Week 19/09- 23/09

BAF VN:

has built 4 more hi-tech pig farms, expected to go into operation in 4Q2023. This business is expected to supply more than 1.5 mn pig heads in 2023 and open 1,100 meat sales points.

Comment: The business model is to grow pigs, and have their own sales point. Think of it as a mini CP Group.

DIG VN:

presents a plan to offer up to 100 mn shares at the price of VND15,000/share. In addition, DIG plans to adjust the investment plan of the Long Tan Tourist Urban Area project. Specifically, the company wants to increase nearly VND2,846 bn of investment costs for the project, increasing up to VND15.7 tn of total investment capital.

FMC VN:

in 1H22, Vietnam’s shrimp export turnover is at US$2.3 bn (+31% YoY). In 2H22, the world witnessed many fluctuations, affecting exports in general and the shrimp industry in particular. FMC sets a profit target of VND500 bn in 2025, oriented to export to the Japanese market.

Comment: Can the japanese still afford this after the currency devaluation?

FPT VN:

announced its business results for 8M22 with revenue of VND27,060 bn (+24%). PBT was VND4,951 bn (+23.6%). Meanwhile, the parent company’s shareholder profit reached VND3,409 bn (+30%) and achieved 64% and 65% of revenue and profit targets, respectively.

Comment: And voila, keeps growing and growing and growing. Why? Cheapest IT to outsource to in the region. And the Indian players aren’t coming in yet.

GVR VN

On Sep 16, BoD estimated its 9M revenue of VND18.4trl (+2% YoY and completing 62% FY plan) and profit of VND4.4trl (+4% YoY and fulfilling 83% FY target).

HDB VN:

will pay stock dividends for FY21 at 25%, equivalent to over 503mn shares with record date on Sep 28. The bank’s charter capital will increase from VND20,273 bn to VND25,303 bn.

MBB VN:

approved the plan to buy MB Securities (MBS VN) right issues with total amount of 47.2 mn shares, equivalent to 79% stake.

Comment: If you’ve been tracking this bank for years, they have all the necessary assets to perform, and it’s just been up to the CEO to execute this well.

PC1 VN: plans to issue more than 35.2 mn shares for 15% stock dividend. Charter capital is expected to increase to VN2,704 bn.

Comment: At one point the Vietnamese companies are going to have to stop with the stock dividend/dilutions which are just used to bolster their equity to lever up. As long as things are growing faster than the dilution, fine…but it will slow down at one point.

PNJ VN: announced business results in August 2022 with revenue of VND2,328 bn (+13 times YoY). PAT reached VND79 bn. For 8M22, PNJ’s net revenue reached VND23,049 bn (+87.6% YoY). PAT reached VND1,246 bn (nearly double YoY). PNJ has fulfilled 94.4% of the annual profit plan.

Comment: Just look at this! *Proceed to smash head against the wall* when I first met PNJ years ago, the Chairman – or husband of the current Chairwoman was under investigation for funny business…

TCB VN: Moody’s has upgraded Techcombank’s Long-term Counterparty Risk Rating from Ba2 to Ba1 and its long-term deposit rating from Ba3 to Ba2, with a “Stable” outlook. Moody’s also upgraded the Bank’s Baseline Credit Assessment (BCA) rating from Ba3 to Ba2.

Comment: A continuing trend for all the decent banks in VN.

VCI VN

Today, 100.5mn VCI shares which were previously issued as 2021 stock dividend, are ready for trading.

Comment: Combined with the market action and these new shares the share price went woooooo (down)

VGC VN:

The signing ceremony of sub-lease of land and infrastructure between VGC and Geleximco Group to build Geleximco car manufacturing and assembling factory in Tien Hai industrial park. The project has a scale of nearly 50 hectares, with a total investment of US$800 mn.

Comment: Locals knew this deal was coming months ago…and now you’ll understand why I keep saying that Amata Vietnam is nowhere compared to the local and Singaporean IE players in VN.

VHC VN

Upbeat 1H22 results. In 2Q, VHC achieved net sales of VND4.2b (+80% YoY) and PAT of VND802b (+208% YoY), above market expectations. Aggregately, VHC posted upbeat growth in 1H22, with 81% YoY in sales (VND7.5t) and 244% YoY in PAT (VND1.4t), thanks to both 1) strong exports after Covid-19, and 2) surging selling price of fish fillets. Likely beating FY22 guidance regardless of potential deceleration in 2H. Given a very high growth base in 1H22, VHC’s growth statistics in 2H will likely see a deceleration as compared to 1H; However, compared to the same period last year, the growth will remain stellar. In 8M22, VHC achieved net sales of VND10t (+75% YoY), fulfilling c.77% of its full-year sales target.

Comment: Was always worried that at one point the US Trade department would cite VHC for unfair trade…but it never happened, and this company continues to grow from strength to strength.

VPB VN:

the bank will go ex-dividend on Sep 28, 2022. Accordingly, VPB will issue 2.23 bn shares at VND10,000/share to increase its charter capital to VND67 tn, which will be the highest in the bank sector.

