Week 03/10 – 07/10

Stocks

BCG VN

BCG approved to offer 266.73mn shares with the price of VND10,000/share at the ratio of 2:1 for existing shareholders via public offering. Expected time will be in 4Q22 after getting approval from SSC.

Comment: Not sure where the earnings have been coming from for this “investment co” but does look cheap pre this dilution…..another friggin’ equity dilution in VN

BSR VN

BoD estimated its 9M22 total revenue of VND125trl (surpassing FY target by 36%). For 3Q22, revenue is estimated at VND37.83trl (+114% YoY).

Comment: A refinery making great refinery profits just like the RoW

DXG VN:

approved the investment policy of the project of high-rise apartment complex combined with trade and service, the estimated scale is about 8.6 hectares in Di An city, expecting to supply the market with 3,400 units.

FMC VN: for 9M22 sales reached $182 mn (VND4,310 bn, +17.5% YoY) and fulfilled 79% of target. In September, sales reached $20.1 mn (VND476 bn), slighly decreased MoM and remained flat YoY.

LPB VN

230.82mn LPB shares, which were previously issued via public offering, will be ready for trading on Oct 10.

Comment: Equity dilution. Shares will be pressured…

MBB VN

today, 755.7mn MBB shares, which were previously issued as stock dividend, are ready for trading.

Comment: Another one whose shares will be pressured. But arguably one of the better quasi-private bank in VN.

MWG VN:

announced the approval of a transaction for Mobile World Joint Stock Company to borrow a loan with a maximum credit limit of VND5,000 bn with a term of 36 months.

Comment: We’re all wondering and waiting to see whether they can make BHX the success that they tout it to be.

NVL VN: approved a maximum syndicated loan of $40 mn from VietinBank Filiale Deutschland and Maybank; and borrow up to VND23 bn from VietinBank branch 1, Ho Chi Minh City. Previously on 26 Sep, BoD also approved a maximum loan of $10 mn from HSBC Singapore and VND350 bn from HSBC Vietnam.

NVL VN: Nova Consumer Group has passed a plan to acquire a controlling stake in Nova Beverages Production and Trading Co., Ltd., with the deal valued at nearly VND400 bn.

Comment: One of the weirdest share price movements amongst all the real estate players in VN

POW VN: approved to increase capital for PetroVietnam Power Renewable Energy Joint Stock Company (PV Power REC) from VND 60 bn to VND 270 bn.

Comment: This is inline with the governments Power development plan. Watch for more “renewables” to hit the VN grid over the next 5 years.

Nova Consumer: a subsidiary of NovaGroup, has registered to list its shares on HOSE under ticker NCG. With its charter capital of VND1.2 tn, Nova Consumer will trade some 120 million NCG shares on the HCMC bourse. In March, Nova Consumer launched its initial public offering at the price of VND44,000/share.

VJC VN: approved to issue 108.3 mn shares to pay dividend and a private placement of 54.1 mn individual shares. Vietjet’s charter capital is estimated to increase from the current VND5,416 bn to VND7,149 bn.

Comment: They had to raise capital, all the rumours saying that they were fine is rubbish.

News

• Coca-Cola Beverage Vietnam Co., Ltd. plans to start construction on a US$136m plant in the southern province of Long An,* news website reports, citing Coca-Cola Beverage Vietnam’s CEO Peeyush Sharma. Plant, which will be built on 19 hectares, to be the largest factory of Coca-Cola in Vietnam. (Bloomberg
• Despite a drop in garment and textile export orders in the third quarter and a possible continued decrease in the rest of the year, Vietnam will still achieve the full-year export target of US$44 bn.
• Vietnam will impose a temporary anti-dumping duty on table and chair imports from China this month. The temporary anti-dumping duty will be 21.4% for chairs and 35.3% for tables.
• Apple has added four new suppliers in Vietnam for the 2021 financial year, bringing the total to 25 out of its 190 suppliers worldwide. The most popular Apple suppliers in Vietnam include Foxconn and Luxshare and subsidiaries of Samsung, Intel and LG. The only supplier it excluded from the list was Foster Electric with factories in Binh Duong and Da Nang.
• Deposit interest rate has surged at various commercial banks, ranging from 6.5 %to 7.45% for 12-month term.
• Thailand’s Central Retail plans to more than double the number of its stores in Vietnam from the current 340 to 710 by 2026 to capitalize on a growing market. The main retail arm of Thai conglomerate Central Group will spend BHT30 bn ($790 mn) for the expansion, which it hopes will make it Vietnam’s biggest food and property retail platform.
• India, the world’s largest rice exporter, banned shipments of broken rice and slapped a 20% export tax on several rice varieties starting September 8, making rice prices in some markets rise, including Vietnam. After India’s move, Vietnam’s 5% and 25% broken rice prices soared by $30 to some $423-427/ ton and $25 to some $403-407/ ton, respectively, while 100% broken rice stopped trading.
• In September, Vietnam exported about 210,000 tons of rubber products, worth $305 mn (-4.2% in volume and -8.1% in value MoM, but +16% in volume and +2% in value YoY). The average export price in September reached $1,455/ ton (-4% MoM and -12.1% YoY). For 9M22, rubber exports reached about 1.41 mn tons, worth $2.32 bn (+9.7% in volume and +7.8% in value YoY).
• State Bank of Vietnam grants additional increases of credit quotas by 0.9 to 11.5 percentage points for Vietcombank (VCB VN), HDBank (HDB VN), Military Bank (MBB VN) and VPBank (VPB VN)*, which are involved in restructuring weak banks, newspaper reports, citing information from regulator. This is the 2nd time the central bank raised lending quotas for these banks.
• Economy 9M22 through the numbers: GDP increased by 8.83% YoY, the highest increase in 12 years. On average, 18,100 new businesses are established and re-operated every month. September CPI increased by 0.4% MoM and by 3.94% YoY. Vietnam maintained a low inflation rate of 2.73%.
• Credit balance of the whole system of credit institutions is expected to increase by an average of 4.1% in 4Q22 and 14.9% in 2022. Regarding PBT in 2022, 88.3% of credit institutions are expected to grow positively YoY, besides, there are still 6.8% of credit institutions that expect negative profit growth in 2022.