VinaCapital - Banking Industry Outlook for 2025
Leading Vietnam focused fund manager VinaCapital in its latest banking sector report notes banks remain an attractive asset class in 2025, trading at x1.3P/B and projected ROE of 16%. VinaCapital also noted that Vietnamese Bank stocks EPS growth is projected at 17% for 2025.
VietABank (VAB VN) – Dismissal of a DCEO and Board Member Election
The bank announced that Mr. Pham Linh will cease to be a DCEO because of personal matters. At the same time, VietABank has also prepared for their 2025 AGM with adding 2 additional seats in the Board (in which, one will be independent), followed by election for these two, thus resulting in 7 Board Members in total. VietABank generated Q3 2024 total operating income of VND530 billion (about USD20.9 million, up +59.8% YoY) and net profit of VND189 billion (about USD7.5 million, up +241.1% YoY). Operating ratios such as NPL ratios, LLR, LDR were bullish compared to the previous quarter. VAB VN was last traded at VND8,900 per share on 13th January 2025, hence 5.3x P/E and 0.6x P/B.
TNH Hospital Group (TNH VN) – A major institutional shareholder plans to buy more shares
Access S.A.SICAV – SIF – ASIA TOP PICKS (based in Luxembourg) registered to purchase 2 million TNH VN shares due to portfolio restructuring. If successful, this will increase its holding up to nearly 12 million shares, equivalent to 8.3% of current shares outstanding. Even with this potential post-trade ownership, this investor will still be the third largest shareholder, after KWE Beteiligungen AG (10.5%) and Blooming Earth Pte. Ltd. (9.1%). A few days ago, TNH launched a new compensation and benefits program in order to attract medical talents, paying a lucrative signing bonus to them based on their qualifications. TNH recorded a bearish result for Q3 2024, recording revenue of VND110 billion (about USD4.3 million, down -41% YoY) and net income of VND9 billion (about USD355,000, down -81% YoY). TNH closed at VND19,750 per share on 13th January 2025, thus 29.3x P/E and 1.7x P/B.
VNG Corporation (VNZ VN) – Forming a new subsidiary
The tech giant has announced it will establish a new company named 2Morebits Co., Ltd., operating in software business with initial capital of VND20 billion (about USD788,000) into this entity. Mr. Le Hong Minh – Chairman of VNG, will become the legal representative of this new subsidiary. VNG posted losses in recent quarters, however it still held VND3,106 billion (about USD122 million) of highly liquid assets, most likely backed by an increasing debt balance of VND2,228 billion (about USD88 million). VNZ VN was last traded at VND360,600 per share on 13th January 2025, still negative P/E and 7.4x P/B.
Investor can see the full Newsletter below:
