Week 02/10 – 06/10

cii.vn, ctd.vn, dxg.vn, hah.vn, hdb.vn, kdc.vn, kdh.vn, msn.vn, nvl.vn, nlg.vn, pow.vn, stb.vn, vcg.vn, vhm.vn, vic.vn, vgc.vn

CORPORATE NEWS:

CII VN: announced a public bond offering with an estimated amount of more than VND2,840 bn. Accordingly, the proceeds will be used to invest in bonds of two subsidiaries, BOT Ninh Thuan (VND1,200 bn) and Hanoi Highway (VND1,640 bn).

Comment: Always liked the idea here, but the execution is a question mark.

CTD VN: received a decision from the People’s Court of Ho Chi Minh City on deciding not to open bankruptcy procedures for CTD on October 3rd.

Comment: Well paid, i mean played.

CTG VN: announced the results of its second public bond offering with a total value of VND4,000 bn, including VND1,500 bn of bonds with a term of 8 years and VND2,500 bn with a term of 10 years.

DXG VN: approved a plan to privately sell 57 mn shares to foreign investors. To ensure legal regulations, DXG approved the temporary blockade of foreign room to offer private shares at a rate of 45.34%.

DXG VN: The Dragon Capital fund group net bought a total of nearly 7.5 mn DXG shares, increasing its ownership to more than 11% during August 25th – October 3rd.

Comment: Hmmm…..I suppose in 3-5 years this will make sense..until then.

HAH VN: recorded, in 8M2023, revenue of VND1,947 bn and PAT of VND288 bn, achieving 66% of the year’s revenue target and 59% of the year’s profit target.

HDB VN: approved the issuance of an additional 20 mn ESOP shares.

KDC VN: was fined and had tax arrears of nearly VND21 bn in which KDC was fined VND3.2 bn for false declaration leading to underpayment of tax.

KDH VN: approved the guarantee of all debt repayment obligations in full and on time for the VND1,100 bn loan of the Company Limited Invest in Khang Phuc’s house business at CTG.

MSN VN: U.S. private equity firm Bain Capital has made its first investment in Vietnam, with at least $200 mn in MSN, and could bring in other investors to raise that to $500 mn.

Comment: Look at the structure of the deal, it isn’t straight equity.

NVL VN: Aqua City (NVL’s subsidiary) announced a loss of more than VND200 bn, remaining VND11,300 bn in liabilities (9 times more than its equity capital).

NVL VN: announced the delay in payment of bond lot NVLH2223008 (with interest value of more than VND7.7 bn and principal value of VND157.3 bn).

Comment: It’s being kept alive on life support because the country doesn’t have a proper bankruptcy mechanism.

NLG VN: announced the successful offering of VND500 bn in private bonds to OCB.

Comment: The only decent property player in VN.

POW VN: estimated, in Q32023, at VND6,358 bn (+5% YoY) and pre-tax loss of VND47 bn. For 9M2023, POW’s revenue is estimated revenue at VND22,213 bn (+8% YoY) and PBT of VND882 bn (-48% YoY), completing 74% of the revenue plan and 69% of the profit target.

STB VN: recorded, in 8M2023, total net income of nearly VND17,500 bn (+9.3% YoY) and PBT of VND6,175 bn (+56% YoY), reaching 65% of the year plan.

VCG VN: VCR approved the termination and liquidation ahead of time of the investment cooperation contract with VCG. At the same time, VCR must return VND2,200 bn of capital contribution within 90 days from September 30th.

VHM VN: purchased an additional 51.33% shares to complete the purchase of 100% shares of Ca Tam Tourism Joint Stock Company with total value of VND198 bn.

VHM VN: Thai Son (a subsidiary of VHM) plans to build an urban area and a golf course in two northern localities at a cost of VND23.4 tn ($962 mn).

VIC VN: VinFast recorded for Q32023 with total revenue of VND8,254 bn ($342.7 mn) (+4% QoQ and +159% YoY). Thus, VinFast has a net loss of more than VND15,000 bn. For 9M2023, Vinfast lost a total of VND41,593 bn.

Comment: You’re in dreamland if you believe that VF will actually work.

VGC VN: estimated, in September, the PBT at 115% of the monthly plan. In Q32023, PBT is estimated to reach VND565 bn (+83% YoY). For 9M2023, PBT reached VND1,590 bn (-22% YoY), exceeding 31% of the year plan.

NEWS:

• On September 29th, SBV continued to withdraw an additional VND3,800 bn through the 28-day T-bill channel with an interest rate of 1%/year. Thus, the SBV withdrew nearly VND94,000 bn in 7 consecutive sessions and interest rate inched up 1%/year.
• As of September 20th, the economy’s credit growth compared to the end of 2022 reached 5.73%. In addition, total means of payment increased by 4.75% YoY. Capital mobilization of credit institutions increased by 5.8% YoY.
• HCMC’s GRDP +6.71% between July and September, bringing total growth in 9M2023 to 4.57%. The services sector contributed with an increase of 5.67% YoY.
• In September 2023, Vietnam’s seafood exports are estimated to reach $862 mn. For 9M2023, seafood exports will reach over $6.6 bn (-22% YoY).
• National utility Vietnam Electricity (EVN) will spend VND1.1 tn ($45.26 mn) to connect a 45-kilometer line power plant in Laos with Vietnam’s grid to import electricity.
• Merchandise export turnover in September was estimated at $31.41 bn (-4.1% MoM and +4.6% YoY). Import turnover is estimated at $29.12 bn (-0.7% MoM and -2.6% YoY).
• The World Bank (WB) forecasts that Vietnam’s economy will grow by 4.7% in 2023 and will recover to 5.4% and 6% in 2024-2025, respectively. However, the outlook is subject to a number of evolving risks.
• In the October 3rd, the SBV continued to withdraw an additional VND10,000 bn through the 28-day T-bill channel with an interest rate of 1.18%/year. Thus, the SBV withdrew nearly VND110,600 bn in 9 consecutive sessions.
• In September, pangasius exports saw an increase of 9% YoY. For 9M2023, Pangasius fish had contributed $1.4 bn to the country’s export revenue.
• The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) in September was 49.7, down from 50.5 in August.
• South Korean semiconductor manufacturer Hana Micron, which specializes in chip packaging and memory products eyes $1B microchip investment in Vietnam by 2025.
• Vietnam plans to launch the country’s largest race earth mine in 2024.
• Sales of the newly released iPhone model surpassed the VND1 tn ($42 mn). In particular, MWG sold more than 15,000 for worth VND500 bn, accounting for nearly 50% of the market. Other players include FRT, CellPhoneS, ShopDunk, and Hoang Ha Mobile reported sales of 2,000-7,000 each.
• The Ministry of Industry and Trade approved the electricity generation price frame for 2023. Accordingly, the electricity generation price frame for coal-fired power plants is 0 – 1,559.70 VND/kWh. The electricity generation price range for hydroelectric plants is 0 – 1,110 VND/kWh.
• Rice export turnover in 9M2023 reached $3.66 bn (+40.4% YoY). This figure has exceeded the highest rice export value achieved in 2011 ($3.65 bn).
• Vietnam’s banking sector injected nearly VND120 tn, equivalent to around 1% of total outstanding loans, into the economy during the final week of September.
• A total of 72 overseas projects of State-owned enterprises (SOE) brought back to the country combined profit of around US$2 bn, the Government said in a report to the National Assembly.
• The government has extended the 30% cut in land rental fee it made this year for one more year.