Week 11/12 – 15/12

ctr.vn, eib.vn, fpt.vn, hcm.vn, hhv.vn, hvn.vn, nvl.vn, pvd.vn, pow.vn, tpb.vn, vib.vn, vnm.vn

Company

CTR VN: recorded, in November, net revenue of VND1,122 bn (+37% YoY) and PBT of VND62.1 bn (+19% YoY). For 11M2023, net revenue reached VND10,364 bn and PBT was VND595 bn (+21% and +16% respectively YoY), achieving 97% of annual profit target.

Comment: The telco construction arm of the government continues to pump out great #s

EIB VN: plans to sell nearly 6.1 mn treasury shares at the price of VND20,199/ shares for the purpose of supplementing business capital.

FPT VN: announced the establishment of FPT Automotive company headquartered in Texas, USA to enter in automotive software market.

Comment: And they continue to setup new entities & buy entities throughout the world.

HCM VN: plans to issue 297.2 mn shares, of which 228.6 mn shares are offered to existing shareholders and 68.6 mn shares are issued to pay dividends. Charter capital is expected to increase from VND4,581 bn to VND7,552 bn.

Comment: Voila, this is what the brokers need to do. They all have to raise capital in order for the country to get rid of the pre-funding requirements, next the MoF will have to adjust some policies so that the local brokers aren’t 100% liable for any failed trades…and then hello Emerging Market status upgrade

HHV VN: approved the policy of participating in investment, construction and implementation of operational management at the investment project to build Dong Dang expressway in the form of public-private partnership (PPP) with total investment of VND22,000 bn.

Comment: Don’t know much about this company, looks interesting on paper, but the returns look rather low…

HVN VN: announced 2022 audit report, with a net loss of more than VND11,000 bn. Thus, HVN has recorded a lost for 3 consecutive years and is likely to be delisted from HOSE.

Comment: Woahhh there goes Vietnam Airlines.

NVL VN: plans to issue a total of 1.37 bn additional shares to raise a maximum amount of VND13,700 bn, instead of VND29,000 bn as previous plan.

Comment: Are they just figuring out that no one wants to be a shareholder? Or that there isn’t any capital available.

POW VN: recorded, in November, revenue of about VND2,460 bn (-19% and -11% respectively YoY). For 11M2023, POW’s estimated revenue is about VND27,431 bn (+3.3% YoY), reaching 90% of the year’s plan.

Comment: This company…really really needs to change its ticker…no large american fund can say “We own POW in Vietnam”

PVD VN: estimates PAT in 2023 to be about VND400 bn (4 times higher than the year plan) while in 2022 the loss is VND155 bn. In Q42023, PVD estimates PAT of VND56 bn.

Comment: O&G offshore services ftw!

TPB VN: Dragon Real Estate Development Joint Stock Company reported purchasing 27.6 mn TPB shares, equivalent to 1.25% of charter capital.

VIB VN: completed successfully mobilizing a medium and long-term syndicated loan worth $280 mn from 13 leading financial institutions in the region and the world, including United Overseas Bank.

VNM VN: announced to pay in advance two cash dividends with a total rate of 14%. Specifically, December 28th is the closing date for cash dividends at a rate of 5% and March 12th, 2024 is the closing date for cash dividends at a rate of 9%.

Country

• HCMC finds it extremely challenging to achieve its social housing target for the 2021-2025 period, with only 3.3% of the projects completed to date, well below the goal set by the Prime Minister. While HCMC achieved over 69% of its social housing target during the 2016-2020 period, the current progress indicates a significant slowdown, with only three out of 91 projects finished.
• Vietnam and Thailand have pledged to strengthen economic cooperation, with a mutual objective of increasing their two-way trade to US$25 bn.
• Fitch Ratings decided to upgrade Vietnam’s credit rating from BB to BB+ with a stable outlook.
• The Prime Ministers of Vietnam and Cambodia have proposed that the two countries strive to double bilateral trade to $20 bn in the following years.
• UOB forecasts that Vietnam’s GDP in Q42023 will increase by 7%.
• U.S. chipmaker Nvidia’s will expand its partnership with Vietnam’s top tech firms and support the country in training talent for developing artificial intelligence and digital infrastructure. Nvidia, has already invested $250 million in Vietnam, so far partnered with leading tech companies to deploy AI in the cloud, automotive and healthcare industries.
• Vietnam will import 26 mn tons of coal next year for coal-fired power plants. Power production in 2024 is expected to require 74.3 mn tons of coal, but domestic suppliers could meet 65% of the volume.
• For 11M2023, State budget revenue is estimated at VND1,537 mn bn (-7.1% YoY), equal to 94.9% of the estimate. In which, domestic revenue is estimated at VND1,272 mn bn (-3% YoY), equal to 95.4% of the estimate. Also, the total state budget expenditures are estimated to reach about VND1,502 mn bn (+10.9% YoY), equal to 72.4% of the estimate.
• HCMC had disbursed about VND15,600 bn in site clearance compensation for public investment projects in the year to November 30, achieving 59% of the full-year target, according to a recent report from the HCMC Department of Environment and Natural Resources.
• ADB forecasts that Vietnam’s growth in 2023 has decreased to 5.2% compared to the previous forecast of 5.8% while growth in 2024 is forecast to remain at 6.0%.
• The total State budget revenue in the January-November period amounted to nearly VND1.54 quadrillion, equivalent to 94.9% of the 2023 estimate.