Week 18/03 – 22/03

Company ctr.vn. gmd.vn, hcm.vn, kbc.vn, mwg.vn, pdr.vn, pnj.vn, tcb.vn, tcm.vn, vic.vn,

CTR VN: estimated, in February, revenue of VND834 bn (+4% YoY) and PBT of VND44.6 bn (-4% YoY). For 2M2024, CTR is estimated to reach VND1,703 bn in revenue and VND94.3 bn in PBT (+9% and +6% respectively YoY), completing 13% of revenue plan and 14% of profit target.

Comment: I like the idea of this play. A lot. Do I know anything about the company? No…

GMD VN: signed a contract with a partner on March 15th to transfer all 99.98% shares owned at Nam Hai Port Joint Stock Company. Information about the transferee has not yet been disclosed.

Comment: Still the best export play in VN, it’s the best port operator, but there has been talks about a JV with a big carrier for years…

HCM VN: Dragon Capital Markets Limited has purchased more than 68.7 mn HCM shares, increasing its ownership to more than 226.8 mn shares (equivalent to 30.068% of capital). The transaction was carried out during on March 13th, 2024.

Comment: Another broker needing to recap.

KBC VN: plans to invest in an industrial park of nearly VND9,000 bn in Thai Nguyen.

MWG VN: plans to pay 2023 dividends in cash at a rate of 5% in 2024. Also, MWG proposes a plan to repurchase shares with a maximum budget of VND100 bn.

Comment: Small value for buy back, but at least there isn’t some ridiculous stock dividend.

PDR VN: submitted documents to SSC on a plan to issue 134 mn shares at VND10,000 /share to existing shareholders.

PNJ VN: recorded, in February, net revenue of VND4,649 bn and PAT of VND305 bn (+63% and +20% respectively YoY). For 2M2024, PNJ recorded a 22% YoY increase in net revenue to VND8,478 bn and a slight 1% YoY decrease in PAT to VND550 bn.

TCB VN: Moody’s Ratings has just announced to maintain the long-term bank deposit (LT) rating of the local currency (LC) and foreign currency (FC) of TCB at Ba3. Also, Moody’s raised TCB’s outlook from ‘negative’ to ‘stable’.

TCM VN: will take over the entire investment project of SY Vina Textile and Garment, through spending VND468 bn to receive transfer from partner E-land Asia.

VIC VN: will sell up to 100% of the charter capital in the Investment and Development Company Limited SDI. The transaction is expected to be carried out from March 2024 to theQ32024. SDI currently owns over 99% of the charter capital of Sado Trading Business Joint Stock Company – the major shareholder of VRE.

Comment: Some magical group of yahoos, appeared out of a bowl of pho soup and is going to buy VRE? That’s vietnam for you…

Financials: ceo.vn, gas.vn, qns.vn, ssi.vn, vhc.vn,

• CEO VN: sets, in 2024, revenue target of VND2,100 bn and PAT of VND150 bn (+46% and +24% respectively YoY).
• GAS VN: sets, in 2024, revenue target of VND70,176 bn and PAT of VND5,798 bn (-22% and -51%, respectively YoY).
• QNS VN: plans to pay cash dividends in a record profit year (2023) at a rate of 40%. This is the highest cash dividend payment in the past 10 years.
• REE VN: sets, in 2024, a revenue target of VND10,588 bn and PAT of VND2,409 bn (+23% and +10% respectively YoY). Also, REE plans to dividend for 2023 at a rate of 25%, including 10% in cash and 15% in stock.
• SSI VN: sets, in 2024, revenue target of VND8,112 bn and PBT of VND3,398 bn (+13% and +19%, respectively YoY).
• VHC VN: recorded, in February, revenue of VND801 bn (+6% YoY). For 2M2024, VHC recorded VND1,722 bn in revenue (+42% YoY).

Country

• Commercial banks have continued savings interest rate cuts, with BIDV taking the lead by reducing rates by 10 to 20 basis points across all tenors. For deposits ranging from one to two months, the interest rate has dropped from 1.9% to 1.7% per year. Similarly, the rate for deposits held for six to nine months has been decreased from 3.2% to 3.0% per year.
• Vietnam’s Communist Party Central Committee on Wednesday agreed to let President Vo Van Thuong be relieved from his position per his personal request. Thuong will leave his positions as president, member of the Politburo, member of the 13th Party Central Committee, and president of the defense and security council for the 2021-2026 term, per a decision announced at an extraordinary session of the committee.
• Vietnam’s major exports to Europe and the Middle East like garments, coffee and smartphones might decline due to worsening Red Sea shipping disruptions and rising freight hikes, experts warn.
• Vietnam’s automobile sales in February plummeted 50% year-on-year to 11,633 automobiles, the biggest drop in three years. The sales were even lower than the figure recorded in February 2021 – the time when the Covid-19 pandemic broke out as 13,585 vehicles were sold.
• The southern province of Binh Duong has planned to develop 10 more industrial parks (IP) in the 2023 – 2030 period. The depreciation of the Vietnamese dong against the dollar and high shipping costs due to the ongoing Red Sea tensions have increased costs for both exporters and importers. The U.S. dollar is currently at VND25,350-25,590, up 1.9% since the beginning of the year and 8% from half a year ago. Many importers are worried about the huge losses that come with the rising exchange rate
• This year, Binh Duong province plans to attract 130-140 investment projects to industrial parks (IP), securing 1.2-1.3 bn USD from foreign capital and 1.1-1.2 tn VND (about 48.535 mn USD) from domestic investors. The plan includes a total construction investment capital of 5.7 tn VND, with the provision of leasing or subleasing 100-150 hectares of land. The objective is to attract 15,000 workers and achieve a total revenue of 35-40 bn USD.
• Foreign money has been the main driving force behind large mergers and acquisitions this year. Last week U.S. investment firm Nebula Energy’s liquefied natural gas subsidiary AG&P LNG acquired a 49% stake in the Cai Mep LNG Terminal in Ba Ria-Vung Tau Province, according to its owner, energy firm Hai Linh Company. The terminal is valued at US$500 mn and expected to become operational in the third quarter this year.
• The average house price in Vietnam is 23.75 times the annual household income, up from last year’s 23.5. According to the Ministry of Construction, the house-price-to-income metric is used by many countries to assess the “reasonableness” of house prices. The ration has risen by a fifth since 2019. This means houses have become increasingly out of reach for Vietnamese in the past five years.