Banking: Restructuring of GPBank and DongABank likely to be completed before Tet
The SBV has been working on restructuring two banks and this is expected to finish in the next few weeks, but has not disclosed the names of the big banks involved in these bailouts yet. Recall: The leaders of VPBank (VPB VN) participated in the Chairman and CEO appointment event of GPBank in 2022, and the Board of HDBank (HDB VN) passed a resolution on an acquisition of a failed bank, suggesting DongABank as a potential option.
The SBV also discussed the projected credit growth rate of 16% for 2025, stating that it is not neither mandatory nor target but directional, so it can be variable depending on inflation rate, economic growth, and currency stabilization policies. VPBank reported total operating income of VND15,063 billion in Q3 2024 (about USD594 million, up +33.8% YoY) and net profit of VND4,028 billion (about USD159 million, up +66.1% YoY). VPB VN closed at VND18,850 per share on 8th January 2025, leading to 11.3x P/E and 1.1x P/B.
PV Oil (OIL VN) – Estimated business performance for FY2024
Vietnam’s 2nd largest fuel retailer announced its preliminary financial results for 2024, recording total revenue of VND131,000 billion (about USD5.16 billion, up +19% YoY), in which revenue from global markets accounted for nearly all the growth. Consolidated profit, not clearly defined after-tax or pre-tax, was VND631 billion (about USD25 million). PV Oil sold nearly 5.6 million m3 (tons), and opened 95 new company-owned filling stations (resulting 838 in total), leading to 23% domestic market share.
SK Energy (Korea) is still a major shareholder of PV Oil with 5.23% ownership. OIL VN closed at VND12,200 per share on 8th January 2025, thus 42.8x P/E and 1.2x P/B. To remind, EPS and BVPS are still calculated based on Q3 2024 financials.
Yeah1 Group (YEG VN) – Follow-on public offering was approved
The SSC approved the plan of public offering filed by Yeah1, meaning that over 54.8 million additional YEG VN shares will be offered to existing shareholders at a price of VND10,000 per share. If successful, Yeah1 can have proceeds of VND548 billion (about USD21.6 million) to invest in its currently active production house (40%) and to settle several debts (60%). The entertainment company announced Ex-date as 17th January 2025.
Before this public offering, the company issued 5.6 million ESOP shares to its employees. YEG VN closed at VND17,000 per share on 8th January 2025, hence 33.3x P/E and 1.7x P/B.
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