Tuesday, April 22, 2008
The Bank for Foreign Trade of Viet Nam (Vietcombank) recently announced that it plans to hold first shareholders' meeting this year on April 26 at the National Conference Centre in Hanoi.
The shareholders' meeting will discus on brief report on Vietcombank's equitisation process and pass the operation regulations, development orientation from 2008 to 2013, this year's business plan and the plan to list shares on the stock market this year.
This year, Vietcombank's total ownership capital could be over 20.331 trillion dong, up 53.62% against 2007 and nearly 211.084 trillion dong in total capital, rising 7.72% from 2007. The bank also targets to reach after tax profit growth of 11.68% against the previous year, pay a 12.08% dividend this year and reach a credit growth rate of 29.2% against 2007.
Vietcombank plans to continue selecting strategic investor within this year and offer more shares to hike chartered capital to 15 trillion dong in the third quarter of 2008. (DTCK)
Monday, 21 April 2008
Vietcombank to hold first shareholders' meeting in 2008
Top ten share codes attract foreign investors
Tuesday, April 22, 2008
Foreign investors' purchase volume last week reached high, especially they had paid special attention to blue chips, in which Saigon Securities Inc's SSI share code continued leading with nearly 3.3 million shares changing hands.
In the period, foreign investors bought 10,609.150 shares while selling only 2,312,690 shares. Notably, blue chips are favourite commodities as for foreign stock players, including SSI, DPM, PPC, and FPT. Though SSI took the lead in term of trading volume for foreigners, the trade was down 500,000 shares as compared with the previous week due to there were only three sessions last week.
Top ten favourite blue chips of foreign investors between February 14 and 18
1. SSI with 3,296,370 shares being purchased by foreign investors
2. DPM with 2,272,620 shares
3. PPC with 468,720 shares
4. FPT with 450,410 shares
5. VSH with 422,430 shares
6. PVD with 356,120 shares
7. VNM with 341,820 shares
8. VTO with 159,290 shares
9. DHG with 155,720 shares
10. PUBF1 with 100,920 shares
Last Friday particularly, foreign investors purchased about 4.5 million shares, fund units and bonds, a four fold increase then their selling volume. Especially, only 750,000 bonds were changed last week.
A representative from an investment fund said that blue chips were more attractive for foreigners because they have a high transparency, full necessary information for stock players, stable revenue and not have overdue debts.
When the VN Index exceeded 500 pts, foreign investors' purchase power was very high. Thanks to this, the stock market could not stand at the level of less than 500 pts in a too long time, he added.
According to Dao Trung Kien-financial analysis director of Vifinfo, the 2007 fiscal year has just ended. Some investment funds with high profit will use the abundant capital to seek new investment opportunities including in Vietnamese stock market. And they will pay much attention to large cap shares in the market. (TBKTVN)
Shareholders ignore banks' capital increase roadmap
Tuesday, April 22, 2008
The race of increasing chartered capital among joint stock commercial banks has raised a lot of wonders for the public when these lenders have poured billions of bank shares into the market in the context that the finance market is facing many difficulties.
Up to the end of March, the country has total 33 urban joint stock banks with a total chartered capital of 45.144 trillion dong. If each bank increases by about 80% in the current chartered capital, this year urban joint stock commercial banks will issue extra 36 trillion dong meaning 3.6 billion shares at 10,000 dong par to the market. The real figure could be higher because banks are racing to hike capital as high as possible. Particularly, Asia Commercial Bank plans to hike its chartered capital from the current 2.63 trillion dong to 6.355 trillion dong, meaning that the increase is 164%. Meanwhile, Eximbank's chartered capital will be raised by 164% from 2.8 trillion dong up to 7.4 trillion dong, EAB by 112% from 1.6 trillion dong to 3.4 trillion dong. The question is now raised that who will own billions of these additionally issued bank shares?
Hoang Xuan Quyen, analysis director of Tan Viet Securities Co said that first off, banks should keen on foreign investors that have a higher financial strength while domestic investors are suffering pressure caused by the stock market slump and their capital supply is being narrowed. In return, foreign investors also pay attention to shares of local banks with an attractive price through big efforts to hold over 10% stake in domestic banks.