Comment: Urgh….well why not, more “free shares” as the locals like to say. And 1. this will help for them to bring in the foreign partner and 2) to receive the right to assist one of the bad banks to recover and have a high credit growth quota.

News

1. Vietnam’s central bank aims to keep its credit growth cap at 14% for 2022, a deputy governor said, ruling out speculation the regulator will ease lending limits to boost the economy. Lending growth is more than 10% at present, higher than the same period in previous years, Pham Thanh Ha said at a forum in Hanoi on Sunday. Credit expansion was 13.6% for all of 2021 and 12.2% in 2020, he said.
2. A new government decree fixes minimum par value of corporate bonds for domestic private placements at VND100 mn ($4,274), up from just VND100,000. With domestically issued bonds, enterprises can only change their terms and conditions if these are approved by the issuer and at least 65% of bondholders.
3. Global semiconductor makers are betting on Vietnam as their next production destination with the country being considered ready for a move up in the value chain. The U.S.’s Synopsys, one of the world’s biggest chip design software companies, is set to invest in and shift its engineer training to Vietnam. It will train engineers and provide software licenses for a chip design center at the Saigon Hi-Tech Park.
4. In August, Vietnam exported nearly 219.3 thousand tons of rubber ($332.4 mn, +11.6% in volume and +4.2% in value MoM; +16% in volume and +7% in value YoY). For 8M22, rubber exports reached 1.2 mn tons ($2 bn, +8,7% in volume and 8.8% in value YoY).
5. Fertilizer exports in August reached 118 thousand tons ($70.5 mn, +5% in volume but -6% in value MoM). For 8M22, fertilizer exports reached 1.2 mn tons with a turnover of nearly $792 mn (+41% in volume and nearly 2.7 times in turnover YoY).
6. Tuna exports in August 2022 increased by 86% YoY, reaching nearly $92 mn. For 8M22, Vietnam’s tuna exports earned nearly $730 mn (+55% YoY). In which, the export proportion of fresh, frozen and dried tuna products increased twice as strong and as much as processed tuna products.
7. CSOP Fund Management Company from Hong Kong has just announced the launch of the CSOP FTSE Vietnam 30 ETF. The fund replicates basket of FTSE Vietnam 30 including 30 large-cap stocks such as VIC, MSN, VHM, NVL, HPG. The ETF are expected to be listed on Hong Kong Stock Exchange.
8. For almost 9M22, the export value reached $265.34 bn (+17.8% YoY); imports reached $260.7 bn (+13.2% YoY). Total import-export turnover in the period was over $526 bn (+15.4%). In the first half of September, the total import and export turnover of Vietnam reached $26.34 bn (-26% MoM).
9. For 8M22, Vietnam’s pangasius exports reached over $1.8 bn (+81% YoY). In which, pangasius exports to the US market accounted for 23% with more than $421 mn (+87%). Particularly in August, pangasius exports to the US reached $33 mn (+45% YoY).
10. Foreign direct investment (FDI) into Vietnam in the 8M22 reached nearly $16.8 bn (87.7% YoY). In which, inflows FDI capital from the 5 largest Asian economies (South Korea, Japan, China, India, and Indonesia) poured into Vietnam approx. $6.4 bn (equivalent to 38% of the total registered capital in 8M22).
11. ADB maintains its 6.5% growth forecast for Vietnam this year despite an expected slowdown in Asia due to global geopolitical tensions.
12. According to the Industrial Parks Development Plan in Vietnam, there are currently about 563 industrial parks (IPs) with a total covered area of about 210,900 hectares. However, some IPs have not yet operated. The occupancy rate of industrial zones in Vietnam currently reaches 70.9%, equivalent to the end of 2020.
13. For 8M22, Vietnam’s rice exports reached nearly 4.8 mn tons, bringing in a turnover of nearly $2.4 bn (+21% in volume and +10% in value YoY). The average export price reached nearly $500 /ton (-$50/ton YoY). The remaining 4 months are expected to export 1.5 – 1.7 mn tons, likely to meet and exceed the whole year plan (6.3 – 6.5 mn tons).
14. Vietnam’s central bank has increased a series of regulatory interest rates, including deposit, rediscount and refunding rates, with effect from today, September 23. The ceiling of deposit interest rates, with terms from 1 month to below 6 months, would be increased by 1% point to 5% a year. For demand deposit and deposit with a term below 1 month, the interest rate ceiling is raised from 0.2% to 0.5% a year. Refunding and rediscount rates both see an increase of 1 %age point to 5% a year and 3.5% a year, respectively.
15. In August, the country’s iron and steel exports of all kinds were nearly 513,736 tons with a turnover of nearly $457.6 mn (-16.3% in volume and -29% in turnover MoM). For 8M22, Vietnam exported more than 5.9 mn tons of iron and steel with a turnover of $6.08 bn (-30.3% in volume and down 13.4% in turnover YoY).