Week 20/02 – 24/02

acb.vn, baf.vn, bcg.vn, bwe.vn, dgw.vn, dxg.vn, hvn.vn, mwg.vn, nvl.vn, pnj.vn, vhm.vn, vic.vn

Corporate

ACB VN: Dragon Capital bought a total of 4 mn ACB shares through member funds, bringing the total number of shares held to 272.3 mn shares, equivalent to the ownership rate at ACB of 8.06%.

BAF VN: approved the International Finance Corporation (IFC) to participate in ordering convertible bonds and plain bonds issued by the BAF. The total value of issued bonds is VND900 bn, of which VND600 bn are convertible bonds, the rest are plain bonds.

BCG VN: wants to raise interest rates from 10% to 14% pa this year for 2 bonds with codes EBCCH124002 and EBCCH124003. After that, the next interest periods will apply the same fixed interest rate of 10%/year.

Comment: No company wants to pay more interest, the bond market is still messed up.

BWE VN: recorded, in January, revenue of VND227 bn (-42% YoY) and PAT of VND59 bn (-25% YoY).

DIG VN: will postpone the time of offering 100 mn shares to existing shareholders at the price of VND15,000/share to 2Q2023 and 3Q2023.

DGW VN: approved the target of revenue and PAT in 2023 of VND25,109 bn and VND787 bn, respectively (+14% and +15%, respectively YoY).

Comment: And that’s after telling the market that they expect 1Q23 to be -40%

DXG VN: decided to transfer all shares currently owned in Saigon Riverview Joint Stock Company to Hoi An Invest Joint Stock Company. The number of shares expected to be transferred is more than 16.6 mn shares, priced at VND10,000/ share. The deal value is about VND166 bn.

HVN VN: Vietnam Airlines’ fuel distribution subsidiary Skypec made estimated PBT of VND180 bn (US$7.6 mn) last year, nearly 80% up from 2021.

Comment: But the airline itself should be delisted and go into rehab/bankruptcy.

MWG VN: announced its business plan for 2023 with net revenue of VND135,000 – VND150,000 bn. Expected net profit is VND4,200 bn – VND4,700 bn.

Comment: Management has clearly stated that their base case is a return to normal growth by 4Q23.

NVL VN: Bui Thanh Nhon, chairman of property developer Novaland, on behalf of other businesses in the sector, has proposed that banks allow their payments due be extended for another two or three years.

NVL VN: adds collateral for a loan of VND1,600 bn at MSB. The additional guarantor is Delta Valley – Binh Thuan Co., Ltd.

NVL VN: announced unusual information about late payment of interest and principal of two bond lots NVLH2224005 and NVLH2123009 with a total amount of nearly VND1,080 bn.

Comment: They defaulted. Bondholders voted against a restructuring.

PNJ VN: recorded, in January, VND4,129 bn in net revenue and VND302 bn in PAT (+19% and +12% respectively YoY).

Comment: I am constantly confounded by this company’s ability to grow.

VHM VN: announced the transfer of all shares in Lang Van Investment and Development Joint Stock Company to the parent company, Vingroup Corporation.

Comment: I still think Vin group should go belly up given their stupidity with the auto & the retail business units hurting the decent Vinhomes business.

VIC VN: On February 16th, emerging electric car company VinFast said it had been granted one of the necessary environmental permits to start building a $4 bn factory in the US

Comment: 0, or less than 0, that’s the value I put on this company.

Country

• Vietnam’s inflation has been rising non-stop since September but may have found its peak last month as consumer demand weakens. Starting from a low base of 1.42% in February last year, the Consumer Price Index (CPI) rose 4.89% last month.
• Last year, rising demand for drugs, especially antibiotic products and products for disease prevention and strengthening immune systems after the COVID-19 pandemic, contributed to the success of several pharmaceutical enterprises.
• Thailand’s Central Retail Corporation has announced it will double the number of its Vietnam stores with its largest ever local investment of 50 bn baht (US$1.45 bn). The chain’s number of stores will jump to over 600 in 57 of 63 cities and provinces with the new investment over the next five years.
• In January 2023, pangasius exports continued to decrease deeply by 61% YoY and decreased by 44% MoM, reaching only $83.6 mn. In particular, export value to the US only reached $9.84 mn (-40% MoM and -81% YoY).
• At least 95% of the public investment budget, or VND676 tn ($28.47 bn), must be disbursed this year to speed up growth. The National Assembly has approved the spending of nearly VND711.7 tn on public projects this year.
• Gasoline prices dropped after two hikes in a row while diesel fell to this year’s new low. RON95 gasoline was sold at VND23,440 ($0.99) per liter, -1.35% from a week ago. Biofuel E5 RON92’s price – 1.23% to VND22,540. Diesel – 3.2% to VND28,860, its second decline in a row.
• Vietnam’s tuna exports in January 2023 continued to decline sharply following the trend of the fourth quarter of 2022. Accordingly, tuna export turnover in January was just over $50 mn (-43% YoY).
• Shrimp exports plummeted by 55% year-on-year in January to US$141 mn due to weaker global demand and stronger competition from other countries. Exports to the U.S. were worth $23 mn, down 65%, the sharpest decline among all markets.
• The State Bank of Vietnam (SBV) has expected credit growth to hit 14-15% this year, leaving a possibility that it might adjust the orientation to suit the actual business situation and developments.
• The Ministry of Transport has announced it would disburse nearly VND6.3 tn of public investment capital for the North-South Expressway project this month.
• The Ministry of Construction has proposed a credit package of VND110 tn, which has been approved by the Prime Minister for inclusion in the upcoming resolution for social and worker housing.
• In February, 2023, the total export and import turnover of the country reached more than $72 bn; in which total export turnover reached $37 bn; import turnover reached $35.32 bn. Thus, the trade balance was in surplus with a trade surplus of $1.68 bn.
• In 2M2023, passengers passing through Vietnamese airports reached more than 19.7 mn (+91% YoY); In which, domestic tourists reached 14.8 mn (+48% YoY); International visitors reached more than 4.7 mn arrivals (+2,000% YoY).