Week 12/09 – 16/09

Combining stock news + some interesting country specific news.

Stock News

ACV VN

Vietnam’s transport ministry directs ACV and concerned units to speed up construction of Long Thanh International Airport in the southern province of Dong Nai and ensure the operation of the first flight on Sep 02, 2025, news website reports, citing an order from the Ministry of Transport

Comment: The infra projects have been stupidly slow during covid and with the internal politicking over who is the next secretary of the party, perhaps the VN mkt won’t move positively until next year.

DGC VN: According to the 2022 plan, revenue from yellow phosphorus products will contribute 59% of the group’s total revenue. In 1H22, yellow phosphorus sales increased by 185%, helping DGC’s profit surge. Yellow phosphorus prices recovered 34.6% within a month due to drought in Sichuan, which accounts for 20% of China’s P4 production.

Comment: They’ve done incredibly well during the commodity bull run.

DXS VN

On Sep 09, BoD approved to transfer the entire contributed capital of DXS at Real Estate Plus Corp and Nam Bo Invest Service JSC to potential partners. In particular, total transferred shares would be 275k shares (equivalent to 55% of the voting shares of Real Estate Plus Corp) and 378k shares (representing 63% of the voting shares of Nam Bo Invest Service JSC), respectively. After completing the transfer, 02 companies will no longer be DXS’s subsidiaries.

HVN VN: Vietnam Airlines is trying to prevent its shares from being delisted from the HOSE due to mounting losses, but it needs approval from the government for its restructuring. The plan, which includes divesting from some subsidiaries, potentially Pacific Airlines, and issuing more shares, will provide it with cash.

Comment: Then they’re going to break their own rules and regulations. Then again….its a communist country.

MSN VN: put into operation 27 WIN convenience stores in Hanoi and Ho Chi Minh City. In 2022, MSN plans to open 80-100 WIN stores across the country.

Comment: And its off to the races, MWG vs MSN. Place your bets.

NVL VN:

approved the appointment of 3 more members of the Board of Directors from September 9, namely Mr. Nguyen Ngoc Huyen, Mr. Nguyen Duc Dung and Mr. Jeffrey David Perlman. In which, Mr. Jeffrey David Perlman is an independent member of the Board of Directors. NVL proposes investment proposals for Dak Long Thuong lake project with a scale of about 30,000 hectares in Bao Lam district. Objectives of investment in building a complex with synchronous infrastructure and full utilities.

POW VN: in August, revenue estimated more than VND1,868 bn (+3% YoY). Electricity output in the month is estimated at 967.6 mn kWh, almost unchanged YoY.

Comment: Perhaps I’m juvenile but perhaps they should change their stock ticker….As a comparison to Thailand, the power reserve margin in VN is only 5%…TH has 40%…how will VN power their growth?

TPB VN: Moody’s has just upgraded the credit rating of TPB to Ba3, stable outlook. This is a high rating from Moody’s and only a few banks in Vietnam have been upgraded in this assessment.

Comment: You’re going to see an obvious spread between the good quality banks in VN versus the weaker performers in the coming years.

VCI VN

100.5mn VCI shares which were previously issued as 2021 stock dividend, will be ready for trading on Sep 20.

Comment: This does add to share price pressure in the short term.

VIC VN:

VinFast has just announced its auto business results in August with the total number of cars sold being 1,220 units, -43% MoM and -47.2% YoY.

Comment: One thinking is that their EV pipe dream is going to be an absolute flop. They’ve gone all-in, can’t raise capital in the US like they dreamed, completely stopped their ICE manufacturing , so the domestic trust in their brand is gone.

VIW VN

State Capital Investment Corp. (SCIC), the investment arm of Vietnam government, will auction its entire 56.95mn shares (equivalent to 98.16% stake) of Vietnam Water and Environment Investment Corporation – VIWASEEN (VIW VN), at starting price of VND1.348trl a bloc on Sep 23. A bloc has 56,949,500 shares, according to SCIC’s website statement.

VNM VN:

Vinamilk’s dairy factory project was approved by the People’s Committee of Hung Yen province, with a total investment of VND4,600 bn. The project is divided into two implementation phases, phase I starting from 4Q22 to 2028 and phase II from 2028 to 2030.

Comment: A GDP multiplier play at best.

VPB VN: Digital bank Cake by VPBank and Be have signed a comprehensive cooperation agreement with Viettel Money from Viettel Group’s digital financial and commercial ecosystem. Viettel Money’s 20 million users will have access to Cake digital banking’s exclusive products including savings deposits and consumer loans with lots of incentives. Viettel continues to be Be’s partner in terms of online cashless payment for all services.

Comment: I have a natural bias towards vpb as it was the first name we bought during the ipo. Love the execution by the management.

VSH VN

REE Energy Co Ltd – a subsidiary of Refrigeration Electrical Engineering Corp. (REE VN), which relates to VSH’s BoD Member Nguyen Quang Quyen, registered to buy 4mn VSH shares via order-matching and/or block trade methods from Sep 19 to Oct 17. If successful, its stake would be increased from 50.45% to 52.15% (123.2mn shares). FYI, Mr. Quyen is also the Vice CEO of REE VN.

News

  • *ETF Rebals today:* VanEck Vectors Vietnam ETF (V.N.M) to add HAG and exclude APH & CEO while FTSE Vietnam ETF to exclude KDH & SBT and add none.
  • Auto sales in Vietnam went up for the third month in a row with 30,846 units sold in August (+247%YoY). Sales were highest since May when over 43,800 units were sold. But it rose only 2% MoM. For 8M22, 262,940 cars were sold in Vietnam (+49.9% YoY).
  • The UK – Viet Nam Free Trade Agreement (UKFTA) was providing significant opportunities for Viet Nam to expand the export of steel and iron products in the UK. Customs statistics showed that the export of iron and steel products to the UK totalled nearly 419,000 tonnes in 2021, worth more than US$491 mn, compared to the volume of just 51,851 tonnes and the export value of $35.88 mn recorded in 2020.
  • For 8M22, rice exports reached over $2.3 bn (+18.1% in volume and +8.1% in value YoY). Despite the increase in both volume and value, the price of rice has decreased compared to 2021.
  • Vietnam’s overall online retail sales hit US$13.7b in 2021, up US$1.9b over 2020*, according to the Vietnam E-commerce White Book 2022 released by the Vietnam e-Commerce and Digital Economy Agency. Compared to the US$6.2b figure in 2017, the online retail market doubled in size in just five years. It is estimated that Vietnam’s online retail sales will soar to US$16.4b this year. Revenue of Vietnam’s internet economy reached US$21b in 2021 and is expected to shoot up to US$57bin 2025, ranking second in Southeast Asia. (https://english.thesaigontimes.vn/vietnams-online-retail-sales-hit-us13-7-billion-in-2021/)
  1. Yes VIC is certainly all-in on Vinfast. Could turn out like Putin in Ukraine. They do have an amazing track record with seizing opportunities, so what happens remains to be seen. A long wait though, they need that IPO for a re-rate more than cash. The risk-rewards ratio is so much better with the listed subsidiaries.

  2. But why do you think domestic trust is gone, and why does it matter? ICE is out, that’s all. And they don’t even aim their EVs for the Vietnam market.

    • Because imagine you bought a car from Vin Group and a few years later you can’t get parts or service. What would be your thinking as a consumer for the rest of their brands?

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