Week 26/02 – 01/03

CORPORATE NEWS – ctg.vn, gvr.vn, kdh.vn, hax.vn, hcm.vn, mwg.vn, nvl.vn, pvt.vn, szc.vn, vic.vn

CTG VN: wants to retain more than VND16,400 bn in profit in 2022 to pay dividends in shares.

Comment: ………….. someone has to do an exercise to see how many shares have been issued by vietnamese companies as a % of of total shares over the past decade.

GVR VN: lost a lawsuit against Dak R’Tih Hydropower and will have to repay more than VND141 bn.

Comment: I am impressed that they lost.

KDH VN: plans to offer more than 100 mn shares in 2024 to 20 professional securities investors. The expected offering price is 27,250 VND/share, a 12% discount compared to the average closing price.

Comment: “professional” – Look I like to define the way I invest as professional retail, but KDH is offering this to pure punters…

HAX VN: plans to pay cash dividends and stock bonuses, total rate of 18% in which 3% is paid in cash and 15% is a stock bonus.

HCM VN: Dragon Capital Markets Limited (DC) is expected to spend VND687.4 bn to exercise the right to buy more than 68.7 mn shares of HCM. Estimated implementation time is from March 6th to March 18th

Comment: One day people will learn about all the warehousing HCM did on behalf of DC funds and then DC funds taking the shares back at a price below market and recognising a magical profit. Anyways – this is prep the securities co for the requirement to deal with pre-funding.

MWG VN: announced its 2024 business plan with a target of VND125,000 bn in net revenue and VND2,400 bn in PAT (+6% yoy in revenue and 14.2 times yoy in PAT).

MWG VN: According to Reuters, CDH Investments from China is negotiating to buy from 5% –  10% shares of the Bach Hoa Xanh chain.

Comment: It’s a financial investor. And for the group … they just aren’t going to perform well….for at least another 18 months…that’s how poorly Vietnam’s mass market economy really is.

NVL VN: Nova Group registered to sell 4.4 mn NVL shares to balance its investment portfolio and support debt structure.

Comment: And they’re still not bankrupt?! I’m so impressed.

PVT VN: revealed the investment plan of about $819 mn in the 2024-2025 period to increase the fleet size to 82 units, the investment capital for 2024 is $492 mn.

SZC VN: wants to borrow up to VND2,000 bn more at CTG for the Chau Duc Industrial Park project.

VIC VN: VinFast Auto officially signed a cooperation agreement with Bahwan Automobiles Trading Company (BAT) on the distribution of electric vehicles in the Oman market. This event helps VinFast be present in the Middle East region as well as expand globally.

Comment: They’re broke, wtf is going on here? Relook at the SEA cows, https://www.thaicapitalist.com/random-thoughts-sea-cows/, for VN thats Vingroup – VC SPAC market of ASEAN. Full of hot air.

Financials – hah.vn, tcm.vn,

HAH VN: sets, in 2024, revenue of more than VND3,502 bn (+32% YoY) and PAT of VND344 bn (-11% YoY). Also, SSIAM and SSI are the investors leading the deal for HAH to successfully issue VND500 bn of private convertible bonds.

TCM VN: recorded, in January, revenue of more than $14.3 mn (more than VND353 bn) and PAT of $977,000 (about VND24 bn) (+43% and +62% respectively YoY). This is also TCM’s highest profit level in the past 9 months, since May 2023.

Country News

Vietnam’s stock market can attract US$25 bn from foreign investors by 2030 if it is upgraded from Frontier to Emerging, according to the World Bank.

In February, total import and export turnover of goods was estimated at $48.54 bn (-25.8% MoM and -1.8% YoY). For 2M2024, the total import and export turnover of goods is estimated at $113.96 bn (+18.6% YoY), of which exports increased by 19.2%; Imports increased by 18%. The trade balance of goods had a surplus of $4.72 bn.

The consumer price index (CPI) in February 2024 increased by 1.04% MoM and core inflation increased by 0.49% MoM. On average, for 2M2024, CPI increased by 3.67% YoY; Core inflation increased by 2.84% YoY.

Total state budget revenue in February 2024 is estimated to reach VND132.7 tn. For 2M2024, total state budget revenue reached VND399.4 tn (+10.4% YoY). Total state budget expenditure in February 2024 is estimated to reach VND117.8 tn; For 2M2024, total state budget expenditure is estimated to reach VND260.7 tn (+7.7% YoY).

Vietnam has attracted more than US$4.29 bn in foreign direct investment in the first two months of 2024, up 38.6% year-on-year, according to the Foreign Trade Agency. During the period, 405 new projects with total registered capital of US$3.6 bn were granted investment certificates, up 55.2% in volume and doubling the value recorded in the same time last year.

Vietnam’s seaports handled nearly 112 mn tonnes of cargo in the first two months of 2024, a year-on-year increase of 8%, statistics from the Vietnam Maritime Administration revealed. Export cargo reached 28.68 mn tonnes, up nearly 8% year-on-year, and import cargo hit 33.884 mn tonnes, up 16%.

As of February 20th, 2024, the total newly registered capital, adjustments and capital contribution, share purchase, capital contribution purchase (GVMCP) of foreign investors reached more than $4.29 bn (+38.6% YoY). Specifically, there were 405 new projects granted investment registration certificates (+55.2% YoY), the total registered capital reached nearly $3.6 bn.

Indonesia’s decision to increase rice imports by an additional 1.6 mn tons this year will give Vietnamese rice exporters an opportunity to step up outbound sales.

Over 4,800 containers have been left unclaimed for more than 90 days at Ho Chi Minh City sea ports, causing difficulties for logistics activities. Many companies imported their goods in excess before the seven-day Lunar New Year holiday which began Feb. 8., causing a surge in the number of containers in January.

Export turnover in January 2024 is estimated to reach US$33.57 bn, up 6.7% from a month earlier and compared to the same period last year, January export turnover soared by 42%, according to the Ministry of Industry and Trade (MoIT).

The data showed a fall in Vietnam’s auto imports compared to the corresponding period in 2023. In the year to February 15, imports of CBU autos had dropped by 11,520 units, or 51.6%. In terms of value, the decline had amounted to US$255.5 mn, or 54%, year-on-year.

Samsung’s four factories in Vietnam contributed 33% to the South Korean tech giant’s $11.8 bn profit in 2023.

The number of domestically assembled vehicles sold was 9,783, down 59%, while that of imported completely built units (CBUs) also decreased by 36% compared to the previous month, reaching 9,460.

In January 2024, Vietnam’s seafood exports reached nearly $750 mn (+64% YoY). In particular, the most breakthrough growth was in China and Hong Kong, which reached of more than $118 mn (3 times higher YoY). Exports to the US reached $111 mn (+63% YoY); to Japan increased by 43%; to Europe increased by 34%.

Vietnam’s shrimp exports are forecast to rebound and rise by 10-15% year-on-year, with revenue reaching US$4 bn, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The northern province of Quang Ninh attracted eight foreign direct investment (FDI) projects with registered capital totaling 478 mn USD in January.

The value of Vietnam’s fruit exports in January reached US$510 mn, up 24.9% compared to December 2023 and 112.1% against January 2023, according to the Ministry of Agriculture and Rural Development (MARD).