Week 29/05 – 02/06

anv.vn, ctg.vn, eib.vn, gmd.vn, kbc.vn, nvl.vn, vcb.vn, vhm.vn, vjc.vn, dig.vn, phr.vn, vnd.vn

Company News

ANV VN: sets, in 2023, revenue target at VND5,200 bn (+6% YoY) and PBT target of VND500 bn (-35% YoY). Also, ANV will pay a cash dividend in 2022 at the rate of 10% and plans to issue shares to existing shareholders to increase share capital from equity, the ratio is 1:1.

Comment: “We are not going to grow, and we are going to dilute your equity” Vietnam…..

CTG VN: will offer a total of VND9,000 bn of bonds with a par value of VND100,000 /bond, divided into two issuances.

Comment: It’s good to see bonds hitting the market again. Proves that things are becoming clearer.

EIB VN: was recorded a net sale of nearly 34.4 mn EIB shares with value of over VND700 bn by foreign investors.

GMD VN: divested all 84.66% of capital in Nam Hai Dinh Vu Port Joint Stock Company with estimated value of VND2,000 bn.

Comment: Finally! GMD is the best pure play on exports from Vietnam

KBC VN: only bought 46% of the total number of bonds offered to buy back before maturity (equivalent to VND343 bn).

KDH VN: announced cooperation agreement with Singapore-based real estate group Keppel in two projects in Thu Duc City with a total estimated value of SGD187 mn.

NVL VN: sets, in 2023, revenue target of VND9,531 bn and PAT target of VND214 bn (-15% and -90% respectively YoY). Also, NVL is not expected to pay dividends for both 2022 and 2023.

Comment: Discount this by another 90%

VCB VN: was approved by SBV to increase its charter capital from VND47,325 bn to VND55,891 bn according to the plan to issue 856 mn shares at rate of 18.1% to pay dividends from the remaining profit in 2019 and 2020.

Comment: Their targeting USD1 bn and are aiming for foreign institutional investors to buy in.

VHM VN: The consortium of VHM, Cam Ranh Investment Joint Stock Company and Vines Energy Solutions Joint Stock Company is the only investor registered to implement the Cam Ranh Bay urban area project with total value of $3.5 bn.

Comment: They’re trying their best to keep the stock up…but everyone in the market knows the vin group link and the fear that they are just throwing money away with the rubbish EV cars that they are building. Plus if there’s 1 more change in the government (PM), this fellow is gone.

VJC VN: approved a plan to privately issue VND2,000 bn of corporate bonds. The par value of the bond is VND100 mn/bond.

Comment: I still think they’re bankrupt, I have no idea how/why people would buy these bonds.

Company Targets

• KBC VN: sets, in 2023, revenue target of VND9,000 bn (9.5 times higher YoY) and PAT target of VND4,000 bn (2.5 times higher YoY). For 1Q2023, KBC recorded revenue of VND2,223 bn (3.2 times YoY) and net profit of VND1,056 bn (2 times higher YoY), completing 26% of profit target.
• DIG VN: sets, in 2023, revenue target of VND4,000 bn (+98% YoY) and PBT target of VND1,400 bn (+604% YoY).
• PHR VN: sets, in 2023, revenue target of VND 1,813 bn and PAT target of VND488 bn (-17% and -36% YoY, respectively). Also, PHR plans to pay dividend in 2023 at the rate of 30% in cash.
• VND VN: sets, in 2023, PBT target of VND2,000 bn (+16% YoY) and PAT target of VND1,600 bn (+17% YoY).

Country

• Fresh foreign direct investment (FDI) approvals in the year to May 20th had hit $10.86 bn (-7.3% YoY). In which, the number of new FDI projects registered in May inched up by 1.2% MoM and soared by 66.4% YoY and $7.55 bn has been disbursed for FDI projects between January and May this year, sliding by 0.8% YoY.
• The overall index of industrial production (IIP) rose 2.2% MoM and 0.1% YoY. In 5M 2023, the overall IIP fell 2.0% YoY due to slowdown in exports.
• Total retail sales of goods & services increased 1.5% MoM and 11.5% YoY in May. In 5M 2023, total retail sales of goods & services increased 12.6% YoY (+8.3% in real term), the highest level in the same periods since 2015 – according to the GSO. Of the total retail sales, retail sales of accommodation & catering services and tourism jumped 22.1% YoY and 89.4% YoY, respectively.
• In May, disbursed FDI improved to USD1.8bn, the highest monthly level YTD. In 5M 2023, disbursed FDI slid 0.8% YoY to USD7.65bn, while registered FDI fell 7.3% YoY US10.9bn.
• Exports and imports improved vs April, but still declined 5.9% YoY and 18.4% YoY, respectively. In 5M 2023, exports and imports fell 11.6% YoY and 17.9% YoY to USD136.2bn and USD126.4bn, respectively, expanding the trade surplus to USD9.8bn (vs USD7.6bn in 4M 2023 & USD240mn in 5M 2022).
• May’s CPI was almost unchanged from April (mainly attributed to a decline of 7.8% in domestic petroleum prices, which curbed headline CPI by 0.28 ppts) and increased 2.4% YoY, narrowing average inflation in 5M 2023 to 3.55% YoY (from 3.8% YoY in 4M 2023).
• FDI surged nearly 28% YoY to USD 5.3 bn in 5M. Share acquisitions among FDI projects rose 67% to USD3.3 bn, according to the Ministry of Planning and Investment.
• Vietnam invested nearly USD316.4 mn abroad in 5M, equivalent to 93.5% of the figure recorded YoY. Of the total, USD142.7 mn was poured into 47 new projects, or 48.6% of the figure YoY in 2022 while USD173.7 mn was added to 16 underway ones, YoY increase of 3.9 times.
• The total export and import turnover of goods in May was estimated at USD55.86 bn (+5% MoM and -12% YoY). In which, exports reached USD29 bn (+4% MoM but -6% YoY); import turnover is estimated at USD26.8 bn (+6% MoM but -18% YoY). The trade balance in May was estimated to have a trade surplus of USD2.24 bn.
• Total state budget revenue in May 2023 is estimated at VND103.4 tn. For 5M20223, total state budget revenue is estimated at VND769.6 bn (-6% YoY). Total state budget expenditure in May 2023 is estimated at VND152 tn; For 5M2023, total state budget expenditure is estimated at VND653.1 tn (+10.9% YoY).
• Vietnam’s import-export value in the first five months of this year was estimated at $262.54 bn, down 14.7% year-on-year, with a trade surplus of $9.8 bn, according to the General Statistics Office.
• Although Vietnam recorded a low GDP growth of 3.32% in 1Q, making the whole-year target of 6.5% a big challenge, there are signs that growth will improve in the following quarters.
• In May, capital investment from the state budget was estimated at VND45.1 tn (+18% YoY), including capital managed by the central government reached VND8.8 tn (+28.4% YoY) and local capital under management is VND36.3 tn (+15.8% YoY). For 5M2023, capital investment from the state budget is estimated at VND177 tn (+18.4% YoY).
• Over 20 banks have cut deposit interest rates, with the highest rate now set at 8.5% per year. The rate cuts followed the recent State Bank of Vietnam’s (SBV) interest rate reductions. Deposit interest rates are down by 0.5 %age point for the tenor of less than six months. Meanwhile, the rates for six months and longer have been reduced by 0.2-0.3% compared to two weeks ago.