Week 05/12 – 09/12

vgc.vn, nvl.vn, pdr.vn , bcg.vn, kbc.vn, hpg.vn, nt2.vn, acb.vn, hdb.vn

Corporate News

ACB VN: is the latest member in the Vietnamese banking system to have completed risk management in accordance with Basel III standards.

Comment: Perhaps 1 of 2 banks that you could buy and close your eyes and not worry about them blowing up. Very conservative management team.

BCG VN: approved the additional contribution of VND500 bn to BCG Energy Joint Stock Company, bringing the total value of the group’s contributed capital to VND3,203 bn, accounting for 71.18% of the charter capital.

KBC VN: plans to borrow VND200 bn from Saigon – Bac Giang Industrial Park Joint Stock Company in the form of credit.

KBC VN: ask for shareholders’ opinions to approve the cancellation of the plan to offer 150 mn private shares in 2022 to raise capital, restructure debt and invest in member units. KBC is also expected to submit to shareholders for approval to buy back 100 mn shares (equivalent to 13% of the number of outstanding shares to reduce charter capital).

Comment: The idea of KBC has always been attractive, but I still remember going through their land plots with the management team and they couldn’t confirm exactly which land was theirs,sold, backlogged, etc etc…but hey it’s VN, we’re supposed to believe in that all’s well.

HDB VN: consulted shareholders to issue $500 mn of convertible bonds to international investors. In addition, HDB also requested to adjust the foreign room from 18% to 20%.

Comment: This period in VN is going to open their capital markets further, great news for us. Though do not expect for the market to move up from Frontier to Emerging status within the next 3 years…their currency needs to be more freely traded for this to happen.

HPG VN: steel consumption, in November, decreased by 30% YoY. For 11M22, HPG sold 6.6 mn tons of steel (-7% YoY ) mainly because there were no export orders of steel billet.

NT2 VN: estimated business results in 2022 with a PBT of about VND796 bn, exceeding 62% of the whole year plan. NT2 contributes more than VND261 bn to the state budget, reaching 119% of the annual target.

NVL VN: NovaGroup has been forced sell more than 40 mn of NVL shares by securities companies. NVL has announced the early redemption of NVLH2122015 bonds with a total par value of VND1,000 bn.

NVL VN: Three members of the BOD resigned, including Mr. Nguyen Ngoc Huyen, Mr. Nguyen Duc Dung and Mr. Jeffrey David Perlman. In addition, in order to secure a loan of up to $100 mn, NVL approved a decision to add additional security measures, including mortgaging shares in two real estate companies Van Phat and Forest City.

Comment: Still expect to see the owners gone, or the assets carved up amongst multiple groups, it’s bankrupt. Expect to see a lot of international capital backing some “independent” locals

PDR VN: announced the completion of the transfer of nearly 28.5 mn ordinary shares, equivalent to 88.99% of the charter capital of Hoa Binh Real Estate Joint Stock Company.

Comment: Another prop co that should be gone.

VGC VN announced the accumulated business results in 11M22 with the consolidated profit of the whole corporation reaching 127% of the year plan (+59% YoY). Consolidated profit of the parent company exceeded 32% of the annual target.

Comment: I do hope that they decide to list each business group individual so then we can have access to better pure plays.

VIC VN: VinFast Singapore announced that it has filed an application for registration under Form F-1 with SEC for IPO of common shares. The number of shares to be offered and the expected price range are not yet to be determined.

Comment: The founder has successfully found his way to legalise his wealth outside of VN.

Country News

1. In November 2022, the total import and export turnover of goods was estimated at $57.58 bn (-1.2% MoM and -7.8% YoY). For 11M22, the total import and export turnover of goods reached $673.82 bn (+11.8% YoY), of which exports increased by 13.4%; imports increased 10.1%.
2. Vietnam’s central bank said on Monday it had raised its 14% cap on the local banking system’s credit growth for this year by 1.5-2.0 %age points
3. Vietnam ranks fourth in Southeast Asia in auto production in the first 10 months at 362,000 units, up 16.4% year-on-year, according to the General Statistics Office.
4. LG will invest another $4 bn in Vietnam. The Group wishes to continue to cooperate and invest in Vietnam in many fields and turn Vietnam into a center of camera production for phones in the future.
5. After 9M22, 4 Samsung factories in Vietnam brought in total revenue of about $56.6 bn and profit of nearly $4 bn.
6. South Korean electronics giant Samsung announced plans Tuesday to increase its investment in Vietnam from $18 bn to $20 bn.
7. The northern province of Bac Ninh has so far this year attracted more than 2 bn USD in FDI, thanks to innovations and increased efficiency of investment promotion activities.
8. For 11M22, the export turnover of agricultural, forestry and fishery products reached over $49 bn (+11.8% YoY). Of which, there are 8 groups of exports of over $2 bn are coffee, rubber, rice, vegetables, cashew, shrimp, pangasius, and wood products.
9. Vietnam’s real GDP growth is forecasted to exceed 8% in 2022.
10. In order to compensate for the decline of other growth drivers, the Government is planning to boost public investment in 2023. It is expected that there will be VND793,000 bn for public investment disbursement in 2023 (an increase of 34 % compared to the public investment plan in 2022).