Securities Companies: Drawn Down Margin Loan Balances Hit Almost USD$10 billion
Aggregate margin loan book at the end of Q4 2024 peaked at nearly VND249 trillion (about USD9.9 billion, up +5% QoQ and +36% YoY), in which the top 10 brokers accounted for about 60% of the total. Additionally, Q4 2024 HOSE average daily trading value (ADTV) was around VND15 trillion (about USD600 million), down compared to three previous quarters.
Domesco (DMC VN): The state shareholder’s divestiture
HOSE announced that it will organize the public auction of over 12 million DMC VN shares owned by Vietnam’s Sovereign Manager, the SCIC, equivalent to 34.7% ownership. Abbott Laboratories Holdco Spa - a subsidiary of Abbott Laboratories (NYSE: ABT) - is currently the parent company of Domesco and holding 51.7% of shares outstanding.
Starting price for the amount of shares to be auctioned, based on overall value of VND1,531 billion (about USD61 million), implies a price per share of approximately VND127,000, far higher compared to DMC’s recent share price performance. Domesco reported its unaudited Q4 2024 financials with 2024 revenue of VND1,899 billion (about USD76 million, up +10.5% YoY) and net income of VND203 billion (about USD8 million, up +10.6% YoY). DMC VN closed at VND82,400 per share on 23rd January 2025, hence 14.1x P/E and 1.8x P/B.
VPBank (VPB VN): Recovery of business performance
The bank publicly announced its Q4 2024 financial position, recording Earnings Before Tax (EBT) of over VND20 trillion (about USD798 million, up +85% YoY), in which the parent bank alone contributed VND18.3 trillion, up +36% YoY, while FE Credit reported profit of VND500 billion. The parent bank’s 2024 credit growth rate was 19.4%, leading to a consolidated loan book balance of VND710 trillion at the bank and its subsidiaries. With recent engagement with Japan’s SMBC, year-end credit balance of VPBank’s FDI clients increased about 3x. The bank reported LDR of 81.6%, CAR of 15.4%, and NPL ratio of under 3% (at the parent bank). VPB VN closed at VND18,900 per share on 23rd January 2025, thus 9.5x P/E and 1.1x P/B.
Bidiphar (DBD VN): Surpassed 2024 target profit
The healthcare company generated revenue of VND1,728 billion (about USD69 million, up +5% YoY) and net income of VND275 billion (about USD11 million, up +2%). The authority of Binh Dinh province and Germany’s, KWE Beteiligungen AG are still two largest shareholders with 13.3% and 10% ownership, respectively. DBD VN closed at VND58,700 per share on 23rd January 2025, leading to 20x P/E and 3.3x P/B.
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