Week 21/08 – 25/08

Company

BSR VN: In 6M 2023, PVOIL supplied BSR with a total of 28.3 mn barrels of crude oil, equivalent to 156,137 barrels/day for Dung Quat Oil Refinery to operate at 106% capacity; in which, Vietnam crude oil accounts for 74%, the rest is imported crude oil .

CTD VN: approved the plan to issue more than 24.8 mn shares to increase share capital at the rate of 33.3%.

Comment: Jebusss…..just stop vietnam co’s. You’re already dodgy enough as a contractor, especially one w/ the sordid history of CTD, but this just doesn’t help…

EIB VN: was approved by SBV to increase charter capital by a maximum of nearly VND2,655 bn as paying stock dividend at the rate 18%.

Comment: Another bank…issuing equity.

HBC VN: and PrimeTech Constructions will coordinate to implement the project in the island nation of Vanuatu located in the southwestern Pacific Ocean, with a total investment value of about VND41,600 bn, equivalent to AUD2.7 bn.

Comment: I have no idea who this contractor is, but it’s able to win a project in Vanuatu? Either they’re amazing and have a great track record of building island resorts, or they’re going to lose their shirts on this project.

KBC VN: recorded, in 6M2023, the increase of PAT by VND265 bn to VND2,068 bn after the audit, due to an increase in revenue from land and infrastructure leasing and a decrease in administrative expenses during the period.

KDC VN: held a 51% stake of Tho Phat dumpling brand. KDC will continue to increase its ownership to more than 70% in Q32023.

NVL VN: announced unusual information about late payment of interest, principal of 3 lots of bonds with total value of VND31 bn and the use of real estate assets to pay bond debt..

Comment: “unusual information about late payment of interest” no, there’s nothing unusual about this company, its bankrupt, and doesn’t have any cash on their b/s to pay off creditors.

PNJ VN: recorded, in July, net revenue of VND2,364 bn and PAT of VND85 bn (-6% and +7% respectively YoY). For 7M2023, PNJ’s net revenue reached VND18,823 bn (-9.2% YoY) and PAT reached VND1,171 bn (+0.3% YoY), fulfilling 53% of revenue target and 60% of annual profit plan.

Comment: It’s the consumer play for VN, but they never disclose the breakdown of profits across their segments…however the company does have a natural protection from the government as any imported jewelery has a 30% tax on it.

SAB VN: announced to issue nearly 641.3 mn shares to existing shareholders. The last registration date is September 15th and the ex-rights date is September 14th. SAB’s charter capital will increase from nearly VND6,413 bn to VND12,826 bn.

Comment: YAY MORE FRIGGIN EQUITY!

VCG VN: Vietur consortium consists of 10 members led by a Turkish enterprise, is the winning unit with the winning price of nearly VND27,814 bn.

VHM VN: approved the issuance of up to $500 mn of international bonds. This is a non-convertible bond, without warrants and secured by assets. The par value of each bond is expected to be $200,000..

Comment: Is this because no one domestically will take it?

VIC VN: GSM initial charter capital is VND 3,000 bn, in May 2023, GSM registered to raise the capital to 5,650 bn.

Comment: Which is funded by….more FRIGGIN EQUITY INCREASES.

Country

• Disbursement rates in the first seven months of 2023 reached 37.85% of the Government’s target, above the previous year’s 34.47%. However, concerns remain regarding the full utilization of already-allocated funds by year-end.
• Vietnam’s January-July coal imports soared by a steep 53% year-on-year to nearly 30 mn tons. Despite the higher volume, the total coal import value dropped 12.2% year-on-year to around US$4.34 bn due to a sharp price decline, showed data from the General Department of Vietnam Custom.
• Demand for gold in Vietnam shrank 9% in 2Q due to economic difficulties. Vietnamese purchased 12.8 tonnes of gold in 2Q 2023, down 1.3 tonnes yoy.
• The export price of Vietnamese rice rose to the highest level in the world. Especially, the export price of 25 % broken rice was sold at US$618-622 a ton, exceeding Thailand’s price by $57 per ton while Vietnamese 5-% broken rice fetched $628-632 per ton, $10 per ton higher than Thailand’s rice price
• The newly introduced trading system for privately-placed corporate bonds has facilitated transactions totaling around VND5.8 tn since it was launched last month, according to the Hanoi Stock Exchange (HNX).
• The Vietnam Institute for Development Strategies has forecasted that the average gross regional domestic product (GRDP) of the southeastern region of Vietnam will range from 6.04% to 8.07% between 2021 and 2030.
• The IIP in Hanoi rose by just 2.3% yoy in 1H 2023, making it a heavy task for the city to reach the year’s IIP growth target of 7.5 – 8%.The sales of industrial products also fell 1.3% during the period, leading to a yoy increase of 16.9% in the inventory index as of June 30.
• The Ministry of Finance has completed a draft report on mid-term assessment of the public debt payment and borrowing plan for the 2021-2025 period. According to the draft, the government plans to borrow nearly US$52 bn in 2024-2025. Of the number, VND750 tn ($31.2 bn) will be used to offset the central budget deficit and VND465.8 tn ($19.4 bn) will be used to pay the due principal, including VND313 tn ($13 bn) of domestic principal debts and VND 152.8 tn ($6.3 bn) of foreign principal.
• The total registered foreign investment capital in Vietnam from the beginning of this year to July 20 reached USD16.24 bn, +4.5% yoy. Of the total, USD11.58 bn had been disbursed, a rise of 0.8% yoy. Between January and July, there were 1,293 newly-registered FDI projects with a combined capital of 7.94 bn USD, up 75.5% in the number of projects and 38.6% in capital yoy.
• The Vietnam Institute for Development Strategies has forecasted that the average gross regional domestic product (GRDP) of the southeastern region of Vietnam will range from 6.04% to 8.07% between 2021 and 2030.
• According to the plan of the contractor KRX, the Vietnamese side will hold the final test (FAT) in November and it is expected that KRX will complete the preparation of the system by the end of December to be ready for deployment.
• In July, fertilizer exports reached 141,006 tons, equivalent to $54 mn (+26% in volume but -27% in value YoY). For 7M2023, fertilizer exports reached nearly 942,576 tons with a turnover of $391 mn (-15% in volume and -46% in turnover YoY).
• Currently, the total amount of sugar produced domestically and sugar imported only meets 50% of the consumption demand in 2023. Therefore, the Food and Food Association of Ho Chi Minh City proposed to add an additional import tariff quota at least 600,000 tons to ensure the domestic supply and demand.