Week 04/03 – 08/03

Company

cii.vn, dgw.vn, fpt.vn, gvr.vn, hsg.vn, kbc.vn, nab.vn, nvl.vn, vcg.vn, vtp.vn

CII VN: registered to buy 5 mn shares to increase ownership at NBB. Expected transaction implementation time is from March 7th to April 5th, 2024.

DGW VN: approved a short-term loan plan at TCB, maximum term of 4 months, total loan of VND800 bn and no collateral.

Comment: This is only company in VN where the owners actually own and manage the company and do not do unnecessary equity issuances.

FPT VN: announced the purchase of 100% capital of Japan’s Next Advanced Communications (NAC) technology services company on March 1st. This is also FPT’s first M&A deal in the Japanese market.

Comment: Say whaaaaaaaaaaaaaaaaaaaaat. Oh this company is just going to continue smacking those like me that don’t understand how it continues to do so well.

GVR VN: is an investor in Hiep Thanh industrial park – phase 1 of with total investment of nearly VND2,400 bn.

HSG VN: plans to issue 5 mn ESOP shares at a price of VND10,000/share to leaders, administrators, executives, managers, and other key personnel of the enterprise.

KBC VN: sets, in 2024, revenue target of VND9,000 bn and PAT target of VND4,000 bn (+53% and +80% respectively YoY). Also, KBC plans to cancel the cash dividend payment in 2022 as prioritized to repurchase VND3,900 bn in outstanding bond principal and VND162 bn in bond interest.

Comment: Finally a little bit of capital allocation sense from this company

NAB VN: March 8th, 2024 is the first trading day on HOSE for NAB shares with reference price of VND15,900 /share.

Comment: A little birdy said that this is a bank to watch.

NVL VN: requested to delay payment of interest on 4 batches of bonds on February 28^th. The total expected interest payable on these 4 lots is nearly VND98 bn. Payment of interest is expected to be made on March 8^th.

Comment: Bankrupt bankrupt bankrupt

VCG VN: is the project investor of Dong Anh industrial park project in Hanoi with a total investment capital of more than VND6,300 bn.

VTP VN: HOSE announced allowing the listing of nearly 122 mn shares of VTP, corresponding to a charter capital of VND1,218 bn. The effective date of listing is December 21st, 2023 and the official date of being allowed to trade on HOSE is March 12th ,2024.

Comment: Frustrates me incredibly….had it, waited years for this damn listing on HOSE – delayed delayed delayed, bought more during the crash, IR ignored us for years, dumped it, and a month later, it’s announced – share price 2-3x.

