Inside H1 business results of 23 firms with over $1bn on stock market

Saigon Securities Inc is the largest listed securities firm with the market cap at US$573 million. — Photo ssi.com.vn Viet Nam’s booming stock market, recognised as one of the best performers in the world, has raised the value of many securities firms. The benchmark VN Index on the HCM Stock Exchange has gained 18.6 per cent since the beginning of this year. On the Ha Noi Stock Exchange, the HNX Index has climbed 27.2 per cent in the same period. Shares of securities companies have been on the investors’ favourite list, and many firms have seen their value doubling, and even tripling, in the first seven months of 2017. This impressive growth is largely owing to the companies’ positive business results. As of August 4, the market value of 11 securities companies has exceed VND1 trillion (US$44 million). The top four companies in the country are Saigon Securities Inc (SSI), Viet Capital Securities JSC (VCI), HCM Securities Corp (HCM) and VNDirect Securities JSC (VND). SSI, valued around VND13 trillion ($573 million), is the largest securities firm across all indicators, including charter capital, revenue and profit. Its share prices have climbed 30 per cent this year, and on Friday they were at VND26,400 per share, which is lower than its peak of VND28,600 a share on July 6. Viet Capital Securities made its debut on the southern bourse on July 7, and has already joined the trillion-dong club at a…... [read more]

Shares continued rising in early August but observers are predicting a slowdown in the short term as shares have become expensive and exposed to profit-taking risk. The benchmark VN-Index on the HCM Stock Exchange rose by 1.5 per cent in the first week of August and has expanded 18.6 per cent since the beginning of this year. On the Ha Noi Stock Exchange, the HNX-Index edged up 1.4 per cent las week and 27.2 per cent over the end of last year. The Vietnamese stock market has been one of the best performers in the world. “I think this increase has reflected investor expectation in 2017. The general market development is fairly reasonable but many stocks have grown expensive and less attractive for investors seeking short-term profits,” said Vo Van Cuong, director of analysis at Maritime Securities Co. Price to earnings (P/E) ratio of the Vietnamese securities market has increased to 16.6 times, the highest since 2008 and no longer cheap in comparision with other regional markets, and the risk of a correction is rising, Cuong told tinnhanhchungkhoan.vn. “Many stocks are being overvalued while their growth potential is limited,” he said. The VN-Index failed to overcome the short-term resistance of 790 points in the last two weekend sessions but still maintained a nine-year peak of over 788 points that indicated investor caution and hesitation about the market uptrend. Selling pressure increased in large-cap stocks in the weekend trades, especially bank stocks which were negatively affected by the arrest of two…... [read more]

In the context of fierce competition among brewers, two of Vietnam’s largest brewers Sabeco and Habeco have millions of dollars on advertisements, which they consider an important weapon in the race to gain the market share, according to newswire Vnexpress. Sabeco and Habeco's advertisement spending bring little to no success (Illustration image) Notably, according to its half year report, Sabeco spent VND740.3 billion ($32.5 million) on advertisements and promotional communications campaigns, equaling 53 per cent of sales expenditure and signifying an increase of VND333 billion ($14.5 million) compared to the same period last year. According to Sabeco chairman Vo Thanh Ha, the corporation is facing heated competition with leading brewers in terms of brand image and financial potential. Besides, customers are increasingly consuming high-end beer products, while Sabeco has yet to come out with products at this segment. Thus, one of the most important targets of Sabeco in 2017 is retaining its existing market share. Habeco, in the first six months, spent VND223 billion ($9.8 million) on advertisements, promotion, and communications programmes, doubling the figure on-year. According to the theory, when firms increase spending on advertisements, their business results will improve. However, in reality, efficiency has been decreasing. In 2012, Sabeco’s revenue was 50 times higher than its expenditure for advertisement, promotion, and communications programmes, however, in the first six months of this year, the figure was 20 times only. Regarding Habeco,…... [read more]

