Vingroup (VIC VN) - H1 2024 Reviewed Financials Shows Net Income Up 52.8%, YoY
Vingroup reported its reviewed financials for H1 2024 with consolidated net revenue of VND64,066 billion (about USD2.56 billion, down -25.7% YoY) and net income of VND4,416 billion (about USD177 million, up +52.8% YoY). VIC VN closed at VND41,600 per share on 9th October 2024, down -14.2% from its 52-week high, hence 44.3x P/E and 1.2x P/B. In addition, the Board of Vingroup passed a resolution on providing payment guarantee and has approved to use assets as collateral for Vinfast’s secured bonds related to its upcoming bond private placement, totaling up to VND6.5 trillion (approximately USD264 million).
Viconship (VSC VN) – To purchase 12.8 million VNA VN shares without tender offer
Viconship plans to purchase 12.8 million shares of Vinaship (VNA VN), equivalent to 37.55% of shares outstanding, without making a tender offer due to the previous approval of Vinaship’s EGM. At an expected purchase price of VND27,000, the acquirer will need around VND345 billion in cash to complete the transaction.
Potential sellers include Vietinbank Capital with 5 million shares and 14 other individuals collectively holding the rest. However, the state-backed shareholder - Vinalines (MVN VN), also owning 51% of Vinaship and thus the parent company, takes no action on its stake. Viconship did not possess any stake in Vinaship by the end of Q2 2024 while Vietinbank Capital is still the largest shareholder of Viconship with 16.12% of economic interest.
Viconship announced its reviewed business results for H1 2024 with consolidated net revenue of VND1,304 billion (about USD53 million, up +30.7% YoY) and net income of VND113 billion (about USD4.6 million, up +48.8% YoY). VSC VN closed at VND17,400 per share on 9th October 2024, down -21.1% from its 52-week high, hence 26.2x P/E and 1.2x P/B.
FTSE Russell: Keep considering Vietnam capital markets for an upgrade in 2025
FTSE Russell noted that Circular No.68/2024/TT-BTC had addressed two main issues for foreign institutional investors: (1) pre-funding; and (2) Vietnamese-only information disclosure. However, respecting the fact some other issues remain. It is now expected FTSE Russell will next review Vietnam in March 2025, with potential upgrade in 2025.
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