Week 06/03 – 10/03

Country

• According to the latest report from the Vietnam Electricity Group (EVN), currently, coal-fired thermal power still accounts for over 42 %. In March, coal-fired thermal power plants and gas turbines will be mobilized at a high level to retain water in hydropower reservoirs.
• There are about 46 enterprises on the list of late payment obligations of interest or principal of corporate bonds according to the announcement of HNX. It is estimated that the total outstanding debt of corporate bonds of these enterprises is about VND121,100 bn, accounting for nearly 12% of the total outstanding debt of corporate bonds in the whole market.
• Ho Chi Minh City leads the whole country in terms of new projects (39.5 %), number of adjusted projects (21.8 %), and capital contribution and share purchases (69.3 %).
• A new decree on corporate bonds allows issuers to extend payments by a maximum two years if holders agree. If not, issuers need to negotiate to ensure their rights are fulfilled or go back to the original payment plan.
• The total value of corporate bonds maturing in March is USD747mn with the real estate sector accounting for USD324mn (43% of the total), per the VBMA’s latest report. Since the beginning of the year, the total value of redeemed bonds before maturity was USD647mn (+43% YoY).
• The total FDI in the 2M2023 stood at $3.1 bn, equivalent to only 62 % YoY.
• An estimated VND 362.3 tn (nearly USD 15.3) was collected for the state budget in the first two months of 2023. The total is equivalent to 22.4% of the year’s target and up 10.6% from a year earlier.
• State budget collection from export-import activities in the first two months stood at VND 56.33 tn (USD 2.37 bn), or 13.3% of the estimate, down 19.4% YoY.
• For 2M2023, the number of real estate enterprises that completed dissolution procedures was 235, and the number of real estate enterprises temporarily suspended business was 1,660, both recorded an increase as the highest YoY.
• Vietnam’s market is expected to be a beneficiary from ETF inflows in the upcoming weeks as VanEck ETF is adding USD97mn (from changing its tracking to MVIS Vietnam Local Index) and Fubon ETF is expected to receive approval for an additional USD160mn raise.
• Fubon FTSE Vietnam ETF – a fund from Taiwan (China) has just announced that it has been approved by the Financial Supervisory and Regulatory Commission for the 5th time with a capital of TWD5 bn (approximately $160 mn). Thus, Fubon ETF is likely to soon pour an additional VND4,000 bn to buy Vietnamese stocks in the near future.
• The Chinese government has decided to add Vietnam to the list of countries to which its nationals can go on outbound tours with effect from March 15th.
• The Government has asked the finance and industry ministries to consider reducing car registration fee and extend the payment schedule for special consumption taxes on domestically assembled vehicles.

Corporate

bwe.vn, dgc.vn, kbc.vn, msn.vn, mwg.vn, nt2.vn, pow.vn, ree.vn, tdm.vn, vic.vn, vhm.vn

BWE VN: targets, in 2023, revenue of VND3,970 bn, PAT of at least VND720 bn (-14% and -3% respectively YoY). The company expects a dividend rate of at least 13% of charter capital for 2023.

DGC VN: sets in 2023, a plan of VND10,875 bn in total revenue, VND3,000 bn in PAT (-25% and -50% respectively YoY). The dividend payment in 2023 is expected to be 30%, equivalent to 2022.

KBC VN: will buy back bonds with code KBCH2130002 on April 5, 2023, nearly two months earlier than planned with total issue value of VND1,000 bn. In addition, KBC also approved to lend a maximum loan of VND200 bn to its subsidiary, Trang Cat Urban Development Company Limited.

Comment: Buying back it’s bonds at a massive discount…

MSN VN: completed the payment of VND3,000 bn of bonds on time. These are bonds issued in 2020 and matured on 09/03/2023.

Comment: They’re going to lead the market in corporate bond issuances, will eventually help masan continuously get a lower cost of capital versus peers. Now if only their transactions were slightly less dodgy…

MWG VN: temporarily suspends cooperation with the F88 pawn chain.

Comment: This just after f88 has raised capital from investors….

NT2 VN: corrected a few financial indicators announced in the financial statements of 4Q2022, thereby helping the company’s profits to increase dramatically more than VND154 bn.

Comment: Doesn’t this just breed confidence in investors? “Oh we had to fix some figures in our accounts, and yes we’re an SOE Power co, but don’t worry, you can trust us…”:

POW VN The company released prelim 2M 2023 revenue +30% YoY and sales volume +24% YoY. Gas-fired power portfolio delivered volume growth of +30% YoY, while coal-fired and hydro portfolio achieved volume growth of +12% YoY and +10% YoY, respectively. CGM price set a 10-year record high of VND1,928/kWh (+32% MoM) in February. Results are broadly in-line with our forecasts.

REE VN: proposed to shareholders the dividend rate in 2022 at 25% (equivalent to 2021), of which 10% is cash with total of VND356.4 bn and 15% stock dividend with total issue of 53.3 mn shares.

Comment: Another stock dividend…

TDM VN: sets a target of total revenue in 2023 to reach VND642.2 bn (+27% YoY). PAT is estimated at VND298.4 bn (+35% YoY).

Comment: Could be a decent pure water play for parts of VN

VIC VN: Mr. Pham Nhat Vuong decided to establish GSM Smart and Green Mobility Joint Stock Company, specializing in providing car rental services, electric motorbikes and services with charter capital of VND3,000 bn.

Comment: Oh jesus, he’s just trying he’s best to shift money around….

VNM VN: and Japan Sojitz Group build Vina beef Tam Dao farm complex with total investment of $500 mn.

VHM VN: announced the capital contribution to establish two subsidiaries in the field of real estate business owned 99.9% capital. Specifically, Truong Loc Real Estate Investment and Development Co., Ltd., (total charter capital of VND4,425 bn) and Phat Dat Real Estate Development and Investment Co., Ltd., (charter capital of VND7,008 bn), in which both located in Hung Yen province.

Comment: They’re still the juggernaut for RE in VN.