Shares continued rising in early August but observers are predicting a slowdown in the short term as shares have become expensive and exposed to profit-taking risk. — VNA/VNS Photo Shares continued rising in early August but observers are predicting a slowdown in the short term as shares have become expensive and exposed to profit-taking risk. The benchmark VN-Index on the HCM Stock Exchange rose by 1.5 per cent in the first week of August and has expanded 18.6 per cent since the beginning of this year. On the Ha Noi Stock Exchange, the HNX-Index edged up 1.4 per cent las week and 27.2 per cent over the end of last year. The Vietnamese stock market has been one of the best performers in the world. “I think this increase has reflected investor expectation in 2017. The general market development is fairly reasonable but many stocks have grown expensive and less attractive for investors seeking short-term profits,” said Vo Van Cuong, director of analysis at Maritime Securities Co. Price to earnings (P/E) ratio of the Vietnamese securities market has increased to 16.6 times, the highest since 2008 and no longer cheap in comparision with other regional markets, and the risk of a correction is rising, Cuong told tinnhanhchungkhoan.vn. “Many stocks are being overvalued while their growth potential is limited,” he said. The VN-Index failed to overcome the short-term resistance of 790 points in the last two weekend sessions but still maintained a…... [read more]

The income from service fees will contribute roughly 20 per cent to the total revenue of the entire banking system by 2020, doubling the current rate. Service fees will roughly contributed 20 per cent to the total earnings of the local banking system by 2020, according to the State Bank of Viet Nam. - Photo doanhnghiepvn.vn This was stated in the project on restructuring credit institutions in the period between 2016 and 2020, released by the State Bank of Viet Nam (SBV) recently. Compared with the rates in other regional countries, Viet Nam’s proportion is currently equal to Indonesia’s but is much lower than Malaysia’s (20 per cent) and Thailand’s (30 per cent). According to experts, the target is challenging because it requires banks to prioritise resources in product development, which can help firms get funding but not through bank loans as currently. The products are derivatives, which are the combination of the stock market and the monetary market. At that time, banks will only play the role of intermediary to bring the capital of people directly to the firms. However, it is a must as it will help banks avoid risks from too much lending. The country experienced the negative consequence in the period between 2006 and 2011, when credit growth was at 30 per cent, causing banks to suffer a large amount of bad debts that have yet to be settled. …... [read more]

Penny stocks hit ceiling pricesPhuong Thao HCMC – Up to 38 penny stocks on both exchanges shot up to their ceiling prices on August 3, led by strong cash flow, and the stock indexes rose after one session of correction. On the HCMC market, many small and speculative stocks such as property firm HAR, agricultural chemical producer HAI and financial investment group OGC did well. The prices of most stocks in the mining sector such as KSA, LCM and DHM also hit their upper limits. The VN-Index added a slight 0.29% at 788.49. Trading volume on the southern exchange dropped 4.6% to nearly 209 million shares but value rose 3.5% from the previous day to over VND4.2 trillion. The put-through market saw 13.5 million shares worth VND539.4 billion traded, including 2.5 million shares worth VND107.5 billion of consumer goods producer MSN, 1.9 million shares worth VND103.4 billion of technology firm FPT and 1.5 million shares valued at VND93.6 billion of securities company VCI. In the banking sector, BID gained 2% and VCB increased 0.5% while CTG and MBB closed at their reference prices, and STB lost nearly 2%. Among large caps, dairy firm VNM contributed most to the main index as it added 1% to VND154,000 a share with matching volume of over 700,000 shares. The Hanoi market made better gains as some pillar stocks advanced, lifting the HNX-Index up 0.46% at 101.44. Turnover improved strongly with trading volume and value jumping 1.6% and 12% to 76.4 million shares worth…... [read more]

Czech-backed consumer financial firm Home Credit Vietnam has reaped good business results in the year’s first half. Home Credit reported positive performance in motorbike loans this first half RELATED CONTENTS: Home Credit advances with digital technology Big Data transforms Home Credit Vietnam operations Home Credit Vietnam hit big jackpot Home Credit hit FinanceAsia’s high-profile prize Home Credit Vietnam opens a promotion programme The firm reported that it enjoyed a year-on-year 38 per cent rise in motorbike purchase loans last year, and a year-on-year increase of 60 per cent in this year’s first half. The firm’s head of Sales Jiri Badr ascribed this dramatic rise to changes in Home Credit’s development strategy in the two-wheel segment in 2016. Specifically, the firm launched a product with the lowest interest rate on the market (1.39 per cent per month). Loan application procedures have also been simplified, meaning customers only need to show their identity cards (ID) and driving licences, instead of ID and family registration books. Besides, Home Credit has entered into a co-operation with partners in deploying interest-free loans for motorcycle purchases. Currently, 20 per cent of Home Credit’s customers have been enjoying 0 per cent interest rate loans to acquire motorbikes. “This year, Home Credit sets a goal of increasing…... [read more]

