Week 12/12 – 16/12

hax.vn, vhc.vn, hah.vn, fcn.vn, nvl.vn, tvb.vn, kdc.vn, kdc.vn, kido.vn

Corporate

FCN: FECON secured VND400b contract in Haiphong seaport (Baolaodong)

HAH VN: estimated, in 2022, to reach VND3,145 bn in revenue (+61% YoY), exceeding 32% of the year plan. Net profit is estimated at VND835 bn (+87% YoY), completing 152% of the year plan. For Q4, the revenue is estimated at VND785 bn and PAT of VND177 bn (+17% and +13%, respectively YoY).

HAX VN: approved the capital contribution to Mitaco to expand the company’s business field. HAX’s maximum investment capital in Mitaco is VND100 bn, equivalent to 60% of the total share capital.

Comment: This is a car repair biz. Makes sense, can’t think of any regional comps off the top of my head.

KDC: KIDO wants to buy back 10m KDC shares to stabilize the price (Vietnambiz)

Comment: Can be viewed either positively, or the company is using it’s sister co to prop up the shares that the owners overleveraged on?

NVL: Novaland completed early redemption of VND200b of bonds (Vietnambiz)

Comment: Setting the precedent on how not to run a real estate company in Vietnam. It’ll be interesting to see which players, other than Vinhome come out stronger in the next 1-2 years.

VHC VN: recorded, in November 2022, export revenue of VND893 bn (-10% YoY). In which, revenue of pangasius – VHC’s main source of income recorded VND480 bn (-22% YoY).

TVB: Chairman charged with stock market manipulation (CafeF)

Comment: Another one bites the dust.

Country

1. In November, Vietnam’s import and export of goods reached $57.3 bn (-1.7% MoM). In which, export reached more than $29 bn (-4.4% MoM), import reached $28.3 bn (+1.3% MoM). However, in 11M22, the country’s import and export reached $673.7 bn (+11.8% YoY).  In which, export reached $342 bn (+13.4% YoY), import reached $331.5 bn (+10% YoY). In November, the country had a trade surplus of $742 mn, bringing the trade surplus for 11M22 to now reach $10.7 bn.
2. HCMC plans to obtain revenue of VND470,000 bn in 2023 (+21% from this year), according to a resolution on the state budget collection estimate and HCMC’s expenditure next year.
3. Steel sales fell to their lowest level in the last two years in October, mainly due to the slowdown in the real estate market and public spending.
4. In November, the Vietnam’s seafood export has reached $10.17 bn, exceeding year plan of $10 bn. By the end of year, Vietnam’s seafood exports will reach the goal of $11 bn (+25% YoY). Particularly, shrimp also surpassed the $4 bn mark for the first time, becoming the number one item in Vietnam’s seafood exports when accounting for 39% of the total export value of 11M22. Pangasius is second with a turnover of $2.3 bn (accounting for 22.4%).
5. About 9 tn VND (382 mn USD) of public investment capital from foreign sources has been disbursed in the first 11 months this year, accounting for only 26% of the allocated capital.
6. China has revised its regulations on agricultural imports, making it harder to sell the products to its market, the Plant Protection Department said.
7. VanEck Vietnam ETF (VNM US) announced to change the index-tracking benchmark from “MVIS Vietnam Index” to “MarketVector Vietnam Local Index”, effective from March 17, 2023.*
   1. MarketVector Vietnam Local Index (MVVNML) covers the largest and most liquid local Vietnamese companies. The index is reviewed on a quarterly basis, float market capitalisation weighted, and the maximum component weight is 8%. As of November 30, 2022, the Vietnam Index included 47 securities of companies with a market capitalization range of between approximately $118 million and $15.6 billion and a weighted average market capitalization of $4.84 billion.
   2. VNM US currently has USD411m AUM and is allocating mostly for Asia Pacific including Vietnam (73.6%)*, Taiwan (12.65%), South Korea (7.59%), Japan (4.34%), Malaysia (0.35%) and Others (1.47%). Accordingly, VNM US will delete other countries and increase the weight for Vietnam, potentially up to 100%.
   3. VNM US is the 4th largest ETFs tracking Vietnam in terms of total assets*, after DCVFMVN Diamond ETF (Local), Fubon FTSE Vietnam ETF (Taiwan), and iShares MSCI Frontier and Select (US). YTD the Four attracted good inflows with net value of USD940m.
   4. MVVNML: https://www.marketvector.com/indices/country/marketvector-vietnam-local/weightings
   5. VanEck: https://www.sec.gov/Archives/edgar/data/1137360/000113736022001187/vaneckvnmsupplementtosumma.htm