Financials/Forecasts

bsr.vn, bwg.vn, dcm.vn, dgc.vn, fts.vn, hpb.vn, mbb.vn, nt2.vn, vcg.vn, vos.vn

• BSR VN: estimated, in 2M2024, revenue of VND23,426 bn, budget contribution is about VND2,563 bn. In 2024, BSR targets total revenue of VND95,274 bn and PAT of VND1,148 bn.
• BWE VN: sets a plan for 2024 with a revenue of VND4,100 bn (+3% YoY) and PAT of VND700 bn (+16% YoY). In January, BWE achieved total revenue of VND281 bn and PAT of more than VND65 bn (+24% and +17% respectively YoY), completing nearly 7% of revenue target and 9% of annual profit target. Also, BWE plans to issue shares to pay stock dividends in 2023 at a rate of 14%.
• DCM VN: sets, in 2024, revenue target of VND11,878 bn and PAT target of VND794.8 bn. For 2M2024, DCM estimated revenue of VND1,405 bn, achieving 12% of the year’s revenue plan.
• DGC VN: sets, in 2024, a total consolidated revenue target of VND10,202 bn (+4.6% YoY) and PAT of VND3,100 bn (-4.4% YoY). Dividends in 2024 are expected to maintain 30%. Also, DGC is expected to build a plastic soda complex in Nghi Son (phase 1) costing VND500 bn, starting in June. In addition, DGC also wants to merge with Phosphorus Joint Stock Company Vietnam Apatite (PAT) joined the group.
• FTS VN: targets revenue and PBT in 2024 at VND845 bn and VND420 bn, respectively (-8% and -18%, respectively YoY). FTS plans to pay cash dividend 2023 at the rate of 5%. Also, FTS plans to issue 85.8 mn shares to increase charter capital at the issuance ratio of 40%.
• HPG VN: signed a memorandum of on studying major projects of Bai Goc Port, Hoa Tam Industrial Park and iron and steel complex in Phu Yen with total estimated investment of VND120,000 bn (about $5 bn).
• MBB VN: sets in 2024 revenue of VND28.8 tn (+16% YoY) and expects to complete the merger with Oceanbank in 2024. Also, State Capital Investment Corporation (SCIC) will exercise the right to buy 30 mn MBB shares. The expected transaction time is from March 8th to April 6th.
• NT2 VN: approved the advance payment of dividends for the first phase of 2023 in cash at the rate of 7%. The ex-dividend date is March 14th, 2024.
• VCG VN: During January 30th – February 27th, the Dragon Capital fund group net sold a total of nearly 17.5 mn VCG shares, lowering its ownership ratio to 5.92%.
• VOS VN: sets a plan for 2024 with a total revenue of VND2,440 bn (-28% YoY) and PBT of VND323 bn (+62% YoY).

Country

• In 2024, Vietnam’s rubber industry sets an export target of $3.3 – $3.5 bn. In February, rubber exports were estimated at about 110,000 tons, worth $161 mn (-47.7% in volume and -45.7% in value MoM and -16 1% in volume and -12.9% in value YoY).
• In February, the value of corporate bonds repurchased before maturity only reached VND2,056 bn (-68% YoY). In the remaining 10M2024, it is estimated that there will be nearly VND256 tn of bonds maturity, with the majority being real estate bonds, worth more than VND98 tn (equivalent to 38.4% of total value).
• Vietnam attracted $4.29 bn in foreign direct investment (FDI) in 2M2024 (+38.6% YoY). Notably, several large-scale projects were granted investment registration certificates in February, such as Trina Solar Cell project in Thai Nguyen province and the Gokin Solar Hai Ha Vietnam project in Quang Ninh.
• The foreign direct investment (FDI) sector maintained its role as an export pillar of Vietnam’s economy with revenue of 43.2 bn USD in the first two months of this year, up 14.7%, and accounting for 72.8% of the country’s total export value.
• South Korean conglomerate Samsung has plans to invest an additional US$1 bn annually in Vietnam. In 2023, Samsung invested an additional US$1.2 bn in Vietnam, bringing the total so far to US$22.4 bn. The company aims to sustain this level of investment, pledging to invest an annual US$1 bn into the Vietnamese economy.
• In 2M2024, Vietnam’s coffee exports are estimated to reach 438,000 tons, worth $1.38 bn (+27.9% in volume and +85% in value YoY). Previously, in 2023, Vietnam’s coffee exports decreased by 8.7% in volume, but turnover increased by 4.6% to a record of $4.24 bn.
• Seafood exports in February were estimated at $564 mn (-8% YoY). For 2M2024, seafood exports reached over $1.3 bn (+23% YoY).
• The prices of paddy and rice bought for exports have plunged by 10-12% in Vietnam since the last harvest amid a surge in supply and cooling global demand. Paddy prices in the Mekong Delta have fallen to VND7,200-8,000 (US$0.29-0.32) per kilogram.
• Vietnam has recorded a trade surplus of 4.72 bn USD in the first two months of 2024, higher than the figure of 3.5 bn USD reported in the same period last year, according to the General Statistics Office (GSO). In the period, the country’s total import-export turnover is estimated at 113.96 bn USD, up 18.6% year-on-year.
• Business-to-consumer sales in the e-commerce sector this year are projected to grow by almost 40% year-on-year to VND650 tn (US$28.1 bn), according to a report by the Ministry of Industry and Trade (MoIT)