Eins Vina, a unit of South Korean Sea-A Group, is planning to increase investment in its projects in Song Than II Industrial II Park of the southern province of Binh Duong. Tran Thanh Liem held talks with Tony Pyeon At a meeting with Tran Thanh Liem, chairman of the Binh Duong People's Committee on July 31, Tony Pyeon, general director of Eins Vina, said that the company is operating two factories in Song Than II Industrial Park (IP) in Di An town and in Binh Chuan ward of Thuan An town, creating jobs for 9,000 labourers. Tony Pyeon said that in the coming time, the company will continue to enlarge its projects. He also discussed with local leaders the province's policy to relocate manufacturing factories into IPs. Liem, in response, said that the province has a policy on restraining the licensing of investment projects outside IPs, as well as labour-intensive works in southern areas. Binh Duong is now calling on investors to renovate business lines and technologies towards enjoying the country's tax incentive policies. Liem affirmed that the province will continue to improve the business climate, develop IP infrastructure, and intensify administrative reform to facilitate business activities. Keeping manufacturing and textile and garment operations in Binh Duong since 2005, Eins Vina has achieved good business results over the past 12 years, with 80 per cent of its products exported to the US. …... [read more]

Passengers get off from a Vietjet’s airline. — VNS Photo Vietjet Aviation Joint Stock Company (HOSE code: VJC) posted a pre-tax profit of US$84.7 million in the first half of 2017, a year-on-year rise of 45 per cent. The company’s revenue in the period stood at $730.7 million, an increase of 31 per cent compared to previous period, shows its unaudited business results, which were released last week. Vietjet’s revenue in the second quarter reached $503 million, an increase of 89 per cent year on year, while its pre-tax profit for the same period hit around $66.1 million. In the first six months of 2017, the company’s growth in passengers on international routes rose by 130 per cent, making it the main momentum for last quarter’s growth, Vietjet said in its statement. As of June 30, Vietjet’s total assets were around $1.1 billion, representing an annual rise of 50.8 per cent, while its owners’ equity reached $355.04 million, an increase of 130 per cent year on year. Around 8.27 million passengers flew on Vietjet in the first half of 2017, an increase of 22.4 per cent year on year, with a load factor of 87.7 per cent, as per the latest data. From January to June, the carrier operated 49,151 flights, with a technical reliability rate of 99.55 per cent and on-time performance rate of 85.7 per cent. In July, Vietjet broke ground for the construction of Vietjet Aviation Academy in HCM…... [read more]

Stocks jump over six pointsPhuong Thao<p align="left" class="SGTOSummary"> HCMC &ndash; The stock market closed July on a positive note as the VN-Index added 0.83% at 783.55, backed by the strong rises of large caps.</p> <p class="SGTOContent"> The HCMC bourse saw 267 million shares worth VND4.7 trillion changing hands, up 33.5% and 15% against last Friday respectively. There were 8.2 million shares traded in bloc deals with a total value of nearly VND360 billion.</p> <p class="SGTOContent"> Active trading of penny stocks was behind the sharp increase in volume. However, many stocks steeply declined due to strong selling pressure.</p> <p class="SGTOContent"> Property firm FLC was the most actively traded stock on the southern market but it plummeted 3.5% at VND7,140 per share with 35.8 million shares traded, followed by OGC, a financial investment group, which also lost 3.5% at VND2,200 a share with volume of 20.3 million shares.</p> <p class="SGTOContent"> Among steel stocks, HSG tumbled to the floor price of VND28,000 per share with its trading volume hitting a new high of 16.2 million shares probably because of its gloomy business results in the previous quarter. Meanwhile, POM fell to the floor price before closing with a 6.2% loss at VND15,950 a share.</p> <p class="SGTOContent"> On the other hand, bank stocks made handsome gains. Except for EIB that fell a hefty 4.5%, BID climbed 5.7% at VND22,200 a share with matching volume of over 6.7 million shares, MBB advanced 1.3%, STB added 2.3% and CTG grew 4.6%.</p> <p class="SGTOContent"> Many large caps…... [read more]




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