Week 30/10 – 03/11

Country News:

• Seafood exports in October were estimated to reach over $863 mn (-5% YoY). For 10M2023, seafood exports collected nearly $7.5 bn (-20% YoY).
• Vietnam’s Manufacturing Purchasing Managers’ Index (PMI) remained below the 50 point threshold in October, falling to 49.6 (-0.1 point MoM). This result showed that the health of the manufacturing industry declined for the second consecutive month.
• In October, agricultural, forestry and fishery exports were estimated to reach $4.8 bn (+7.4% MoM and +12% YoY). For 10M2023, the industry’s exports were estimated at $43.08 bn (-4.2% YoY).
• The latest survey of deposit interest rates at banks on November 1 shows that interest rates for most terms are 0.2 – 0.5%/year lower than the beginning of last month. Some banks even reduced interest rates by more than 1%/year in just the past month.
• IIP in HCMC in 10M 2023 + 3.7% yoy. The pharmaceutical industry has surged by an impressive 19.2%, mechanical engineering by 7.4%, and electronic equipment manufacturing by 6.0%. But the food and beverage sector has declined by 6.0%.
• HCMC is grappling with the prospect of a budget revenue shortfall in the range of 4-5%, equivalent to nearly VND20 tn, in November and December this year.
• In comparison to the same period last year, the number of new businesses set up in October this year was 18.5% higher and their capital increased by 17.7%. Their employment rose 71.2% year-on-year.
• In October 30 trading session, Fubon FTSE Vietnam ETF issued a net of 15 mn fund certificates, equivalent to about 5.1 mn USD. The issuance amount of Fubon ETF corresponds to about VND 126 bn and the entire amount has been disbursed to buy Vietnamese stocks. Fubon FTSE Vietnam ETF’s portfolio size reached more than NT$23.3 bn. HPG is the largest proportion with 9.96% (76.5 mn shares), followed by VCB (9.89%), VNM (9.88%), VHM (9. .03%), VIC (8.7%),…
• SBV continues to offer 28-day T-bills according to the interest rate bidding mechanism. As a result, all 7/7 participating members won the bid with a total volume of VND 20,000 bn – the highest level in the past half month. At the same time, the winning interest rate on treasury bills increased again to 1.5% – the highest since the beginning of the cycle.
• CPI in October increased 0.08% from last month and 3.59% from a year earlier, the General Statistics Office (GSO) reported on Sunday. Increased education fees and rice prices are blamed for the CPI rise.
• From September 19 to October 27, the net mobilized capital of Fubon FTSE Vietnam ETF amounted to 45 mn USD, equivalent to disbursement of about 1,100 bn VND. According to data from Fubon FTSE Vietnam ETF, from October 23-17, the fund withdrew a net of 32.5 mn fund certificates, equivalent to a value of USD 12 mn (more than VND 280 bn).

Company News

bcm.vn, bmp.vn, kbc.vn, kdh.vn, nvl.vn, tcb.vn

BCM VN: approved capital contribution to increase charter capital for Vietnam – Singapore Industrial Park Joint Venture Company Limited (VSIP). Specifically, VSIP’s charter capital will be increased by VND1,056 bn, of which BCM will contribute more than VND517 bn.

BMP VN: approved the first advance dividend of 2023 in cash at the rate of 65%.

KBC VN: approved technical infrastructure investment and construction projects in Song Hau 2 Industrial Park with total capital investment of nearly VND5,570 bn.

Comment: It takes close to 20 years to get an IE in Vietnam up and running from conception of the idea to government/license approvals, land purchases etc etc hence why there’s arguably a “value” in the existing players. But KBC…no one can honestly tell me that they know how much land they legally have to sell..

KDH VN: The Privia apartments are qualified to sell, lease and buy houses to be formed in the future by Ho Chi Minh City Department of Construction.

NVL VN: was removed from the warning from November 3rd, 2023.

Comment: Well here’s your warning, it’s still a POS.

TCB VN: FiinRatings ranks TCB’s credit rating at A+ as “Stable” outlook.

Comment: I do wonder if there is a credit rating agency in VN that would say “they are one write-off from being bankrupt” or perhaps this is a relative grade.

