Week 14/08 – 18/08

Company

ctr.vn, fpt.vn, hhv.vn, mwg.vn, nvl.vn, ssi.vn, vbb.vn, vci.vn, vib.vn, vic.vn

CTR VN: recorded, in July, revenue of VND1,011 bn and PBT of VND57 bn (+23% and +18% respectively YoY). For 7M2023, CTR recorded revenue of VND6,052 bn (+20% YoY) and PBT of VND348 bn (+21% YoY), achieving 59% of the revenue plan and 57% of the year’s profit target.

FPT VN: recorded, in July, revenue of VND4,263 bn and net profit of VND493 bn. For 7M2023, FPT recorded revenue of VND28,429 bn and PBT of VND5,069 bn (+22% and +20% respectively YoY), achieving 54% of the revenue target and 56% of the year profit target.

Comment: They keep performing, such an amazing machine built by FPT….

HHV VN: plans to issue a maximum of 82.3 mn shares to existing shareholders at the rate of 25%. The asking price is VND10,000 /share.

Comment: More equity issuance….

MWG VN: recorded, in July, revenue of VND9,800 bn (-11% YoY and +4% MoM). For 7M2023, MWG’s revenue reached VND66,370 bn (-19% YoY), fulfilling 49% of the full year revenue plan.

Comment: It’s the MoM # that is important. YoY nothing will great until the end of 3Q23.

NVL VN: Novagroup registered to sell 43 mn NVL shares by put-through method to balance the investment portfolio and support the structure of debts and other obligations from August 18th to September 15th.

Comment: It’s still on life support, it should be announced dead, bankrupt etc etc

SSI VN: divested 7% of SGN’s capital (equivalent to 2.35 mn SGN’s shares) and expected to earn nearly VND178 bn.

Comment: They need the capital to expand the margin book lending

VBB VN: VBB plans to offer 100.3 mn shares to existing shareholders to increase charter capital at the rate of 21% (shareholders owning 100 shares will be able to buy 21 new shares). Expected price is 10,000 VND/share. If successfully implemented, the bank’s charter capital will increase from VND 4,777 bn to VND 5,780 bn.

Comment: More equity issuance….

VCI VN: signed a contract to finance a syndicated loan worth $100 mn (equivalent to VND2,350 bn). The loan is arranged by Mega International Commercial Bank with short-term interest rates based on international money markets.

Comment: VCI is the best play on institutional investor trading volume in VN + the kicker of its investment book.

VIB VN: Dang Quang Tuan, son of private lender VIB’s chairman, has divested his entire 4.91% stake in the bank. The sale of 124.7 mn shares was done between July 21 and August 9, according to a company disclosure.

VIC VN: VFS shares of VinFast officially launched on Nasdaq on August 15th.

Comment: This funny spac is now trading at a market cap equal to 25% of the VN stock market and with only a 1% free float. Funnymentals to the extreme. And if you ask me, the group was happy to get retail investors piling into the domestic name so that they can probably issue something stupid

Country

• The GRDP economic growth rates of all provinces in 6M 2023 were reported to have a YoY increase of 5.65%. Amongst provinces in the region, Hau Giang is the province with the highest GRDP growth rate in the country with over 14%, the highest level since the province’s establishment. Moreover, the region’s total budget revenue in 6M2023 reached at 56.5 %.
• HCMC has urged the acceleration of work on public investment projects as the capital disbursement rate has been lower than expected so far this year. Data from the city government showed around VND18,646 bn in public investment capital had been disbursed by August 4, 2023, representing 27.2% of the city’s full-year target.
• In July 2023, Vietnam imported 8,929 cars, with a total turnover of more than $217 mn (-0.9 YoY in volume). For 7M2023, Vietnam imported nearly 80,000 cars with total turnover of nearly $1.87 bn (+2.4% in volume and +0.1% in turnover YoY).
• Auto sales jumped to 24,687 units in July, the second highest monthly number this year behind only March. The auto market has been going through a rough year amid low economic growth, with sales plummeting by 30% YoY in 7M to 162,000 units.
• In the trading session on August 15, SBV pushed the selling price of USD at the Exchange from 24,990 VND/USD to 25,025 VND/USD, equivalent to an increase of 35 VND. This adjustment of the State Bank made the USD selling price to the highest level ever. Compared to the beginning of the year, the USD selling price has increased by 245 dong, equivalent to 1%.
• The Airports Corporation of Vietnam (ACV) has announced that a consortium of six local companies won the bid for construction and installation of passenger terminal T3 at Tan Son Nhat International Airport. The VND9,000-bn package will be undertaken by the consortium which comprises Hanoi Construction Corporation, Construction Corporation No.1, Corporation 319 (Ministry of Defense), Truong Son Construction, Ricons Construction Investment, and Luu Nguyen Construction.
• In the last two weeks nearly 30 private banks have reduced deposit interest rates by around 0.3 % points to 7%. Most cuts have been for deposit terms of six months or more.
• Investors from Singapore, South Korea, Taiwan, Japan and Malaysia invested about $1.4 bn in merger and acquisition (M&A) deals in Vietnam’s real estate sector in the first seven months of this year.
• The State Bank of Vietnam has instructed banks to lower their lending interest rates by 1.5-2 percentage points to support economic recovery. They are required have to report their interest reduction plans by Aug. 25, and the results must be reported by Jan. 8 next year.
• The Ministry of Industry and Trade (MOIT) has presented a proposal for a tax incentive and a 3-percentage-point interest rate subsidy for producers in supporting industries that turn out priority products.