After that, state commercial banks surely will not miss opportunities to buy into joint stock lenders that are demanding to hike capital. Finally, existing shareholders also have more opportunities to own extra shares of their banks thanks to the policy of paying dividend in shares or buying new shares at preferential prices.
In medium term, the demand for banking services especially banking retail services will soar considerably because more and more enterprises want to mobilise capital via the stock market and rely on the help from banks. Thus, from now to the end of the year, banks could more difficulties and their shares could be less attractive on the domestic capital market, Quyen forecasted.
Moreover, the rumours have been raised recently that shareholders now shun banks' capital increase roadmap due to the forecast that banks' profit targets cannot be reached in 2008 and general difficulties of the economy. Factually, in the first quarter, joint stock banks performed good business results, namely Sacombank with the profit of 435 billion dong, a rise of 44% yoy, ACB with 501 billion dong, a 1.2 time increase against 2007 and others. It is expected that domestic and foreign investors will re-consider the attractiveness of bank shares to save the kind of shares from the free fall like previous.
But, if banks' chartered capital is hiked too quickly with non-corresponding profit growth, the value of each bank share will surely decline sharply. One investor at Habubank Securities Co's trading floor said, this year ACB targets to reach a pre-tax profit of 2.5 trillion dong, EPS of 3,400 dong while Sacombank's STB share code targets EPS of 2,900 dong. The targets seem to be too low in comparison with the remaining medium and small shares on the stock market. For example, Viet Han Co with a chartered capital of 250 billion dong last year posted 86 billion dong in after-tax profit that is expected to gain 110 billion dong in 2008. If reaching the target, EPS of the company will be 4,400 dong, much higher than ACB and STB's.
If hiking chartered capital too quickly, banks themselves will make their shares to be penny commodities, according to the investor.
PAC to list 3m additional shares
Tuesday, April 22, 2008
The Ho Chi Minh City Stock Exchange (HOSE) on April 18 approved for the Dry Cell and Storage Battery Joint Stock Co (Pinaco-coded PAC) to list three additional shares worth 30 billion dong on the southern bourse.
According to the fiscal report in the fourth quarter of 2007, pinaco earned 327.895 billion dong in revenue, rising 154.4% against the same period of previous year and 16.491 billion dong from after tax profit, bringing the total figures of the whole year to 989.81 billion dong and 45.032 billion dong, a year-on-year increase 46.8% and 129% respectively.
Ending the trading session on April 18, PAC-coded shares up 900 dong or 1.92% to 47,700 dong per share with 26,510 shares being traded.
Bao Minh Insurance shares posted in the south
Monday, April 21, 2008
Bao Minh Insurance Joint Sstock Co has moved its shares, coded BMI, from the Hanoi Securities Trading Centre (HASTC) to Ho Chi Minh City Stock Exchange (HOSE) as of April 21.
As many as 75.5 million shares of the company will be listed with the total value of VND 755 billion. In the first session on the new floor, share prices were offered at VND 48,000 each with a margin of ± 20%.
Bao Minh Company is currently supplying more than 100 insurance services to the market with 59 subsidiaries and more than 8,000 agencies.
The company has chartered capital of VND 755 billion and total property valued at VND 3,108 billion. In 2007, it earned revenue of VND 1,711 billion, putting after-tax profit at VND 132.7 billion. (TBKTSG)
Large Number of Viet Nam Stock Brokers Facing Bankruptcy
Monday, April 21, 2008
The prolonged downturn in the Vietnamese stock market will push some out of 100 securities firms to withdraw out of the competition this year, state media reported.
A bullish stock market in late 2006 and early 2007 led to a boom of securities companies. Many ended the year 2007 with huge profits, such as Bao Viet with VND215 billion, Sacombank Securities VND164 billion, or ACBS VND332 billion.
However, small-scale stock brokers will have to face the severe competition in attracting clients from giants and the negative influence of the country's macro economy.
