1% YoY to VND310.1bn. For 9M, HDG achieved net revenue of VND2.5trl (+1.6% YoY, fulfilling 67% FY target) and PAT of VND1trl (+42.7% YoY, fulfilling 77% FY target).
  15. GAS VN For 3Q, GAS reported VND24.3trl in net revenue (+31.2% YoY) and PAT soared up to VND3.1trl (+25.4% YoY). For 9M, GAS impressively recognized net revenue of VND78.7trl (+33.8% YoY, achieving 98% FY goal) and PAT of VND11.7trl (+72% YoY, exceeding FY plan by 67%).
  16. PVD VN made a loss in 3Q22 with PATMI of -VND34b vs. 3Q22 of VND67b. The company may fail to meet our full year forecast of VND105b, which was based on expectation of 30% increase in jack-up day rates in 2H22 compared to 1H. While the weak earnings in 3Q22 implied a slower pickup in day rates and/or rig utilization, it still revealed important improvements in the company operating: (1) Large improvement in rigs operating day, which was a result of the deep water TAD rig returning to probably full scale operating and increase in jack-up rigs workload. This is proven by depreciation expense, a proxy for rig operating day, jumping by more than 4x compared to the past 2 years’ quarterly average, and (2) Higher jack-up day rates kicked in. As a result, operating cash flow shows significant improvement in 3Q, which is crucial for an early-phase turnaround drilling company. Raising interest rate did eat up part of earnings, however it is outweighed by the increase in EBITDA. Interest coverage stands at healthy 12x in 3Q.
  17. BCM VN For 3Q, BCM generated VND2.3trl in net revenue (+197% YoY) and PAT significantly escalated to VND259.2bn (+415% YoY). For 9M22, BCM noticeably achieved VND5.6trl in net revenue (+46.1% YoY, completing 58% FY plan) and VND1.7trl in PAT (+60.4% YoY, fulfilling 58% FY target).
  18. KBC VN For 3Q22, KBC reported net revenue of VND203.2bn (-37.4% YoY) but posted an upbeat performance with PAT of VND1.9trl (vs net loss of VND59.3bn in 3Q21) thanks to income from JV and affiliates of VND2trl. For 9M, while net revenue significantly sank to VND1.3trl (-58.1% YoY, fulfilling 13% FY target), PAT remarkably escalated to VND2.1trl (+191.4% YoY, fulfilling 47% FY target).
  19. HVN VN For 3Q22, HVN presented net revenue of VND21.16trl (+347% YoY) and reported net loss of VND2.5trl (vs net loss of VND3.5trl in 3Q21). For 9M22, HVN reported net revenue of VND51.1trl (+173% YoY, exceeding FY target by 13%) and net loss of VND7.8trl (vs. net loss of VND12.2trl in 9M21).
  20. VJC VN For 3Q22, VJC reached net revenue of VND11.6trl (+337% YoY) but PAT deteriorated to VND42.5bn (-40.7% YoY). For 9M22, VJC posted net revenue of VND27.5trl (+170% YoY, completing 84% of FY target) and PAT of VND187.5bn (-3.2% YoY, fulfilling 19% of FY plan).
  21. HDG VN For 3Q22, HDG recorded VND837.5bn in net revenue (+32.3% YoY) and PAT strengthened by 25.1% YoY to VND310.1bn. For 9M, HDG achieved net revenue of VND2.5trl (+1.6% YoY, fulfilling 67% FY target) and PAT of VND1trl (+42.7% YoY, fulfilling 77% FY target).
  22. BAF VN: recorded, in Q3, profit of VND182 bn (3.5 times higher YoY). For 9M22, revenue from livestock has doubled, completing 83% of the year plan.
  23. STB VN: reported, in Q3, PBT of VND1,532 bn (+86% YoY). For 9M22, STB reached net profit of VND9,990 bn. However, the Bank made provision for credit risks 2.3 times higher YoY (VND5,550 bn), thus PBT of VND4,440 bn (+37% YoY).
  24. DGW VN: recorded, in Q3, net revenue of VND 6 tn (+59% YoY). This strong growth momentum mainly comes from laptops, mobile phones and office equipment.
  25. VJC VN: recorded, in Q3, revenue of VND10,256 bn (individual) and VND11,600 bn (consolidated) (+652% and +337%, respectively YoY). For 9M22, VJC has completed 85% of the revenue plan.
  26. VEA VN VEA announced 9M22 result with total revenue reaching VND 3.5t (+23% YoY) and NPAT of VND 5.1t (+31% YoY) – still driven mainly by (1) impressive JVs profit of VND 4.6t (+33% YoY), (2) higher financial income of VND 587b (+6.7% YoY) and (3) improving core operating business with an estimated profit of VND 66b (+570% YoY) even though this still account for negligible earning contribution. This again convinces our view for VEA, and we should expect a higher dividend yield next year. This year’s div yield was 10%, while earning growth for this year is around 10%. So a conservative estimate should be at least 11% next year. We derive a fair value VND61,000/share for VEA, based on a DCF model. As a result, we believe VEA can provide investors with a sustainable ROE of 25% and a decent dividend yield of at least 10% annually. The stock is now trading at P/E of 8.1x (FY22E) and 7.8x (FY23E), below its average P/E of 10.4x.
