Week 26/06 – 30/06

cii.vn, dig.vn, dxg.vn, gex.vn, mwg.vn, kbc.vn, kdc.vn, hbc.vn, nvl.vn, pdr.vn, pnj.vn, pvd.vn, pvs.vn,

Corporate

CII VN: sold nearly 31.8 mn treasury shares at the price of VND17,757 /share with estimated value of nearly VND565 bn.

Comment: Perhaps with this overhang gone could the shares re-rate? It’s perhaps one of the few decent contractors left in the country with a net cash balance sheet and limited competition.

DIG VN: announced unusual information about the establishment of Vung Tau Center Point Company Limited with a charter capital of VND300 bn.

Comment: Gotta love the domestic news, “unusual information”

DXG VN: announced the plan to offer nearly 102 mn shares to existing shareholders and 57 mn individual shares to up to 9 professional securities investors. Also, DXG plans to issue 9 mn ESOP shares. If successful offering, the charter capital will increase to VND7,798 bn.

GEX VN: is negotiating to divest maximum or all shares/contributions in power project companies to foreign investors.

GEX VN: Dragon Capital fund group bought a total of 2 mn GEX shares in June 26th. After the transaction, the funds increased from 41.39 mn shares (4.86%) to 43.39 mn shares (5.09%).

MWG VN: recorded, in 5M2023, net revenue of VND47,144 bn (-21% YoY), fulfilling 35% of the full year plan. In May, MWG’s net revenue was about VND10,297 bn (-10% YoY).

Comment: The question is whether the continued MoM improvement continues for the rest of the year.

KBC VN: estimated, in 6M2023, revenue of VND4,000 bn and PAT of VND2,000 bn, fulfilling more than 50% of the year plan.

Comment: The magical #’s that come out of KBC never cease to amaze me.

KDC VN: plans to increase its ownership rate in Tho Phat Dumplings to 70% in Q32023. Also, KDC has signed with partners and conducted additional acquisitions, but the company’s identity has not been disclosed.

HBC VN: approved the plan to issue 274 mn shares at a minimum price of VND12,000/share in 2023 (equivalent to VND3,288 bn). Also, HBC plans to revalue assets and 3 properties in Ho Chi Minh city. Finally, HBC will restructure short-term loans at banks as banks have agreed to extend HBC’s debt for another 12 months after April 24th.

NVL VN: has extended a bond batch of VND1,000 bn issued in September 2022 for another 21 months. NVL plans to continue its financial restructuring, in which the total remaining volume of bonds that need to be negotiated and extended in 2023 is VND5,500 bn.

NVL VN: announced the resolution on adjusting the maturity of a series of corporate bonds from 36 months to 48 months with total par value of up to VND7,000 bn, issued in the period from June to July 2020.

NVL VN: successfully extended two bond lots (NVLB2123012 and NVLH2123010) with a total issuance value of VND2,300 bn. The payment term will be extended till 2025 and bond interest rates will increase from 10.5% to 11.5%/year.

Comment: Another magic trick going on in the Vietnam equity market.

PDR VN: plans to offer more than 67 mn individual shares in 2023. The total value of VND670 bn is used to pay the principal and interest of the bonds that the company has issued in the two years 2021-2022.

PNJ VN: Sprucegrove Investment Management Ltd (Canada) reported becoming a major shareholder of PNJ from 4.86% to 5.06%.

Comment: PNJ never discloses the true breakdown of their figures, they say because they want to protect themselves versus competitors, I have my doubts….but have been wrong for the past few years on it…

PVD VN: On June 26, Dragon Capital just bought 800,000 shares of PVD to increase its ownership from 10.9% to 11.04% of charter capital. In which, the fund is Hanoi Investments Holdings Limited.

Comment: An O&G offshore service provider play.

PVS VN: estimated, in 6M2023, revenue of VND7,300 bn (-7% YoY) and PBT of VND400 bn (+7% YoY), exceeding 38% of revenue target and 28% of profit target, respectively.

Country

1. Vietnam’s four biggest banks, Vietcombank, VietinBank, BIDV and Agribank, reduced deposit interest rates by 0.5 -1 %age points last week. The highest interest rate at the four state-owned banks is 6.3%, applied for a deposit term of 12 months or more. The rate has decreased by 0.5-0.7 %age points since May.
2. HNX says basic preparations for the separate bond trading system have been completed. The new system for trading corporate bonds is expected to be officially launched at the beginning of July, with more than 16,000 bonds estimated to be traded.
3. National Assembly approved the policy of reducing the value-added tax rate by 2% under the Socio-economic Recovery and Development Program will apply from July 1st to December 31st.
4. Outstanding loans in Vietnam had surpassed VND12.3 quadrillion in the year to mid-June, a 3.36% increase compared to December 2022 and a 8.94% rise YoY.
5. According to the country’s figure until mid-2023, retail sales growth nationwide continued to remain high in May at 11.5 % and sales of goods increased by 10.9 % YoY._
6. Vietnam has cut car registration fees in half for locally-made or assembled cars as authorities hope against hope that the move will boost sales. The 6-month cut takes effect July 1 and the fees will return to normal starting Jan. 1.
7. In 2022, the State Treasury planned to issue VND 400,000 bn in government bonds and later adjusted these to nearly half, bringing them down to VND 215,000 bn. As a result, the total issuance value reached VND 214,722 bn, around 99.9 % after the adjusted plan. In 2023, the Ministry of Finance assigned the task of issuing government bonds to the State Treasury for VND 400,000 bn, equal to that in 2022 and nearly 1.9 times higher than the adjusted plan.
8. Vietnam’s fruit and vegetable exports in May reached $656 mn (+68% MoM and +160% YoY). For 5M2022, Vietnam’s fruit and vegetable exports reached $2 bn (+43% YoY). The result was achieved mainly thanks to the strong increase in demand from the Chinese market, reaching $1 .3 bn (+80% YoY) and accounting for 63.5% of the total export value.
9. Vietnam’s seaports saw an 8% YoY decrease in cargo throughput in 5M this year. Between January and May, a total of 9.71 mn twenty-foot equivalent units (TEUs) of cargo were handled at seaports nationwide. The overall cargo throughput during this period reached 296.1 mn tons, down 3% YoY.
10. For 6M2023, the total export turnover of agricultural, forestry and fishery products were estimated at nearly $24.59 bn (-11% YoY). In which, the export of agricultural products reached nearly $12.8 bn (+12% YoY); livestock products reached $232 mn (+26.5% YoY); seafood reached $4.1 bn (-27% YoY); forest products reached $6.5 bn (-28% YoY).