Some of the weak companies in human resource, IT and financial capacity, may have to announce bankruptcy in late 2008 or in early 2009 after they fail to be merged into big domestic and foreign institutions.
The local stock market has showed no sign of recovery in the short term so far, with VNI closing at 537.58 on April 17.
The State Securities Commission has received over 20 applications to open new brokerage firms. Corporations and groups still expect the market will grow 50 per cent annually in medium and long term.
The Dragon Capital Fund predicted Vietnam's stock market will have over 500 listed firms, one million investment accounts and the market value will reach US$100 billion by 2010. (Vneconomy, VNS)
HAPACO to increase charter capital
Monday, April 21, 2008
Shareholders of the HAPACO Joint Stock Company at the annual shareholders’ meeting on April 24, agreed to pay 15% dividend in shares and issue 26 million new shares to mobilise funds for new projects and increase charter capital to VND 500 billion.
HAPACO has been recognised as one of the ten most outstanding enterprises in the northern port city of Haiphong for the sixth consecutive years. The company involves in various business fields ranging from producing papers for exports, kraft paper, toilet paper, paper pulp, garments and textiles, financial and commercial services, industrial zones and petrochemistry.
Last year, HAPACO’s total revenue reached VND 263 billion, up nearly 43% compared to the previous year. The company posted an after-tax profit of over VND 73 billion, up 280% compared to the targeted figure.
Currently, HAPACO is implementing various projects including a 21-storey financial tower, the Nam Dinh Vu Industrial Zone, a petrochemistry plant with a capacity of 3 million tonnes a year and the Haiphong International Maternity Hospital.
Shareholders have also agreed to change the name of the company to HAPACO Corporation with 12 member companies and four joint ventures.
Viet Nam Property Fund Plans AIM Float April 25
Tuesday, April 22, 2008
Viet Nam Property Fund, a closed-end investment company that is newly incorporated under Cayman Islands law for the purpose of investing primarily in real estate in Viet Nam, said Monday that it plans to float on AIM.
The company will have a share capital of 90,000,000 Ordinary Shares of $0.01 each, at an issue price of $1 per Ordinary Share. The Ordinary Shares will be Regulation S restricted.
On admission $90,000,000 will be raised and the company's market capitalisation will be $90,000,000.
It is expected that dealings will start in the company's shares on April 25.
The company's nominated adviser and broker is Seymour Pierce. (Dow Jones)
April 21, Foreigners Net Buyers Of VND131.2 Billion Of Shares
Tuesday, April 22, 2008
April 21, Foreigners Net Buyers Of VND131.2 Billion Of Shares
Foreign investors were net buyers of VND131.2 billion ($ 8.22 million) of Vietnamese stocks Monday, out of a total VND262 billion traded, the Ho Chi Minh Securities Trading Center said.
Volume was 5.2 million shares, with foreigners accounting for 45% of the total, according to the stock market operator. (Dow Jones)
Indochina Capital enlarges VHG-coded shares
Tuesday, April 22, 2008
Viet Han Production and Investment Joint Stock Co (coded VHG) recently announced that Indochina Capital Vietnam Holding Limited bought more 60,000 VHG-coded shares, bringing the total shares to 3,554,800 shares or 14.22% of chartered capital.
Earlier, Indochina Capital Vietnam Holding Limited hold 3,494,800 shares or 13.88% stake of Viet Han Co.
In the fourth quarter of 2007, the company made a revenue of 89.828 billion dong and 6.759 billion dong from after tax profit, bringing the total figures of the whole year to 700.48 billion dong and 86.204 billion dong respectively, a year-on-year increase of 70.76% and 35.89%.
This year, the company plans to bring one trillion dong in revenue and 110 billion dong from after tax profit, pay dividend of 20% and approve many projects with the total investment capital of 325 billion dong.
The company's shareholders' meeting recently passed the plan to buy back 6.25 million shares or 25% of chartered capital to stabilise the price and serve its long-term targets.