  27. PLX VN For 3Q22, PLX achieved net revenue of VND73.7trl (+112.8% YoY) and PAT notably escalated to VND189.1bn (+137.8% YoY). For 9M22, PLX recognized VND225.7trl in net revenue (+88.5% YoY, surpassing 21% of FY plan), VND614bn in PBT (-79.2% YoY, completing 20% of FY target) and VND498.3bn in PAT (-79.3% YoY).
  28. FRT VN For 3Q, FRT impressively disclosed net revenue of VND7.7trl (+54.4% YoY) and PAT escalated by 80.5% YoY to VND85.3bn. For 9M, FRT posted upbeat performance with net revenue of VND21.7trl (+54.9% YoY, fulfilling 80.4% FY target) and PAT of VND301.4bn (+178% YoY, fulfilling 52.3% FY target).
  29. REE VN For 3Q22, REE gained VND2.2trl in net revenue (+104% YoY) and PAT strongly expanded to VND834.4bn (+209% YoY). For 9M22, REE achieved net revenue of VND6.3trl (+61.1% YoY, completing 68% of FY target) and PAT of VND2.5trl (+110% YoY, exceeding FY plan by 23%).
  30. GEX VN  For 3Q22, GEX earned VND7trl in net revenue (+16.1% YoY) and PAT sank by 35.8% YoY to VND220.8bn. For 9M22, co. remarkably achieved VND24.7trl in net revenue (+29.1% YoY and completing 69% FY plan), VND1.8trl in PBT (+24.95% YoY  & fulfilling 67% FY target) and VND1.3trl in PAT (+12.3% YoY).
  31. SSI VN 3Q consolidated PAT deteriorated to VND336.3bn (-50.7% YoY). For 9M, SSI recorded VND5trl in operating revenue (-0.7% YoY, achieving 48% FY goal), VND1.8trl in PBT (-13.8% YoY, fulfilling 42% FY target) and VND1.46trl in PAT (-13.7% YoY).
  32. BVH VN For 3Q22, BVH reported net revenue from insurance business of VND10.05trl (+11.8% YoY) while PAT decreased to VND408.4bn (-13.8% YoY). For 9M22, BVH posted VND30.1trl in net revenue from insurance business (+10.5% YoY) and VND1.25trl in PAT (-13% YoY).
  33. VCG VN For 3Q, VCG published its net revenue of VND3.2trl (+150% YoY) and PAT strengthened by 129% YoY to VND249.4bn. For 9M, co. posted net revenue of VND6.7trl (+85.6% YoY, fulfilling 44% FY target) and PAT of VND969bn (+171% YoY, fulfilling 69% FY target).
  34. PVS VN For 3Q, PVS recorded VND3.5trl in net revenue (-12% YoY) and PAT shrink to VND193bn (-19.7% YoY). For 9M, PVS generated net revenue of VND11.08trl (+14.8% YoY, exceeding FY target by 11%) and PAT of VND453.6bn (-21.2% YoY, fulfilling 93% FY target).
  35. PVT VN For 3Q, PVT reported net revenue of VND2.3trl (+38.7% YoY) and PAT significantly surged to VND386bn (+152% YoY). For 9M, PVT achieved net revenue of VND6.6trl (+25% YoY, surpassing FY plan by 2%) and PAT of VND831.5bn (+37.9% YoY, surpassing FY plan by 73%).
  36. HAH VN For 3Q, HAH reported net revenue of VND778.6bn (+63.7% YoY) and PAT strengthened by 172% YoY to VND274.4bn. For 9M, HAH posted upbeat performance with net revenue of VND2.4trl (+83.8% YoY, fulfilling 99% of FY target) and PAT of VND861.5bn (+203.4% YoY, exceeding FY target by 57%).
  37. DXS VN For 3Q, DXS earned VND1.05trl in net revenue (+17.8% YoY) but PAT dropped by 18.1% YoY to VND197bn. For 9M, net revenue increased by 6.3% YoY to VND3.2trl (achieving 38% FY target) whereas PAT deteriorated to VND671.7bn (-24.9% YoY, fulfilling 54% FY plan).
  38. SHB VN 3Q PAT jumped by 73.3% YoY to VND2.6trl. For 9M, the bank posted net interest income of VND13.2trl (+21.9% YoY), PBT of VND4.4trl (+36.7% YoY, completing 77% FY plan), and PAT of VND7.2trl (+78.8% YoY).
  39. HBC VN HBC disclosed its impressive 3Q earnings of VND3.8trl (+80.6% YoY) in net revenue and PAT recorded at VND5.5bn (+4.8% YoY). For 9M, HBC generated net revenue of VND10.9trl (+44.7% YoY, fulfilling 62.3% FY target) and PAT of VND61.25bn (-16.5% YoY, fulfilling 17.5% FY target).

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