Week 10/07 – 14/07

Company

cii.vn, hbc.vn, hhv.vn, hvn.vn, pow.vn, vcb.vn, vhm.vn,

CII VN: had a total of 2 early in June redemptions of bonds with a total value of VND640 bn for the CIIBOND2020-04 bond lot.

Comment: They could really be a strong position going forward…

HBC VN: plans to issue another 274 mn shares, equivalent to VND3,288 bn, of which, issuing shares to subcontractors and suppliers are VND1,050 bn..

Comment: Well that’s one way to wipe out the debt…and how are the suppliers and subcontractors supposed to pay their own outstanding debt? Watch them dump the shares…

HHV VN: and other 5 contractors won the bid for the route connecting Long Thanh airport with total value more than VND2,600 bn.

Comment: Never heard of this company. But it’s not the airport expansion announcement that we’ve all been hoping for.

HVN VN: announced the selection of an auction organization to sell 3 A321CEO aircraft manufactured in 2007 at the starting price of $5 mn/each (equivalent to VND118.7 bn).

Comment: Well a brand new A321 is apparently USD 100 mn, I wouldn’t be surprised to see this easily sold at USD 5 mn given the value of the engines…

POW VN: is recording EVN’s accumulated debt of nearly VND13,000 bn, making it difficult for the company to balance cash flow. Also, EVN owes nearly VND4,900 bn to Nhon Trach 1 and 2 power plants.

VCB VN: announced that the last registration date to receive stock dividends at the rate of 18.1% from the remaining profit in 2019, 2020 is July 26th.

Comment: Yayyy more stock dividends….but this is what will lead to more magical debt to lend out for VCB.

VHM VN: wants to do a social housing project of more than VND6,000 bn in Dinh Vu – Cat Hai economic zone, Hai Phong province.

VHM VN: was approved by Hai Phong City People’s Committee as the investor of the New Urban Area Project in the area of Duong Kinh and Kien Thuy districts with total investment value of more than VND23,000 bn.

Comment: Social housing projects, in a communist/socialist/Leninist regime, are you really expecting a decent profit from this company?

Financial Results

bvh.vn, bwe.vn, ctr.vn, fpt.vn, gas.vn, phr.vn, pow.vn, vnm.vn,

BVH VN: recorded, in 6M2023, PBT of VND866 bn (+4.6% YoY), reaching 52.5% of the whole year business plan.

BWE VN: recorded, in 6M2023, total revenue of VND1,736 bn and PAT of VND332 bn (-7% and -4% respectively YoY, completing 44% of the revenue plan and 46% of the profit target. In 2Q2023, BWE estimated revenue of VND1,055 bn (+25% YoY) and PAT of VND191 bn (-9% YoY). In June, BWE recorded revenue of VND355 bn and PAT of VND39 bn.

CTR VN: recorded, in 6M2023, revenue of VND5,063 bn and PBT of VND288.8 bn (+20% YoY).

FPT VN: recorded, in 6M2023, revenue of VND24,166 bn and PBT of VND4,339 bn (+22% and +19% respectively YoY). For 2Q2023, FPT recorded revenue of VND12,485 bn  and PBT VND1,509 bn (+24% and +21% respectively, completing 46% of revenue target and 48% of profit target.

GAS VN: estimated, in 2Q2023, revenue of VND23,903 bn and PAT of VND2,618 bn (-14% and -49% respectively YoY). For 6M2023, GAS recorded revenue of VND45,117 bn and PAT of VND6,035 bn (-17% and -30% respectively YoY), completing 59% of the revenue target and 92% of the profit target.

PHR VN: recorded, in 2Q2023, revenue of VND168.7 bn (-29.3% YoY) and PAT of VND83 bn (9.4 times higher YoY). For 6M2023, PHR’s net revenue reached VND371 bn (-31.5% YoY) and PAT reached VND255 bn (+2.4% YoY).

POW VN: estimated, in 6M2023, revenue of VND16,567 bn (+14% YoY). For 2Q2023, POW recorded revenue of VND9,143 bn (+23% YoY), completing 55% of the year plan.

VNM VN: recorded, in 2Q2023, total revenue of VND15,200 bn (+1.6% YoY) and PAT of VND2,220 bn (+5.6% YoY). For 6M2023, VNM estimated revenue of VND29,118 bn (+1.1% YoY) and PAT of VND4,126 bn (-5.9% YoY), completing 46% of revenue target and 48% of profit target.

Country

• A recent update on Vietnam’s macroeconomic situation by Standard Chartered Bank suggests that the country’s economic growth in the second half of 2023 is expected to reach 7% yoy, indicating signs of recovery.
• In the first six months of this year, Vietnam exported 4.27 mn tonnes of rice for 2.3 bn USD, up 22.2% in volume and 34.7% in value over the same period last year. Those are the highest growth rates of the rice sector in the recent 10 years.
• In 6M2023, the growth rate of the construction industry increased by 4.74% YoY, higher than the overall GDP growth rate. However, the growth rate of real estate business decreased by 0.82% YoY.
• The number of newly opened securities trading accounts in the country increased by 145,864 accounts in June (+45,000 accounts or +40% MoM) which is the highest within 10 months (since September 2022).
• Foreign businesses continue to place their trust in Vietnam by injecting more than US$13 bn into registered projects throughout the country during 1H2023. Many tech giants and multinational companies such as Samsung, LG, Google, and Microsoft have developed plans to shift their investment in new production lines in Vietnam.
• The State budget revenue in the first half of this year has reached VND875.8 tn, falling 7.8% versus the year-ago period and reaching 54% of the full-year estimate. Revenue from domestic sources has amounted to VND718.8 tn, dropping 4.7% year-on-year and reaching 53.9% of the year’s estimate.
• The State Bank of Vietnam has adjusted the credit growth target in 2023 for credit institutions with a system-wide allocation of about 14%.
• The total value of corporate bond issuance in June was VND8,170 bn. Accumulated from the beginning of the year until now, the total value of corporate bond issuance was recorded at VND42.8 tn, with 7 public issuances worth more than VND5.5 tn and 35 private placements with total value of VND37.3 tn (accounting for 87%).
• In 6M2023, FDI inflows continued to remain stable, registered FDI reached $13.43 bn (-4.3% YoY), FDI reached $10.02 bn (-0. 1% YoY).
• The Ministry of Industry and Trade has conducted an inspection in which Vietnam Electricity Group (EVN) was found to be responsible for the power supply crunch, most recently in northern Vietnam, due to its slow investments in electricity infrastructure.
• By the end of 2021, the Intel Corporation had injected a total of $1.5 bn in Vietnam. Intel Products Vietnam (IPV) is now the largest of the four factories in terms of assembly and testing. Regarding the possibility that IPV will be upgraded to participate in more stages of the chip production process.
• The government plans to seek National Assembly approval for the global minimum tax. The tax aims to reallocate taxing rights on about US$200 bn worth of profits from the companies to the countries where they do business and to end the “race to the bottom” on tax rates. If approved, the tax, at a rate of 15%, would be effective starting next year.
• Incoming remittances to HCMC amounted to US$4.4 bn 6M 2023, equivalent to 66% of the full-year figure in 2022.
• State budget revenue in 6M2023 reached 875,800 bn VND, equaling 54% of the estimate exempted, extended taxes, fees, charges and land rent about VND70,300 bn (reduction of 28,300 bn VND, extension 42,000 bn VND).