Ending the trading session on April 18, VHG-coded shares added 500 dong or 1.82% to 28,000 dong per share with 11,060 shares being traded.
Gia Lai tourism and culture firm to list shares on HaSTC
Tuesday, April 22, 2008
Hanoi Securities Trading Center (HaSTC) on April 18 approved in principle for Gia Lai Tourism and Culture Joint Stock Co (Gia Lai CTC) to list shares on the northern bourse.
Under it, Gia Lai CTC with a chartered capital of 23.762 billion dong, of which state holds 19.8% and the remaining 80.2% belonging to the company's shareholders, will list 2,376,200 shares at 10,000 dong par.
Gia Lai CTC was established in 1975 with main functions of trading and publishing films and other free communication programmes to serve tribesmen in remote areas. The company made its equitisation in December 2004 and change name to Gia Lai Tourism and Culture Joint Stock Co specialising in trading and publishing books, stationeries, restaurants, hotels, entertainment areas and tourism transportation.
In 2007, the company reached 58.702 billion dong in revenue, 2.914 billion dong from after tax profit and paid dividend of 17%.
This year, the company targets to earn 100 billion dong in revenue, 7.056 billion dong from after tax profit and pay 17% dividend.
Cavico Corp. Breaks Ground on Its Calcium Carbonate (CaCO3) Plant
Tuesday, April 22, 2008
Cavico Corp. (Cavico) today announced that KASVINA, its wholly own subsidiary, has initiated construction of its calcium carbonate (CaCO3) manufacturing facility in Nam Cam Industrial Park, Vinh City, Nghe An province, located 186 miles north of Hanoi. It is expected that 60,000 tons of calcium carbonate will be produced annually. Cavico anticipates it will recover their $5 million investment within an estimated three to four years.
Calcium carbonate (CaCO3) is used for road building and as an ingredient in cement. It has other industrial applications including plastics, rubber, coating, construction materials, paper-making, processing, pharmacy, agriculture and feeds. Currently, Vietnam imports calcium carbonate. Cavico intends to export calcium carbonate to Japan, the European Union, China, and India, in addition to domestic sales.
It is anticipated that the calcium carbonate plant will be completed in seven months and in operation by December 2008. Raw materials for manufacturing calcium carbonate (CaCO3) will be supplied by two plants owned by KASVINA , Thung Voi and Thung Tom plants, located in Tan Ky city, Nghe An province. Their white mineral reservation capacity is estimated to be 872,000 and 10 million tons respectively.
Cavico intends to develop an additional calcium carbonate plant at Thung Xan where the reserves are estimated to be 25 million tons. This plant will be located in the city of Quy Hop, also located in Nghe An province.
As the largest non-government owned infrastructure construction company in Vietnam and a leader in Vietnam's energy and hydropower infrastructure construction, Cavico continues to expand. Cavico has begun to explore other rapidly growing areas of development in Vietnam and recently invested in the development of industrial complexes, urban infrastructure as well as building materials. Cavico believes its strong reputation will attract the financing needed to participate more fully in Vietnam’s prolific mining industry. (BUSINESS WIRE)
Petrolimex insurance buys 5 pct of 500,000 Vipco shares
Sunday, April 20, 2008
Viet Nam Petroleum Transport said Petrolimex Insurance, one of its major shareholders, bought only 25,730 of the 500,000 shares it had registered to buy.
The transport and ship repair company, known as Vipco, said Petrolimex Insurance had bought about 5% of what it had promised because the volume of Vipco shares being traded was too low during the March 6 to April 6 buying window.
The insurer’s share purchases raised its stake in Vipco to 5.79% from 5.74%, Vipco announced through the Ho Chi Minh Stock Exchange’s website.
The UK-based Amersham Industries Limited, another major Vipco shareholder with a 10.88% stake, canceled the sale of 3,524,000 Vipco shares, according to a report on the exchange’s website on April 16.
Vipco shares gained VND500, or 1.72%, to close at VND29,500 on Friday.
Royal International net profit up 17 pct
Saturday, April 19, 2008
Net income rose from $3 million in 2006, the company said Friday in a news release.