Financial Results

acvn.vn, baf.vn, bcg.vn, bid.vn, ctg.vn, dxg.vn, frt.vn, hbc.vn, hvn.vn, gmd.vn, mbb.vn, mwg.vn, pc1.vn, plx.vn, pvd.vn, sjs.vn, vbb.vn, vnm.vn, vst.vn

• ACV VN: Reported PBT in 3Q 2023 reach VND 3,414 bn, up 14% yoy. This is also the new peak profit of this business in the last quarter.
• BAF VN: recorded, in Q32023, revenue of VND1,219 bn (-37% YoY) and PAT of VND39 bn (-75% YoY). For 9M2023, BAF’s revenue reached VND3,625 bn (-26% YoY) and PAT reached VND53 bn (-81% YoY), achieving 48% of the revenue plan and 17% of the profit target.
• BCG VN: recorded, in Q32023, revenue of nearly VND1,018 bn (-14% YoY) and PAT of VND9 bn (-77% YoY). For 9M2023, DXG’s revenue reached nearly VND2,834 bn and PAT was VND185 bn, completing to 41% of the revenue plan and more than 28% of profit target.
• BID VN: announced that PBT in 3Q 2023 – 12% yoy to VND 5,893 bn. Accumulated for 9 months, this bank’s profit reached 19,763 bn VND, + 12% yoy.
• CTG VN: Recorded VND 4,871 bn PBT in 3Q 2023, + 17% yoy. In 9 months, this bank’s profit was 17,401 bn VND, an increase of 10%.
• DXG VN: recorded, in Q32023, net revenue of nearly VND1,214 bn (-3% YoY) and PAT of VND68 bn (-56% YoY). For 9M2023, DXG achieved VND2,306 bn VND in net revenue and VND129 bn in PAT (-50% and -77% respectively YoY).
• FRT VN: Reported PBT in 3Q 2023 reach VND 1 bn, down 99% yoy.
• HBC VN: announced the financial statements for 3Q 2023 with revenue down nearly 50% yoy to VND 1,893 bn. Gross profit decreased by nearly 86% to VND 40 bn.
• HVN VN: recorded, in Q32023, revenue of VND23,569 bn (+11% YoY) and loss after tax of VND2,277 bn. For 9M2023, HVN’s revenue of VND67,628 bn (+32% YoY) and net the loss after tax of VND3,743 bn (lower 2 times YoY).
• GMD VN: Reported PBT in 3Q 2023 reached VND 397 bn, up 18% yoy. This business continues to grow after record profits in 2Q 2023.
• MBB VN: recorded 7,284 bn VND in PBT of 3Q 2023, + 16% yoy. Accumulated in 9 months, this bank has made a profit of more than VND 20,000 bn, a growth of 10%.
• MWG VN: BHX continued to lose nearly 905 bn VND in the 9M. Thus, the department store segment continued to lose more than VND 246 bn in 3Q after losing nearly 660 bn VND in 1H 2023.
• MWG VN: reported revenue in 3Q 2023 of VND 30,287 bn, -5.5% yoy. However, MWG’s revenue has grown month by month. By September this year, this company’s revenue had peaked since the beginning of the year.
• PC1 VN: announced the consolidated financial report for 3Q 2023 with net revenue reached VND2,220 bn, – 26% yoy. However, cost of goods sold – 35%, leading to gross profit growth of 35%, recording VND 534 bn.
• PLX VN: has just released its consolidated financial statements for 3Q 2023, recording a slight decrease in net revenue of 2% yoy to VND 72,414 bn. Gross profit reached VND 3,839 bn , up 35% yoy.
• PVD VN: 3Q23: prelim PATMI VND 151bn, improved from net loss VND33bn 3Q22. 9M23: TMI VND 400, up from net loss VND 149bn in 1H22.
• SJS VN: Revenue increased while cost of capital decreased SJS reported that PBT in 3Q + 265% and PBT in 9M of the year increased by 208%.
• VBB VN: PBT of  VBB – 67% and 22% in 3Q and the 9M of the year, respectively.
• VNM VN: reported PBT of 3Q 2023 + 8% to VND 3,076 bn. This is also the highest profit level in the past two years. Saving input materials is the reason for the company’s profit growth.
• VST VN : lost nearly 15 bn VND in 3Q and 9M, VST profited more than 503 bn VND due to PBT of nearly VND 518 bn in 2Q mainly due to reduced income.