Week 07/11 – 11/11

Company News

frt.vn, hpg.vn, kbc.vn, nvl.vn, shb.vn, vib.vn, mwg.vn, fts.vn, bsr.vn, dig.vn, pow.vn, bwe.vn, nvl.vn, baf.vn

BAF VN: still intends to issue VND600 bn of convertible bonds without warrants, without collateral to the IFC (the World Bank member). The release time is expected to take place in 4Q22 or 1Q23.

BSR VN: recorded, in Q3, revenue of VND39,570 bn (2.2 times higher YoY) and PAT of VND455 bn (-3% YoY). For 9M22, BSR reached revenue of VND126,720 bn (+90% YoY) and PAT of VND12,899 bn (3 times higher YoY).

BWE VN: recorded, for 10M22, total revenue of VND3,137 bn and PAT of VND575 bn (+16% and 4% respectively, YoY), completed 81% of the revenue target and 77% of the year’s profit plan after 10M22.

DIG VN: is expected to record VND611.7 bn in revenue from the opening and sale of phase 1 of Vi Thanh Residential and Commercial Project.

Comment: I expect that every real estate project in HCMC is going to have issues for the next 3-6 months, at least.

FRT VN: decided to increase the capital contribution in Long Chau from VND225 bn to VND450 bn by buying 22.5 mn shares at the price of VND10,000 /share, raising the ownership rate from 85.07% to 89.93%.

Comment: Long Chau appears to be the gem in this co.

HPG VN: stopped two blast furnaces in Dung Quat Complex and two blast furnaces in Hai Duong Complex. HPG VN For Oct 2022, HPG posted crude steel output of 567k tons (-19% YoY). Sales volume of construction steel, billet, and hot-rolled coil (HRC) was recorded at 492k tons (-42% YoY), including 210k tons of construction steel (-55% YoY) and 267k tons of HRC (+30% YoY). For 10M22, HPG produced 6.6mn tons of crude steel (-2% YoY). Sales of steel products were reported at nearly 6.2mn tons (-3% YoY). Of which, construction steels and HRC steels achieved 3.6mn tons (+13% YoY) and 2.3mn tons (+9% YoY), respectively.

Comment: For years every broker was saying this is a buy buy buy, well it just needed a drop in steel price for inventory losses and then you know the rest of the story…

KBC VN: was approved to expand 90 hectares of Quang Chau Industrial Park with an investment of nearly VND1,000 bn and Foxconn signed a lease of more than 50 hectares.

FTS VN SBI Financial Services Co., LTD., which relates to BoD Member Ueno Taro, registered to purchase 1.94mn FTS shares via order-matching and/or block trade methods from Nov 10 to Dec 08. If successful, its stake would be increased from 22.51% to 23.5% (45.84mn shares).

Comment: Will the Japanese help to right this co?

MWG VN CEO cum BoD member Tran Huy Thanh Tung registered to purchase 500k MWG shares via order-matching or block trade method from Nov 11 to Dec 09. If successful, his stake would be increased from 0.726% to 0.76% (11.13mn shares).

NVL VN BoD has approved to cancel the Record date on Nov 14 for exercising the right to issue bonus shares as the issuance plan is no longer suitable for the current situation. NVL VN: explained about 5 sessions of hitting the floor price. As the stock prices have fallen recently due to sentiment in the stock market and affected by many macro conditions.

Comment: They’ll be bankrupt by this or next week. Vietnam decided to kill the corporate bond market and NVL is one of those that will suffer. Some say rightly so.

POW VN: estimated, in October, revenue of VND1,860 bn (+83% YoY). For 10M22, POW’s revenue reached VND22,628 bn (+4% YoY).

SHB VN Nov 23 and Nov 24 will be the ex-date and record date, respectively, for paying 2021 stock dividend at the ratio of 100:15.

VIB VN: completed a loan disbursement worth $150 mn (equivalent to VND3,700 bn ) from the International Finance Corporation (IFC).

Comment: Vietnam is relying a bit too much on foreign funding imo. But that’s what’s needed for “growth” my mid-term fear for the country is when/if they reduce the

VHC VN: recorded, in October, export revenue of VND1,014 bn (+25% YoY and +11% MoM).

VNM VN: announced that it will raise the total investment capital for projects in Cambodia to $42 bn (nearly VND1,100 bn) and plans to build a dairy farm with raw milk output of over 4,000 tons/year.

Country News

1. The liquidity of Vietnam’s banking system is still “good with a surplus,” central bank Governor Nguyen Thi Hong said in a media interview* posted on the regulator’s website. The State Bank of Vietnam is ready to aid banks with liquidity if necessary to ensure their capacity to make payments, especially at the end of the year, Hong added. (Bloomberg)
2. Stock brokerages are increasing leverage loan interests by around 2% points to 14% a year after the central bank hiked its policy rates twice last month.
3. HCMC, the nation’s economic center, has seen 51 producers in 17 processing zones and industrial parks reporting an order shortfall, which has forced many of them to resort to mass layoffs.
4. As of October 2022, the export of agriculture – forestry – fishery has reached more than $44.9 bn (+14.1% YoY) and a trade surplus of $ 7.7 bn (+83.7% YoY) which contributed greatly to Vietnam’s record trade surplus of $9.4 bn during this period.
5. Replanted-forest wood exporting businesses are finding it tough to claim VAT refunds, which have reached VND1,000 billion since January this year.
6. September saw Vietnam importing 18,303 completely-built-up (CBU) cars, mainly from Indonesia, Thailand and China, according to data from the General Administration of Vietnam Customs.
7. For 9M22, the total bilateral trade turnover reached more than $5.22 bn, of which Vietnam had a trade surplus of $4.07 bn, with the total export turnover to the UK reaching nearly $4.65 bn (+8.1% YoY).
8. For 10M22, the total import-export turnover of Vietnam reached $616.3 bn (+14.1% YoY). By the end of 2022, the total import and export turnover of the whole country is expected to reach $740 bn.
9. The National Assembly has set an economic growth target for 2023 at 6.5% and GDP per capita at $4,400. The target was approved by 93.57% of 466 lawmakers at a session Thursday.
10. Commercial banks have reduced their holdings of corporate bonds amid a bleak bond market outlook and credit crunch.