Revenue reached almost $10 million in 2007, up from $9.4 million.
“The casino received alot more visitors, mostly from overseas,” the company said.
Royal International, based in the northern coastal tourist city of Ha Long, said it expects profit to triple to $10 million, and revenue to double to $20 million in 2008.
The stock dropped VND800, or 2%, to close at VND40,200 Friday. (Bloomberg)
Ministry to ease rules on big foreign fund managers
Saturday, April 19, 2008
Foreign fund management firms seeking to set up a branch domestically would be required to have a capital of 500 million USD or more, according to the draft.
Such newly-opened companies or branches would only be authorized to provide asset management services for foreign traders on the domestic stock market.
“The draft will become a basis for the finance ministry and other market regulators to manage the business of foreign fund management companies,” said Hoang Phong, a partner with Thanh Ninh law firm.
The draft regulation, if approved, would help attract more overseas capital to the local stock exchange, he said.
The draft would also allow wholly foreign-invested fund management companies to merge with or acquire local companies, although branches of overseas firms would require authorization to do so from their parent firms.
Partially foreign-invested fund management fund would also be allowed to reorganize into a wholly foreign-invested domestic companies, the draft provides. (VNA)
Foreign Banks Hard to Acquire Market Share in Viet Nam
Sunday, April 20, 2008
The State Bank of Viet Nam, the central bank, has given and will grant licenses to foreign banks to set up 100% foreign-owned affiliates, but they will not find it easy to acquire market share, the New Hanoi newspaper reported.
Foreign banks now account for 3.3% of outstanding loans in Vietnam dong and 21.7% of loans in foreign currencies among credit institutions in Vietnam.
Despite quite high credit growth rates, foreign banks only focus on providing loans for foreign-invested companies and large-scaled domestic companies by financing imports and purchases of advanced technical equipments.
Vietnamese customers also complained that foreign players have not focused on retail banking services yet and they have not made any strong impressions. They have poor products with loans provided just for buyers of automobiles or houses.
Banking experts said foreign banks have not boosted retail banking services because of limit in raising Vietnam dong capital and asynchronous legal framework.
Before penetrating into Viet Nam’s retail banking market, foreigners will need time to study local business practices and consumer cultures.
The difficulties in convertibility of Viet Nam dong and interest rate liberalization also prevent foreign banks from taking advantages of their capital and technology, analysts said.
Foreign lenders will also face difficulties as domestic players are improving quality of operations, administration and expanding network under the pressure of the country’s WTO entry. Techcombank, ACB, Sacombank and VPBank have gained access to the advanced administrative technology for long time thanks to selling stake to foreign partners.
The State Bank of Vietnam has recently allowed HSBC and Standard Chartered banks to set up their wholly owned affiliates in Viet Nam.
Admitting difficulties in acquiring the market share in Viet Nam, HSBC still affirmed that the bank will is building new products and services in order to boost retail banking in Viet Nam, targeting consumer lending.
HSBC said it will not focus on competing in prices, but in services quality.
Standard Chartered also said it will expand to retail banking market. It plans to open 20-30 branches and install about 250 ATMs in coming time. (New Hanoi)
Petrolimex insurance buys 5 pct of 500,000 Vipco shares
Sunday, April 20, 2008
Viet Nam Petroleum Transport said Petrolimex Insurance, one of its major shareholders, bought only 25,730 of the 500,000 shares it had registered to buy.
The transport and ship repair company, known as Vipco, said Petrolimex Insurance had bought about 5% of what it had promised because the volume of Vipco shares being traded was too low during the March 6 to April 6 buying window.
The insurer’s share purchases raised its stake in Vipco to 5.79% from 5.74%, Vipco announced through the Ho Chi Minh Stock Exchange’s website.
The UK-based Amersham Industries Limited, another major Vipco shareholder with a 10.88% stake, canceled the sale of 3,524,000 Vipco shares, according to a report on the exchange’s website on April 16.
Vipco shares gained VND500, or 1.72%, to close at VND29,500 on Friday.
